GOOGLE TRANSLATION
It is said that consumption is distributed in France. Did you notice?
We are in a somewhat atypical sector. In telecoms, regardless of macroeconomic conditions, we are driven by strong growth in usage, that does not slow. For example, Orange has just passed the 5 million 4G customers in France and the fiber creates a craze of our customers. Overall, our networks, data exchanges continue to grow with an almost doubling each year of the volume of "data" on the mobile. We are driven by the digitization of society. This applies to individuals and businesses. And this is true in all our markets. In Europe as in Africa, where over 10% of our customers are already equipped with smartphones.
This autumn promises to be good?
Yes, thanks to our strategic choices: priority to quality, innovation, service. We record many positive signs in Europe - for example in Spain and Belgium - in the business sector and, of course, France. But in the medium term, the major challenges are not lacking, of European regulation must be deeply revisit the battle of titans between "telcos" and Web giants for digital services of the future through cybersecurity.
Is that because there is more price war in France?
There is perhaps more a war of prices as intensively as when the arrival of Free on the mobile, but we switched to a war of promotions. At Orange, we do not intend to participate in this bidding. Today, we are proving that we can win customers in the fixed and in the mobile without massacring the price. For this, we rely on the quality of our network and our service. With 4G and fiber, we get even increase our revenue per subscriber 3 euros on average in the mobile and fixed in the 5 euros. France is the most competitive market in Europe. We achieved price levels as now the client focuses on longer rates but also on the network and service. Competition remains fierce in our country.
Your competitors massively lowered their costs. Can you escape this trend?
We have a history to be taken into account and a model that we assume. This legacy would be a weight that if we stayed idly. But we are not immobile. We have demonstrated our ability to reorganize the past two or three years. Given the age structure of the group, we will not replace all retirements. And we adapt the operation of the company depending on changes in the workforce. Overall, efforts at Orange helped reduce costs by 1 billion euros in 2014.
This low cost of research throughout the economy does worry you?
This is a very European and especially French contemporary disease. The consumerist ideology has wreaked havoc and pushes to move permanently to the lowest bidder. We pay out the price of a system that is struggling to reform. Maintaining our social system is becoming more and more expensive to make and still some purchasing power to the French in a context of higher taxes and property prices, the only political solution, both left and Right, is to put pressure on companies to lower their prices. Seen in telecoms, but also in other sectors such as agriculture. And, of course, at an end, the pressure affects the employees or producers. There is a French obsession with the constant search of the "cheaper". Since 2011, telecoms have made more than 7 billion euros of purchasing power to the French. Mobile prices fell by 40%. Despite this, it remains a form of defiance against the companies, we deplore the low margins one day to stigmatize indecent profits the next day! Yet without profits, a company can not invest.
Is a consolidation in telecoms, in your opinion, inevitable?
The consolidation movement was launched in all major European countries ... except in France. There is a French exception. Today, consolidation is not on the agenda but it will perhaps reappear next year, after the sale of new frequencies for 4G. We are the European country in which operators' margins are the lowest. If Orange, which is based on solid foundations, is the one who least need of consolidation, the situation of each of our competitors raises questions. Numericable, SFR loses customers, Bouygues Telecom wins, but remains tight financially, and Free must invest heavily in its network.
Do you believe more consolidation at the European level?
We are at the first stage, that of the national consolidation so-called "in-market". Come one second international stage, "cross border". This will require that there be some signs that we are moving well towards a single European telecoms market that I call my vows. We can not have lasting 28 laws, 28 28 regulators and competition authorities in Europe. We play in national markets when the Web giants play on a world stage. When the prospect of the single market will be clear, operators will come into motion and Orange will aim to play a role in this consolidation. Vodafone and Deutsche Telekom, we are already a major player now in several European markets. We are not starting from zero. Our goal in the next decade is to continue to walk on two legs, being an operator that counts Europe as in Africa, where we realize 11% of our turnover and where growth is accelerating.
The state is your capital. Is it not an obstacle to your development?
On the contrary. The state is a stable and long-term shareholder. This protects us against any attempted hostile takeover. And so far, the state has always behaved in benevolent and open shareholder. There has never been an obstacle to our growth. I am therefore very favorable for a permanent state presence.
Several French groups came under foreign flags in recent months. This will he worry?
I'm a little embarrassed to answer this question. Personally, I have a patriotic fiber but Orange bought companies abroad. The French groups can not only be predators. And we must not exaggerate. France still has many champions in most economic sectors.
What do you think the emergence of a new champion in telecoms, the group led by Patrick Drahi?
His rise was meteoric. I have admiration for the audacity with the group and demonstrate his boss. They take advantage of a specific context in which the debt is very cheap. But it must be recognized that such a course is rare in France. Now Altice still has much to prove. Its leaders must give coherence to what remains for the moment an asset collection. And then they will have to demonstrate that they have an industrial strategy beyond "cost cutting". Cost reduction is not a strategy.
But the dynamism of Altice not he mediocrity major industry?
Our situations are not comparable. And do not forget that this frenzy of acquisitions at a price. In absolute terms, the debt of Altice is higher than that of Orange. We have already given in this area in the early 2000s when our debt was 70 billion euros. I'd rather be in our position than that of Altice.
The development patrick drahi media brings back the day the question of convergence ...
I personally believe that this is an asset diversification more than a form of vertical integration. That said, they are not the only ones to follow this strategy. In the UK, BT also develops in the content. But the complementarity of content and pipes is an old sea snake I know that telecom operators are deemed Rich. - Orange is 12 billion euros of EBITDA per year - and we are very efficient in the content distribution. But the Competition Authority and media groups are very vigilant about the operating conditions of which we could be content owners. Which often makes this difficult to make profitable investments. This is why I prefer Orange invest in the deployment of its network.
The United States dominate the digital world. Should we resolve to live in a world which is increasingly less control rules?
First, we must recognize that the strength of the American model is under attack by a few Chinese actors. But France is not lagging behind. Innovation is very dynamic in the digital or health, for example. Even more so than in other European countries. That said, it is true that we find it hard to grow our startups. We lack an ecosystem likely to get them through the stages of their development. For us to create because we are only at the beginning of the digital revolution.
Do you share the emotion aroused by the financial terms of the departure of Michel Combes Alcatel-Lucent?
I do not want to customize the debate around the case of Michel Combes. But I understand the public's misunderstanding and I deeply regret that rapacious boss image comes regularly pollute our word. For my part, I set a rule never to ask for a compensation that might be controversial. That's why I have no stock options, retirement hat or golden parachute. You can not lead a group of Orange size if it is not exemplary. Of course, it remains important to reward performance and motivate those willing to take responsibility.