Nationalised service (1878–1980s) In 1792, under the
French Revolution, the first communication network was developed to enable the rapid transmission of information in a warring and unsafe country. That was the optical
telegraphy network of
Claude Chappe. In 1878, after the invention of the electrical telegraph and then the invention of the
telephone, the French State created a
Ministry of Posts and Telegraphs. Telephone services were nationalised and added to the ministry in 1889. However, it was not until 1923 that the second 'T' (for 'telephones') appeared and the department of P&T (Posts and Telegraphs) became PTT. In 1941, a General Direction of Telecommunications was created within this ministry. Then, in 1944, the National Centre of Telecommunications Studies (CNET) was created to develop the telecommunications industry in France. In the 1970s, France attempted to make up for its delay in developing communications infrastructure, compared to other countries, by launching the programme "Delta LP" (increasing the main lines). It was at that time that the majority of the local loop was built (that is all the cables linking the users to the operator). Moreover, with the help of French manufacturers, digital switching --
Minitel and the
GSM standard—were invented by engineers and CNET researchers. In 1982, Telecom introduced
Minitel online ordering for its customers.
Creation of France Télécom (1988–1997) Until 1988, France Télécom was known as the
direction générale des Télécommunications, a division of the
Ministry of Posts and Telecommunications. It became autonomous in 1990. This was in response to a European directive, aimed at making competition mandatory in public services from 1 January 1998. The 2 July 1990 Bill changed France Télécom into an operator of public law, with Marcel Roulet as the first chairman. Since then, the company has had a separate body corporate from the State and acquired financial autonomy. It was privatised by
Lionel Jospin's
Plural Left government starting on 1 January 1998. The
French government, both directly and through its
holding company ERAP, continues to hold a stake of almost 27% in the company. In addition, the French government has a role in naming the CEO. In September 1995,
Michel Bon was appointed to run France Télécom Group.
'Roaring Nineties' (1997–2000) In 1997, the capital of the new public company was successfully floated whereas the
dot-com bubble phenomenon made the
stock exchanges bullish. A second share offering occurred in 1998. France Télécom got behind in the internationalisation launched by its international competitors such as
Vodafone, thus, it started looking for targets at the highest
speculation rate of the dot-com bubble. Moreover, its alliance with
Deutsche Telekom based on a reciprocal capital contribution of 2% broke off when
Deutsche Telekom announced that they were planning to do business with
Telecom Italia without letting the French know; even if this project ended up failing.
Acquisition of Orange and privatisation • init ImageSize = width:1000 height:250 PlotArea = left:95 right:40 bottom:20 top:20 TimeAxis = orientation:horizontal format:mm/yyyy AlignBars = late DateFormat = dd/mm/yyyy Period = from:31/12/1989 till:01/06/2011 • colors Colors = id:canvas value:gray(0.95) # background for whole image id:bars value:gray(0.95) # background for bars id:grid1 value:rgb(0.4,0.6,0.4) # major grid id:grid2 value:rgb(0.80,0.80,1) # minor grid id:gray value:gray(0.6) # for colophon id:gray2 value:gray(0.5) # for text BackgroundColors = canvas:canvas bars:bars ScaleMajor = gridcolor:grid1 unit:year increment:1 start:31/12/1989 ScaleMinor = gridcolor:grid2 unit:month increment:3 start:31/12/1989 • Bar BarData = bar:Nom text:Name bar:Actionnaires text:Shareholders bar:Faits text:Key facts • plot PlotData= bar:Nom from:start till:01/04/1994 color:redorange text:"Microtel Communications Ltd" align:center align:center width:45 bar:Nom from:01/04/1994 till:01/08/2000 color:orange text:"Orange plc" align:center align:center width:45 bar:Nom from:01/08/2000 till:end color:redorange text:"Orange SA" align:center align:center width:45 bar:Actionnaires from:start till:01/07/1991 color:redorange text:"Microtel" align:center width:45 bar:Actionnaires from:01/07/1991 till:01/01/1996 color:orange text:"Hutchison Whampoa" align:center width:45 bar:Actionnaires from:01/01/1996 till:01/09/1999 color:redorange text:"Hutchison Whampoa ~and ~British Aerospace" align:center width:45 bar:Actionnaires from:01/09/1999 till:01/11/1999 color:orange text:"~Mannesmann AG" align:center width:45 bar:Actionnaires from:01/11/1999 till:01/08/2000 color:redorange text:"Vodafone" align:center width:45 bar:Actionnaires from:01/08/2000 till:end color:orange text:"France Télécom" align:center width:45 bar:Faits from:13/02/2001 till:13/02/2001 color:black text:"French stock exchange introdution" width:50 fontsize:M bar:Faits from:01/06/2001 till:01/06/2001 color:black text:"~ ~Itinéris, Ola and ~Mobicarte become Orange" width:50 fontsize:M bar:Faits from:01/06/2006 till:01/06/2006 color:black text:"Wanadoo becomes Orange" width:50 fontsize:M bar:Faits from:21/11/2003 till:21/11/2003 color:black text:"~Exits Paris Stock Exchange" width:50 fontsize:M bar:Faits from:01/11/2008 till:01/11/2008 color:black text:"~Orange Cinéma Séries ~and Orange Sport ~launch" width:50 fontsize:M In July 1991, Hutchison Telecom, a UK subsidiary of the Hong Kong-based conglomerate
