TV is key in acquiring broadband customers TV has become a “must have” for broadband ADSL offers
exclusive TV content (soccer, sport events) is attracting new subscribers to Orange triple play
Orange group IPTV subscribers
450 400 350 300 250 200 150 100 50 0 1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
TV is also a key driver for the adoption of 3G and new services.
Orange group mobile broadband* subscribers 4500 4000 3500 (000s)
3000 2500 2000 1500 1000 500 0 4Q04
5
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
* Edge + 3G
VOD provides incremental ARPU and margin
VOD on TV and PC is available on pay-per-view basis with prices ranging from 1 to 5 € per view
Orange offers the most up-to-date VOD catalogue on IPTV/PC in France (2300+ films) VOD on TV/ PC business model
± 35%
revenues promotion cost
platform
royalty collection
content cost
direct cost margin
VoD content on mobile is monetised through multimedia options and/or àla-carte or pay-as-you consume
6
France Telecom Investor Day - December 15, 2006