driving innovation: meeting the needs of an ever changing world Alexandre Pébereau EVP International Carriers Orange Moscow, September 2014

all-around wholesaler with solid retail expertise

Orange international connectivity

450 000 km of submarine cables

Voice Internet

City to City

key figures

International Carriers

#2 in the

wholesale market

platforms Paris, New York, Moscow, Miami, Hong Kong, Madrid, Warsaw

1000 clients

recognised with 3 awards at the Global Capacity

30 billion minutes of voice traffic in 2013 direct

connections with 390 operators Mobile • IPX • VoIP • 4G LTE

Signallin

€1.6 billion revenues in 2013

+7% data revenue

+5% voice revenue

Tier 1 Internet operator

bandwidth 125 PoPs

well-established presence and strong infrastructure

8500 km backbone network from Moscow to Saint-Peterburg, Privolzhsky, Uralsky and South Federal regions

+50 years presence

a network spanning 36+ regions

sales offices in 17 major cities

7500 km city access network

1000 satellite access points

30+ own datacenters in Russia

innovation: meeting the needs of an ever changing world

a dynamic player making the IP promise happen

bring secure, intelligent and value-

added network capabilities to tackle new and sophisticated customer demands

maintain robust, efficient networks to manage soaring flow of data

a brand new world is shaping up and telcos will have a bigger role to play

Russia embraces the mobile revolution transcontinental cables – 100 Gbs

the shift to mobile everywhere is happening fast

4G rolling out quickly across markets

50 billion connected

objects by 2020

$300 billion will be generated in revenue by 2020

by the Internet of Things

looking at the world through the lens of mobility

digital omnivores are here!

- higher speed - bigger capacity - lower latency

new opportunities and challenges & increased revenue openings

higher quality of service with IPX

telco world today

consolidation and joint ventures movements of concentration tougher & more complicated regulation

hurdles and challenges push for innovative solutions

what it means for telcos:

WANTED

innovate to build a smart future

sharp vision

smart strategies agility smart approach

enhance customer service bring smart practices to the market

re-invent business models to grow revenues

preparing for 5G

ensure the development of next

generation networks over IPX

enable the full deployment of 4G

prepare 5G for the future landscape

innovation 7 billion

SIMs today

3 billion people yet to be

connected

eliminate the digital divide

Orange wholesale innovation

IPX Cloud Services a single plug for all wholesale exchanges

continuously aspiring to provide added value

Voice over LTE IMS Network to Network Interconnect

Messaging push SMS hubs for control and transfer of messages

+ 29 % CAGR

Source: Cisco VNI – Visual Networking Index

TB = Terabyte (1000 GB) ; PB = Petabyte (1000 TB) ; EB = Exabyte (1000 PB)

x 3 CAGR +23%

x 4

Internet usages grow fast and are still expected to boom, driven by video contents

Internet trafic is booming

Increasing traffic concentration with few content providers

Source: Deepfiled.net

Cumulative distribution

10 %

20 %

30 %

40 %

50 %

60 %

70 %

35 150 300 Number of websites

2013 2009

2007

The need for evolution in the Internet Business Model

$?

INTERNET USERS

CONTENT PROVIDERS TELCOS

thank you!