Hutchison Whampoa, acquired a controlling stake in Microtel Communications Ltd, which by then had acquired a licence to develop a mobile network in the United Kingdom. In August 2000, France Télécom bought Orange plc from Vodafone for a total estimated cost of €39.7 billion. At the time, France Télécom also bought stakes in several other international firms (GlobalOne,
Equant, Internet Telecom,
Freeserve, EresMas,
NTL and Mobilcom), of which some have since been sold back. Through this process, France Télécom became the fourth-biggest global operator. The mobile telephone operations of Orange plc were merged with the majority of the mobile operations of France Télécom, forming the new group Orange S.A. On 13 February 2001, Orange S.A. was listed on the
Euronext Paris stock exchange with an
initial public offering of €95 per share, with a secondary listing in London. the benchmark stock market index of the top 40 French companies in terms of
market capitalisation. On 2 October 2002, the CEO,
Thierry Breton was given the task of turning the company around after the company became crippled by debt following the drop of the company's stock price. On 30 September 2002, the company's stock price was €6.94, down from €219 on 2 March 2000. France Télécom was the second most indebted company worldwide in terms of short-term liabilities. The company obtained €15 billion of debt adjustment that needed to be borne by banks and investors, another €15 billion as a capital increase from the French State since it was still the majority shareholder, and an additional 15bn in cash from internal savings. On 25 February 2005, Thierry Breton was appointed
Minister of Finance and Industry and
Didier Lombard, who had been head of the firm's new technologies division, replaced him as CEO.
NeXT scheme and rebranding to Orange (2006–present) The NeXT scheme was the recovery plan for France Télécom which aimed at, among other things, reducing costs, especially wage costs, carrying on a converging policy for its products and services, and grouping together all the brands under a single brand, except for the activities dealing with fixed-line telephone which would stay under the designation 'France Télécom'. Consequently, this led to the disappearance of a number of brands. From 1 June 2006, France Télécom tried to commercialise all its products under a single worldwide brand, becoming the sole brand of the France Telecom group for Internet, television and mobile services in the majority of countries in which Orange operated.
Orange Business Services became the brand for all its business services offerings worldwide, replacing the Equant brand. In June 2007, Orange and
Mid Europa Partners acquired Austrian mobile network company One, re-branding it as
Orange Austria. In 2012, it was sold to
Hutchison 3G and the Orange Austria brand was terminated. In November 2008, Orange launched five Orange Cinema Series channels. To do so, Orange bought the exclusive rights from
Warner Bros. In 2008, Orange was given permission from
Apple to sell the
iPhone in Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia, Switzerland and Orange's African markets. On 28 October 2009, Orange changed the name of its Luxembourgish telecommunication company VOXMobile to Orange. On 5 November 2009,
Orange Armenia launched telecommunication services in
Armenia. On 11 December 2009, Egypt's regulator approved an offer from a unit of France Telecom (Orange) to buy Mobinil. In 2010, Orange's CEO, Didier Lombard, was replaced by Stéphane Richard. On 2 March 2012,
Didier Lombard, who remained special advisor to
Stéphane Richard, left the company. The deal closed on 3 January 2013, and the Orange brand was phased out on 19 August 2013, when its operations were merged into 3. In March 2012, France Télécom bought 93.9% of
Mobinil, an Egyptian mobile operator, from
Naguib Sawiris's Orascom Telecom Media and Technology (OTMT) in an effort to double its revenue in MENA by 2015. On 28 May 2013 at the Annual Shareholders' Meeting, shareholders approved changing the name of the group to Orange S.A. This became effective on 1 July 2013. In September 2014, Orange agreed a deal to acquire
Spanish firm
Jazztel for a fee of around €3.4 billion. As of October 2018, Orange has teamed up with
Google in order to install a
transatlantic undersea cable,
Dunant, to share data between the
United States and
France at faster speeds. Planned to begin operation in 2020, the fibre-based cable has a design capacity of 250 terabits per second (Tbit/s) and will span approximately 6600
kilometres in length. In July 2020, Orange launched a satellite-based home broadband service utilising the
Eutelsat Konnect satellite. == Shareholders ==