Orange Fast Facts - Networks

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10 Δεκ 2013 (πριν από 3 χρόνια και 7 μήνες)

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Updated February 2013


Orange Fast Facts - Networks


Key Facts

LTE
 LTE is the natural evolution path of the GSM/UMTS/HSPA operators, and is expected to bring
strong improvements in terms of speed, capacity and response time for the customer, as well
as in terms of costs for the operator.
 The Group strategy on LTE is to prepare for a “right first time” launch with enough devices
available, network deployed and of good quality, and operational processes in place.
 France Telecom-Orange did LTE trials in 2009-2011 in order to acquire a detailed knowledge
of this new technology, to ensure that we fully master it to the best satisfaction of our
customers before the commercial launch.
 End 2012, LTE was in commercial service in 7 countries: France, UK, Moldova, Romania,
Luxembourg, Mauritius and Dominicana. In addition LTE deployments have started in Belgium
and Spain.
 The Group’s objective is to roll out, by 2015, 4G/LTE networks in all the European countries in
which it is present.

Mobile network transformation

 In France, Orange offers the widest spread coverage in metropolitan centers, with 98.5% of
the population receiving 3G+ coverage at the end of 2012. (Source: www.orange.fr).
 HSPA+ 42, which increases bandwidth, network capacity, and improves network response
times,even further for customers, is currently being rolled out in Orange European countries.
 To prepare for the coming years and be able to support bandwidth upgrade and the
development of new functionalities (in particular HSPA+, LTE, quality of service management),
Orange launched in 2010 a programme to replace all 2G and 3G radio equipment with next
generation multi-standard equipments (able to manage 2G, 3G and LTE standards). At the
Group’s scale, about 50,000 radio sites will be replaced in the framework of this programme
(around 2015 in Europe), with a strong activity between 2011 and 2013.
 In parrallel a program to upgrade mobile backhaul to IP solutions is also being run in Europe.

 Network coverage (to be used reactively) - outdoor coverage

o Europe: Orange rolls out HSDPA/HSUPA throughout all European countries where the
Group is present. In most countries, the 3G network is now 3G+.

% coverage of the
population
FR SP

PL

BE

RO

Mold SK
3G/3
G+

source:
Morpheu
s
and
countries
(end
2012)
98.5% 92.2% 69.0% 94.0%

98.4% 96.6% 72.3%


o France: Already a leader in terms of coverage in France, Orange
enhanced its 3G+ network in 2010 by doubling its network speed, by increasing from the
HSDPA 7.2 standard to the HSDPA 14.4 standard. The 1.4-Mbit/s HSUPA is available
Updated February 2013


throughout the 3G+ coverage area since January 2009. At the end of 2012, 98.5% of the
population has 3G+ coverage (source: www.orange.fr).
‐ In its 2G/3G networks quality of service report dated 30 November 2012, ARCEP
confirms Orange provides the best mobile network in metropolitan France, rated
first or first placed equal on 192 out of 223 criteria measured. As a conclusion of
the survey:
 Orange is n°1 for the quality of its vocal communications
 Orange offers the fastest mobile data rates on its H+ and 3G+ networks:
downloading a file on the move through a H+ tablet or a smartphone is fastest
on the Orange network in 9 cases out of 10
 Orange is n°1 for the metropolitan mobile network coverage

o Outside of Europe: In a great number of AMEA Orange countries, the 3G/3G+
networks were rolled out or are being rolled out, focusing on major cities and on fixed and
mobile services for the moment. In other countries, the rollouts will be completed once 3G
licenses are granted. Orange has committed himself to deploy 3G+ networks in all AMEA
countries by 2015.
































