Orange Business Services

Orange Business Services
Subsidiary
Industry Technology consulting
Technology services
Information and communications technology
Predecessor Equant (November 2000)
Global One (January 2000)
Founded 1 June 2006 (2006-06-01)
(as Orange Business Services)
Key people
 Stéphane Richard
(CEO, Orange S.A.)
Thierry Bonhomme, (CEO, Orange Business Services
Revenue €7.1 billion (2011)[1]
Number of employees
 30,000[1]
Parent Orange S.A.
Website www.orange-business.com

Orange Business Services, the business services arm of Orange S.A., is a global integrator of communications products and services for multinational corporations.[2]

It offers integrated communications products and services to global enterprises in cloud computing, unified communications and collaboration;[3] which manage and integrate the complexity of international communications.[2]

Orange Business Services was founded on 1 June 2006, through a rebranding and consolidation of the existing France Telecom businesses of Equant and Wanadoo.[4][5][6]

It operates in over 220 countries and territories and employs over 30,000 employees in 166 countries.[1]

History

Background of global ownership of Orange: Before May 2000

In May 2000, the Orange brand, through a complicated set of mergers and divisions,[7][8] was acquired and eventually retained by Orange S.A.,[9][10] then a fully owned subsidiary of France Télécom. The chain of mergers that led to the May 2000 acquisition are as follows;

The inception of Orange brand was In 1990 in United Kingdom with the formation of "Microtel Communications Ltd"[11] - a consortium initially formed by Pactel Corporation (American), British Aerospace (BAe, now BAE Systems), Millicom and Matra (French);[12] and later, to be wholly owned by BAe.[13] In July 1991, the Hong Kong-based conglomerate - Hutchison Whampoa through a stock swap deal with BAe, acquired a controlling stake of 65% in Microtel, who by then had won a license to develop a Personal communications network (PCN) network in United Kingdom.[12][13]

Subsequently, Hutchison renamed Microtel to Orange Personal Communications Services Ltd, and on 28 April 1994, Orange brand was launched in the UK mobile phone market . A holding company structure was adopted in 1995 with the establishment of Orange plc. In April 1996, Orange went public and floated on the London Stock Exchange and NASDAQ,[14] majority owned by Hutchison (48.22%),[15][16] followed by BAe (21.1%).[14] In June 1996, it became the youngest company to enter the FTSE 100, valued at £2.4 billion. And by July 1997 Orange had gained one million customers.

The stint as a public company came to an end in October 1999, when it was acquired for US$33 Billion by the German conglomerate - Mannesmann AG.[17][18] The Mannesmann's acquisition of Orange triggered Vodafone to make a hostile takeover bid for the German company. Shortly thereafter, in February 2000, Vodafone acquired Mannesmann for US$183 Billion and, decides to divest Orange as the EU regulations wouldn't allow it to hold two mobile licences.[19] France Télécom in May 2000, announced the acquisition of the global operations of Orange from Vodafone for US$37 Billion and the transaction was completed in August 2000.[20][21][22]

Evolution of business services arm of France Telecom: 2000 - 2006

With the strategic ambition to become an integrated player in managed data networks and IP-based communication and hosting for multinational and local enterprises,[23] France Telecom in January 2000 bought out its two partner's stake (Sprint Nextel and Deutsche Telekom) in the joint venture founded in January 1996- Global One for US$3.88 Billion.[24]

In November 2000, France Telecom acquired a controlling stake of 53% in Dutch-based network operator Equant,[25] part of the SITA group of companies which provided network services to the air transport industry. France Telecom started the process of integrating Global One unit with Equant in 2001 and acquired all outstanding Equant stock by 2005.[26][27]

Launch of Orange Business Services: 2006 - present

On 1 June 2006, France Telecom announced the consolidation of the group's business services operations and rebranded the businesses of Equant and Wanadoo to a new single entity - 'Orange Business Services'.[28] The rebranding exercise created France Telecom SA's global brand for mobile telephony, as well as all broadband and business connectivity services - Orange.[28]

Organisation and operations

It operates in over 220 countries and territories and employs over 30,000 employees in 166 countries.[29] It is organised in the following geographical divisions:

It has four major services centers in Mauritius, Cairo, Gurgaon and Petrópolis.

