France Telecom's Itineris GSM Cellular Service Tops Ten Million Subscriber Mark, Setting World Record for Monthly Net Sales - Company Business and Marketing

Cambridge Telcom Report, Jan 10, 2000

France Telecom's Itineris GSM service signed up 1.2 million new customers in December 1999, setting a world record for gross sales. The single-day record was set on December 24, when 136,000 Itineris sales were posted.

On December 31, France Telecom had over 10 million customers for its wireless services (including 200,000 customers of the Ameris service operated by France Caraibes Mobiles in the Caribbean) and continues to widen the gap with competitors. France Telecom maintained its leadership in 1999, gaining approximately 50 percent of the French GSM market.

France Telecom achieved this success with a marketing policy centered on lower handset costs, as opposed to offering free calltime. This latter strategy not only detracts from the economic value of the business, it also has a negative impact on network service quality.

France Telecom's success also reflects the ever-improving call quality on the Itineris network, backed by excellent service throughout the country, as confirmed in the annual survey released by France's telecom regulatory authority, ART.

France Telecom will invest an additional seven billion francs in 2000 in ongoing network quality enhancements and development of new services, particularly wireless/Internet convergence.

France Telecom (NYSE:FTE) is one of the world's leading telecommunications carriers, with 1998 consolidated operating revenues of 24.6 billion euros (first nine months 1999: 19.7 billion) and operations in more than 50 countries. France Telecom provides businesses, consumers and other carriers with a complete portfolio of solutions that spans local, long-distance and international telephony, data, wireless, multimedia, Internet, cable TV, broadcast and value-added services. France Telecom held an initial public offering in October 1997 and is listed on the Paris and New York stock exchanges.