IMS
 IMS comprises the technology and target architecture for interactive services in an all-IP
environment.
 France Telecom has been one of the pioneers in the implementation of IMS with fixed VoIP
rolled out for enterprises and consumers.
Maroc
Tunisie
Egypte
Jordanie
Kenya
Cameroun
République
Centre
Africaine
République
Démocratique
du Congo
Ouganda
Madagascar
Botswana
Niger
Mali
Sénégal
Guinée Bissau
Guinée Conakry
Côte d’Ivoire
Ile Maurice
3G en service
Irak
Guinée Equatoriale
Maroc
Tunisie
Egypte
Jordanie
Kenya
Cameroun
République
Centre
Africaine
République
Démocratique
du Congo
Ouganda
Madagascar
Botswana
Niger
Mali
Sénégal
Guinée Bissau
Guinée Conakry
Côte d’Ivoire
Ile Maurice
3G en service
Irak
Guinée Equatoriale
Updated February 2013


 In the mobile realm, the France Telecom Group was one of the first operators to test the joyn
standard-based RCS (Rich Communication Suite) using IMS, and was the first to launch
commercial Joyn service in Spain, with Movistar and Vodafone. Orange is working on
developing mobile VoIP in IMS for the LTE.


Infrastructure sharing
 The Group is very active in finding better infrastructure sharing solutions, to reduce costs and
to minimize the environmental impact of its business activity.
 Passive infrastructures of radio sites (GSM and UMTS) have been shared for a long time and
this applies to 40% of Orange’s rural sites in France, for example.
 RAN sharing, between Orange and Vodafone in Spain, or between Orange and T-Mobile in
Poland, is a successful example of active infrastructure sharing.
 The objective of the Group is to have 35% of its mobile radio sites shared by 2015.
 Other forms of infrastructure sharing are also being implemented, for example with the pooling
of service platforms among various countries where the Group is present.

BACKGROUND FOR SPOKEPEOPLE ONLY

Network Capacity

Challenges for the telecommunications sector

There are two issues:
- quality of service: offering good quality of service to customers using data services
during the rapid growth phase we are currently seeing;
- cost-effectiveness: keeping necessary investments under control since the growth in
data volume is much more important than the increase in associated revenues.

maintaining quality of service
Mobile networks have achieved a very high level of quality and it is a challenge for operators to
maintain this quality with today’s exponential growth in data traffic.

controlling rollout costs
All new services are “network capacity” guzzlers which means that operators will have to find
the best possible balance between costs associated with increasing network capacity and the
revenues they will draw from new usages.

Positioning of France Telecom-Orange

The mobile data traffic continued its growth in 2011, following the strong growth in bandwidth
consumption in previous years. Traffic growth in European countries of the Group:
- 2008: traffic multiplied by 5,
- 2009 and 2010: traffic multiplied by
more than 2,
- 2011: traffic multiplied by around
1.7.
This increase is the result of the
widespread use of “data-centric”
devices and the success of associated
data packages, it is in Western Europe
mainly driven by the adoption of
smartphones.

traffic growth (base 100 in 2007)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2007 2008 2009 2010 2011
Updated February 2013


As a comparison, the volume of transmitted data by a customer in France using a 2G mobile
phone is several megabytes per month; the volume of a person using a smartphone or a PC
equipped with a USB key is several hundred megabytes per month, or even several gigabytes
per month.


Rollouts – ongoing tests
 To prepare for expansion over the next several years, various activities have already been launched
to improve network capacity:
- deployment of HSPA+ technology to improve the capacity of the radio networks. We
continued to roll out HSPA+ in the different European countries in 2012 ;
- refarming of the GSM band (i.e. starting 3G rollout in the 900 MHz GSM band);
- deployment of LTE network
- preparation of allocation of new frequency bands (bands of 800 MHz and 2.6 GHz) that will
be used with the LTE technology and that will increase the bandwidth of our mobile
network.
 In addition, other means to improve the customer’s experience at home and at work are currently
being explored.
 In the future, LTE-Advanced will provide additional efficiency and increase the performance and
capacity of the network.