Products and services

It offers integrated communication products and services to global enterprises in cloud computing, unified communications and collaboration, which manage and integrate the complexity of international communications.[30][31]

The service and products portfolio include,

Case studies

The complex merger operations that led to ownership of Orange by France Telecom and its subsequent branding is a subject for numerous management case studies on topics like strategic management,[8][32][33] brand management,[7][8][33][34] PEST analysis,[7] financing methods of merger and acquisitions[32] and leveraged buyouts.[32]

See also

References

  1. 1 2 3 "Orange : Careers". Retrieved 9 June 2012.
  2. 1 2 "Orange Business Services - People and Presence". Orange SA. Retrieved 9 June 2012.
  3. ↑ "Orange Business Services named data communications service provider of the year 2012". 8 June 2012. Retrieved 9 June 2012.
  4. ↑ "Bloomberg Business week - Company Overview of Orange Business Services". Retrieved 9 June 2012.
  5. ↑ "Orange Business Services History". hoovers.com. Retrieved 9 June 2012.
  6. ↑ "LinkedIn - Orange Business Services profile". hoovers.com. Retrieved 9 June 2012.
  7. 1 2 3 "Management Case Study - Orange Romania". Coursework. Retrieved 9 June 2012.
  8. 1 2 3 "The Story of the Cellular Phone Brand Orange and how legal system affects branding (Case Code: BSTR002)". icmrindia.org. Retrieved 9 June 2012.
  9. ↑ "Orange SA History". hoovers.com. Retrieved 9 June 2012.
  10. ↑ "Bloomberg Business week - Company Overview of Orange SA". Retrieved 9 June 2012.
  11. ↑ "Orange SA profile". ide.go.jp. 20 November 2000. Retrieved 9 June 2012.
  12. 1 2 "History of Cellular services". licensing.ofcom.org.uk. Retrieved 9 June 2012.
  13. 1 2 "The Facts : 2004" (PDF). na.baesystems.com. p. 107. Retrieved 9 June 2012.
  14. 1 2 "BAe's record-breaking sterling Eurobond issue" (PDF). 22 June 1999. Retrieved 9 June 2012.
  15. ↑ "Hutchison Whampoa Releases Annual Results 1996". 26 March 1996. Retrieved 9 June 2012.
  16. ↑ "Telecommunications - Hutchison Whampoa". 1996. Retrieved 9 June 2012.
  17. ↑ "Mannesmann to buy UK cellular firm; Vodafone, Hutchinson likely to react". CNN. 21 October 1999. Retrieved 9 June 2012.
  18. ↑ "Mannesman to buy Orange for $33bn". New York Times. 21 October 1999. Retrieved 26 December 2008.
  19. ↑ "Vodafone seals Mannesmann merger". BBC. 11 February 2000. Retrieved 26 December 2008.
  20. ↑ "Orange's bright future". BBC. 8 January 2001. Retrieved 9 June 2012.
  21. ↑ "France Telecom buys Orange for $37 bn". Financial Express. 30 May 2000. Retrieved 9 June 2012.
  22. ↑ "France Telecom clinches Orange deal". BBC. 30 May 2000. Retrieved 9 June 2012.
  23. ↑ "France Telecom to Buy 100% Global One". 27 January 2000. Retrieved 9 June 2012.
  24. ↑ "Global One joint venture collapses". CNET. 26 January 2000. Retrieved 9 June 2012.
  25. ↑ "France Telecom takes over Equant". BBC. 20 November 2000. Retrieved 9 June 2012.
  26. ↑ "France Telecom, Equant Sign Multi-Billion Dollar Deal". 20 November 2000. Retrieved 9 June 2012.
  27. ↑ "Equant N.V. History". fundinguniverse.com. Retrieved 9 June 2012.
  28. 1 2 "Branded - Orange". 1 August 2005. Retrieved 9 June 2012. by Michelle Donegan
  29. ↑ "AT & T and Orange business services expand telepresence". 4-traders.com. Retrieved 9 June 2012.
  30. ↑ "Orange Business Services presentation at MIT" (PDF). mit.edu. Retrieved 9 June 2012.
  31. ↑ "AT & T and Orange business services expand telepresence". Bloomberg. Retrieved 9 June 2012.
  32. 1 2 3 "Case study : The Acquisition of France Telecom S.A and Orange Plc". Retrieved 9 June 2012.
  33. 1 2 "Rebranding to Branding : A Semiotical Journey" (PDF). 18 March 2008. Retrieved 9 June 2012. by Prof. Priyanshu Jain Asst. Prof. (Marketing), Institute of Marketing and Management
  34. ↑ "Superbrands case studies: Orange". Retrieved 9 June 2012.
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