Rivals to follow Orange's lead?

Will the mobile telco's repackaging of voice, data and mobility products start a trend?

France Telecom's recent repackaging of its voice, data and mobility products into Orange Business Services could be the first of many integrated services from major operators and carriers, paving the way for a drastic overhaul of the European telecoms market.

Andrew McFadzen, the newly appointed general manager of Orange Business Services, said that the combination of global IP virtual private network (VPN) and remote access provision, tied with both IP and analogue fixed-line telephony services plus mobile phone contracts is unique.

"Corporate customers will have one account manager and will be able to buy all of their managed data, telephony and mobility services through a single contract," McFadzen said.

Stephanie Pittet of analyst Gartner said companies such as BT and Vodafone are certain to follow a similar path in the near future, and that consolidation in both the fixed and mobile telecoms market is inevitable. But she also believes that other providers can survive by focusing on small and medium-sized enterprises (SMEs) and home workers, or specific industries.

Orange Business Services is testing a fixed-mobile convergence (FMC) system in France, and will eventually offer mobile telephones as a replacement for fixed-line handsets to residential customers in the UK, though business customers may have to wait longer.

"We are focusing on convergence rather than substitution and initially we will be selling switched fixed-line services to companies with integrated billing. We'll add broadband and IP telephony later and let customers decide whether they choose a mobile- or a fixed-line-centric package," said Alastair MacLeod, vice-president of Orange Business Services for SME and corporate markets.