3G+

what is 3G/3G+
To make it easier to understand and compare services and technologies, mobile systems have
been categorized into generations:
- The first generation (1G) comprises analog systems (AMPS in the US, TACS in
England, NMT in the Nordic countries, Radiocom 2000 in France, and so on). These
systems are no longer used today.
- The second generation (2G) consists of the first digital mobile systems, primarily GSM
(technology found in more than 80 percent of the terminals used worldwide, with
networks in almost all countries), as well as cdma technologies (which were used
primarily in the US, South Korea, and Japan) and PDC (Japanese system).
- The third generation (3G) consists of digital mobile voice and data systems that
support high data transmission rates. The primary technology is UMTS but cdma is
also evolving and is being used by several operators.
- The fourth generation (4G) enjoys a global consensus on LTE technology.

This classification system is not rigid; for example, EDGE is an evolution of GSM and a
technology that falls between 2G and 3G in terms of technical performance and supported
services.

As these systems continue to evolve by including new functions and featuring improved
performance, one should make a distinction between these different developments.

In the GSM class, the following are noteworthy in chronological order:
- GSM, designed initially to provide voice services, SMS (texting), and data in a circuit
mode (like low-speed Internet, but with a much slower speed of 9.6 kbit/s).
- GPRS, an add-on to GSM, to offer data services in a packet-mode (therefore less
expensive for surfing the Internet) with speeds of a few dozen kbit/s.
- EDGE, the latest evolution of the GSM, to increase the data speed and support
services exceeding 100 kbit/s.
Updated February 2013



In the 3G class (UMTS), the following are noteworthy in chronological order:
- UMTS R99, also known as 3G, which is a format used in initial rollouts that in practice
was limited to a speed of 384 kbit/s.
- 3G+, which consists of two different functionalities:
o HSDPA, which increases performance (average and maximum speeds for a
customer) for downloads (data that the customer receives from the network,
e.g., video), as well as the network response time (latency). HSDPA consists
of several stages (HSPDA 3.6, HSPAD7.2, and HSPDA14.4)
o HSUPA improves performance for uploads (data that the customer sends
toward the network, e.g., sending an e-mail)
HSPA is a combination of the two.
- HSPA+, which will be the final evolution of 3G before LTE (similar to how EDGE was
the final evolution of GSM), comprises also various stages (HSPA+ 21, HSPA+42,
HSPA+ 84), which once again improves technical performance and maximum speeds
for customers. This technology was rolled out in all Orange European countries in
2012.

Challenges for the telecommunications sector
Given the success of data services using 3G (mobile TV, sending/receiving e-mail, surfing the
Web, Orange World, downloadable applications, Business Everywhere, Internet Everywhere,
etc.), it is essential that operators can offer their customers suitable speeds along with
widespread coverage and the ability to handle this traffic at a low cost.
The objective of HSDPA and HSUPA technologies is to respond to these two needs by
increasing the data service bandwidth for customers and increasing the capacity of mobile
networks.

Positioning of France Telecom-Orange
The Group’s positioning seeks to give customers a consistent experience across all their uses
rather than very high performance accessible in only a very localized manner. Thus, the Group
is placing the emphasis on functionalities that allow the greatest number of people to benefit
from the best possible performance. In concrete terms, this means that we promote a medium
speed experienced by customers rather than a maximum speed that can only be obtained in
conditions when especially close to the signal transmission site.

For example, in theory HSPA 14.4 offers a speed of 14.4 Mbit/s, but this speed can only be
obtained under very particular conditions not found in the real world (very close to the signal
transmission site, no neighboring signal transmission site, etc). The speed as perceived by
customers working with HSPA 14.4 is realistically between 1 and 6 Mbit/s in general.




