Suppliers to France Telecom (FT) Take Note. Be prepared! France Telecom is working on a new set of objectives and strategies that will affect all its suppliers. The full ‘Ambition 2008’ plan will only be unveiled in June 2006 but certain aspects are already known.
The plan is divided into strategies for revenue growth on the one side and financial targets and cash use on the other. While the financial targets will mainly affect the internal organisation of the group, the strategies for revenue growth will decide which suppliers FT chooses for the longer term and how they work together.
An underlying premise of ’Ambition 2008’ is the need to become an integrated operator. By June, the group will unveil the full list of its new convergent services that it hopes will ensure customer loyalty and pricing power. Much of the new services will be based around the ’Livebox’. This will enable more applications such as the launch of HD TV on DSL which, FT insists, competitors will be unable to replicate.
The other underlying premise is that fixed-mobile convergence will happen. Although FT recognises this would hamper short term revenue for mobile activity, it believes it is necessary to increase the “stickiness” of fixed line customers.
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