France Telecom R&DFar aheadand close to you: France Telecom R&D Far ahead and close to you


France Telecom today: France Telecom today


A global group: Present on 5 continents More than 113 million customers worldwide* Global telecommunications solutions through strong brands leaders on their markets : wireless, Internet, fixed-line, multinationals solutions... A global group * In companies controlled on 30/06/2003 Who are we ?


Market positioning: Market positioning Mobile phone leader in France and UK with 45.6 million customers worldwide * Internet access leader in France and UK and N°. 2 in Europe with 8.8 active clients* (include 1.8 million broadband access customers) Fixed services leader in France and among the European leaders with 49.7 million customers worldwide* Worldwide leader in IP and data services for multinationals (*) end June, 2003 Who are we ?


Financial results of the Group: Results in the first six months of 2003* Turnover: 22.9 billion euros (+1,7%) EBITDA: 8.5 billion euros (+23.5%) Operating results: 4.6 billion euros (+46%) Net income – Group share: 2.5 billion euros * historical data Financial results of the Group Significant imporvement in profitability in 1st half of 2003


Financial results of the Group: 2002 Annual Results* Consolidated turnover: 46.6 billion euros (+8.4%) EBITDA: 14.9 billion euros (+21%) Operating results: 6.8 billion euros (+30.9%) Net income – Group share: -20.7 billion euros * données pro forma Financial results of the Group


Slide7: Orange Wanadoo Equant Fixed services & distribution Networks Our activities What we do


France Telecom organization: France Telecom organization


France Telecom R&D(ex CNET)Far aheadand close to you: France Telecom R&D (ex CNET) Far ahead and close to you


A leader in telecom R&D: A leader in telecom R&D Who we are More than 3,000 researchers and engineers 14 sites across the world Some 600 million euros dedicated to R&D More than 6,500 patents in France and abroad approximately 15 start-ups created


Laboratories on 3 continents: Laboratories on 3 continents Who we are 1 center in San Francisco 8 centers in France 1 center in Tokyo 1 center in London 1 center in Boston 1 center at TPSA A team in Beijing An office in New Delhi An office in Seoul


Cultivating innovation : 2003: WiFi, Giga-Eternet, SMS on fixed phones, TV over ADSL… 2002: eConf, mobile VPN 2001: NABN, Le Messager, geolocalisation 2000: first WAP services, first UMTS and NGN tests 1999: Very High Speed Internet 1997: Prepaid mobile cards (Mobicarte) 1997: high speed ADSL Internet trials 1993: first digital TV transmission 1987: launch of ISDN 1982: launch of GSM 1981: test of the Télétel et Minitel online services 1978: inauguration of the Transpac data network 1960: first satellite TV braodcast 1953: first TV broadcast by radio (with England) Cultivating innovation Who we are


Our goals: Satisfy all clients Deliver effective innovations to all intra-Group clients Develop and leverage our intellectual property Increase and enhance our patent portfolio Achieve operational excellence Be at the world’s top level for R&D capabilities and processes Our goals Who we are


Three complementary missions: Three complementary missions Our missions Imagine the unthinkable Improve the existing Prepare the impossible


The Research: A Scientific Council « Worldclass » research poles, such as: Network modelling, optimisation and dimensioning Technologies for digital and mobile communications Speech and sound technologies The Research Skills domains Usages & Ergonomics Security of information networks Mobile terminals and smart objects of the future


13 Skills Centres: Image Security E-commerce Messaging services Customer Intelligence IPv6 WiFi Bluetooth Voice services Terminals 13 Skills Centres Skills domains Gateway & domestic LAN Web services and Intermediation GigaEthernet Electromagnetism


R&D in every offering : Mobile « Orange Cities » 3rd generation (2004)… Internet WiFi, Alapage search engine (2003), Wanadoo Visio (2004)… Fixed-line telephony Wireline SMS, « Ma Ligne » TV, « Ma Ligne » Visio (2003-2004) Mobile / Internet Unified fixed-mobile mail service Mobile Internet for companies, Instant Messaging etc. Networks MMS Exchange… R&D in every offering In practice France Telecom R&D created 70% of the products & services sold by France Telecom


Prepare the services of tomorrow: Communicating clothes Remote diagnostic and surgical strategy with the Argonaute 3D operation Clones in a network Perfumed Internet Electronic voting E-Tourism Prepare the services of tomorrow In practice


Slide19: Collaborative R&D


Networking and partnerships: Networking and partnerships Industrial agreements around the world Close ties with the international research community Partnerships with leading universities Active participation in defining standards Collaborative R&D


Industrial partnerships: Industrial partnerships With global industrial groups Telecom sector: Cisco, Nokia, Alcatel, Microsoft, Ericsson, Motorola, etc. Clients: AXA, Renault, Paris public transport, Disney etc. and highly innovative companies Juniper, Highdeal, Netcelo, Netcentrex, Telisma, Wokup, etc. Our goal: to jointly develop highly innovative products, protocols and services Collaborative R&D


Participation in standardization procedures: Participation in standardization procedures Promoting international standards Mobile standards, IP VPN services, xDSL etc. Cooperation with international bodies such as IETF, ETSI, ITU and 3GPP Regular sharing of expertise Participation in international fora Collaborative R&D


Close ties with the research community: Close ties with the research community France Telecom R&D is deeply involved in international research programs European R&D Framework Program Eurescom French national networks (RNRT, RNTL, etc.) Eureka projects Scientific Council Scientific Council including leading international members of the research community Collaborative R&D


Partnerships with leading universities: Partnerships with leading universities Various types of partnerships With the best universities and laboratories in France With foreign universities on three continents 10 key partners around the world Europe: INRIA (France), University of Delft (The Netherlands), Ulm University (Germany), University of Budapest (Hungary), University of Salford (Manchester, UK) USA: MIT, University of Stanford, University of San Diego, University of Santa Clara Asia: Tsinghua University of Beijing (China) Collaborative R&D


Our perspective: Loin devant et proche de vous Our perspective And tomorrow? Far ahead and close to you