LTE

LTE brings:
 higher speeds for users: theoretical maximum speeds would rise from 14.4 Mb/s with HSPA 14.4
technology to over 150 Mb/s (for downloads on 20 MHz channels), in optimum radio conditions. In
practice, with bandwidth shared among the users at any one time and as there are not always
optimum radio conditions, meaning that actual data bandwidth available to users would rise from 1
to 6 Mb/s in HSPA 14.4 to reach around 1 to 35 Mb/s with LTE,
 far greater spectral efficiency (bandwidth available per MHz), meaning higher data transmission
capacity on a given spectrum resource, so improving network capacity,
 lower latency, that is reaction time at least halved between HSPA technology and LTE for each
network demand, a considerable ergonomic improvement in particular for real-time services,
Updated February 2013


 an “always available” capacity, allowing end users to register almost instantly on the network to
access services,
 better coverage with higher bandwidth on cell borders,
 a simpler architecture: there will be an entirely IP backbone, optimised for data, leading to less
maintenance and hence lower costs,
 simplified operation through SON features (Self Optimisation Network), allowing (at full maturity) an
improvement in network quality with lower operational costs and better quality of service for users.
SON technology also has features allowing electricity consumption to be adjusted in real time to
the minimum required, a real step forward towards a more environmentally-friendly network.
We do not foresee any major application (killer application) for LTE technology. But these improvements
will give users a richer and more fluid experience of existing services (e.g. faster web browsing,
smoother videos in higher definition, ultra-fast downloads of big documents and applications…, shorter
connection and reaction times in games or online applications) and new services (mobile cloud, cloud
gaming, videochat, enhanced reality, etc.).

LTE will be the technology chosen to further improve mobile data speed and capacity, and to optimise
costs with the coming frequency bands (800 MHz and 2,6 GHz) that are currently being allocated in the
different European countries.
The Group’s strategy is to get everything ready to go for LTE to be used on commercial networks,
making sure everything is in order for a successful launch as from startup: technological maturity,
equipment stability, availability of terminals, everything working properly between network and terminal,
operating processes in place, etc. The Group has therefore run advanced tests to master the
technology and prepare the adaptation of its engineering rules and operational processes. Moreover
the Group is active in a number of forums (3GPP, GSMA, NGMN, etc.) to ensure LTE performance and
interoperability of LTE equipment.

The Group’s objective is to roll out, by 2015, 4G/LTE networks in all the European countries in which it
is present.

The Group has started LTE network rollout in 2011 in some Orange countries with first commercial
launches in France, UK, Moldova,Romania, Luxembourg, Mauritius and Dominicana in 2012. In the
meantime, to better serve our customers, we are improving the performance of our HSPA/HSPA+
networks.

Technical rollouts have started in 2012 in Belgium, in Spain (Valencia, Barcelona)



Positioning of competitors
LTE is the technology chosen by all GSM/UMTS operators and to which they will all be moving after
HSPA+. Practically all cdma operators have also chosen LTE for ultra-fast mobile broadband.




Infrastructure sharing

Challenges for the telecommunications sector
Many operators around the world are developing access network sharing initiatives. The number of
projects announced has more than trebled in the past 5 years, going from 11 in 2007 to 36 in 2011.
Most of the initiatives relate to passive infrastructure sharing and RAN sharing.

Updated February 2013


In Europe, all the operators are particularly active in signing network sharing agreements (especially
active infrastructures), e.g.:
 Passive infrastructure sharing: pan-European site sharing agreement between Vodafone and
Telefonica (rolled out in 2009 in Germany, Ireland and Spain); various agreements between
Vodafone and Wind and then TIM in Italy (August and November 2009);
 RAN sharing: 3G RAN sharing agreements in Sweden between Tele2 and Telia (March 2001),
and in Spain between Orange and Vodafone (2007);
 National roaming: national roaming agreements have been signed in Norway (between Norway
Network and Telenor in April 2008) and in Spain (between Telefonica and Yoigo in November
2008).

In emerging countries, network sharing is giving rise to large-scale operator activity, but is mainly
happening with passive infrastructures: operators are transferring their passive sites and equipment to
third-party companies (Tower Co.) which are responsible for managing rationalisation and pooling of
sites. In Africa for example, 3 major Tower Companies share the market:
 Helios Tower: agreements have been signed with Tigo in Ghana (January 2010) and the
Democratic Republic of Congo (January 2011);
 American Towers: agreements have been signed with MTN in Ghana (December 2011) and in
Uganda (December 2011); and with Cell C in South Africa (November 2010);
 Eaton Towers: agreements have been signed with Vodafone in Ghana (October 2010) and
Orange in Uganda (February 2012).

If the third-party companies do not wish to participate in these passive infrastructures transfer
operations, the operators try to come together and create JVs, as has been done in Kenya (Safaricom
and Orange in June 2011), and in particular in India (between Vodafone, Airtel and Idea in December
2007 to create Indus Towers) where the passive infrastructure sharing model has become the market
standard.

In general, we can observe that the progress level of network sharing projects varies greatly between
countries: it is most advanced in Spain, Italy, Sweden, Ghana and also Uganda, and is starting to
develop a bit more hesitantly elsewhere, according to the strategy of the operators in place (e.g. Tigo
or Vodafone, who are particularly proactive).


Positioning of France Telecom-Orange
 Network sharing is primarily a matter of local opportunities, according to the local economic
and competitive context.
 France Telecom-Orange is very active in seeking out the best infrastructure sharing solutions,
both to reduce costs and minimise the environmental impact of our business.
 The Group’s objective is to have 35% shared radio sites by 2015.
 Sharing of passive infrastructures of radio sites (GSM and UMTS) is a long-standing practice,
involving for example 40 % of Orange’s rural sites in France.
 RAN sharing between Orange and Vodafone in Spain, and between Orange and T-Mobile in
Poland, are among the most advanced examples of active infrastructure sharing.


Rollouts – ongoing tests

in France
The Group has until now advocated the principle of competition via infrastructures in most of the
country, a principle which has been applied to the extension of 2G and 3G coverage.

Updated February 2013


However, in low-density areas, sharing of passive installations is in wide use (on a commercial basis,
with no involvement by the regulator): 40 % of France Telecom-Orange sites in rural areas are subject
to infrastructure sharing.

Very low-density areas are covered by specific programmes developed during the roll-out of our 2G
and 3G networks:
 On our 2G network: national roaming “white areas” programme, representing approx. 3000
parishes and 2250 radio sites;
 On our 3G network: an agreement was signed between the mobile operators in July 2010 to
implement a network sharing solution (RAN sharing) on 2550 radio sites.

in Belgium
Mobistar and KPN Group Belgium (BASE s.a.) signed an agreement in October 2009 to cooperate in
the field of purchase and construction of new sites excluding radio infrastructure (sharing pylons,
masts, cables, public utility infrastructures, security equipment and transmission systems). An extension
to this agreement is under negotiation.

in Spain
The 3G roll-out agreement between Orange and Vodafone is one of the most advanced examples of
active installation sharing (RAN sharing). At the end of 2011, the programme had advanced to 90%,
with the two operators sharing more than 4300 base stations. Savings of up to 40% per site are
expected by the end of this project, generating cumulative savings of 160 million euros over the period
2007-2011 (capex+opex). An extension to this agreement to 2G is under negotiation.

in Poland
At the end of 2011, TP Group and PTC created a service provision JV (with no asset pooling),
Networks!, to share their 3G networks. Networks! Is in the process of merging the 2 radio networks
(from 6000-7000 sites per operator to around 10,000 sites for the JV), and is responsible for
developing and operating this joint network. The predicted cumulative savings are 320 million euros
(capex+opex) over the period 2011-2015.

in the UK
The creation of the JV between Orange and T-Mobile (Everything Everywhere) has led to a
rationalisation of sites and base stations, and an integration of the networks. This integration will
generate savings of £42m (in 2011), and up to £189m per year from 2015.

in Africa
The Beethoven partnership project with tower companies was sealed by the signature in Uganda of a
contract with Eaton Tower. This project should improve the EBITDA to $24m over 10 years (reduced
annual operating costs), and generate cumulative Capex gains over the same period by $32m. Finally,
the transfer of 285 Orange sites to Eaton Tower should enable this net debt to be reduced by $20m.
The negotiations are continuing in other countries (e.g.: Kenya, Ivory Coast).