A case study on France Telecommunications expansion into Canadian markets.

1. FRANCE TELECOM
Canadian Markets

2. Contents
• Wireless Telephone Services in Quebec
• Prices of Quebec Telephone Services
• Elasticity of Demand for Wireless Telephone Services
• Making Decisions about Pricing for France Telecom
• Competitive Environment in Wireless Telephone Sector
• Gaining Market Share through Pricing Strategies

3. Agenda
• Environmental Scan
• Competitive Analysis
• Elasticity of Demand
• Pricing Recommendations

4. ENVIRONMENTAL SCAN
SWOT | PEST

5. *www.orange.com/wholesalesolutions.home
Strengths
• European market leader
• Network infrastructure
• Focused research and development strategies
• Diverse geographical portfolio with strong mobile
telecommunications operations

6. *www.orange.com/wholesalesolutions.home
Weaknesses
• Labor crisis
• Concentrated revenue from France
• No presence in emerging markets

7. *2010 International KPMG comparative study on business location
www.orange.com/wholesalesolutions.home
Opportunities
Political
• Low CRTC presence
• Government stimulation
• Industry Growth
• Industry Consolidation
Economic
• 5.8% lower operating costs in QP*
• Quebec is maintaining economic growth at 2%
Social
• 7.4% increase in subscribers (2010)
• 30 M. customers expected by 2015
Technology
• 3G and 4G networks
• Real-time transactions
• Multimedia messaging

8. *www.orange.com/wholesalesolutions.home
Threats
Political
• Government Intervention
• Big 3 lobbying for entrant restriction
Economic
• Average disposable income in Quebec lower than national
• Fragile EU economy (slowdown)
Social
• Safety
•
Technology
• Fast-paced industry
• Updated networks
• Coverage areas, drop-calls

9. COMPETITIVE ANALYSIS
Leading Competitor Analysis
Service vs. Price Analysis
Market Share & Demand Analysis

10. Major Competitors
• Rogers Wireless
• TELUS Mobility
• Bell Mobility
• Aliant Mobility
• Sask Tel Mobility
• MTS Mobility

11. *http://www.investquebec.com/en/index.aspx?page=512
Bell Mobility
• World leader in the communications field
• Landline and wireless telephone networks
• IP networks and solutions
• E-commerce
• Systems integration
• Directory assistance
• Satellite transmission network
• High-speed Internet access
• Web site hosting
• Direct satellite broadcasting
*www.bell.ca/Mobility

12. *http://www.investquebec.com/en/index.aspx?page=512
Rogers Wireless
• Leading Canadian wireless communications provider
• Wireless, GSM/GPRS and analog networks
• Serves 7 million+ subscribers
• Covers 93% of Canada's population
•.
*www.rogers.com/web/link/wireless

13. *http://www.investquebec.com/en/index.aspx?page=512
TELUS Mobility
• Major national leader in telecommunications industry
• Internet Protocol (IP)
• Stands apart with next-generation network
*www.telusmobility.com

14. Voice Plans
Competitor Plan Differences Price ($)
250 mins Free from 9 – 7 40.00
∞ SMS or MY5 0.45/minute
Activation Fee; 35
150 mins Free after 6 42.75
∞ Texting or MY5 0.45/minute
Activation Fee; 30
250 mins *Free after 9 (1yr) 40.00
∞ SMS or MY5 *Free after 6 (2yr) 0.40/minute
Voicemail Activation Fee; 35

15. Voice & Data Plans
Competitor Plan Differences Price ($)
200 mins Free from 9 – 7 50.00
500 MB 0.05/MB
∞ SMS or MY5 0.45/minute
Activation Fee; 35
200 mins Free after 6 52.75
500 MB 0.05/MB
∞ Texting or MY5 0.45/minute
Activation Fee; 30
200 mins *Free after 9 (1yr) 50.00
*Free after 6 (2yr)
500 MB 0.05/MB
∞ SMS or MY5 0.40/minute
Voicemail Activation Fee; 35

16. Share Plans
Competitor Plan Differences Price ($)
50 mins Free from 7 - 9 20 /member
400-600 mins Unlimited Users 105 - 125
1 GB Data Free after 6
- - -

17. Pay-as-you-Go Plans
Competitor Plan Differences Price ($)
$15 start-up credit No Monthly Rate 0.30/ Admin
0.30/Min
0.20/Text
$10 Activation Voicemail 0.75/Mth. (Admin)
Bonus 20% Auto Save 0.40/Min
0.01/Min (WE/8-8)
UNLT. WE/9-7 1/day
0.20/Min
0.15/text
3/MB

18. *http://www.digitalhome.ca/2011/04/canada-ends-2010-with-24-5-million-wireless-telephone-subscribers
Market Share
Wireless Telecom Market Share
By Subscribers (2010)
0% 2% 2% 1%
Rogers
36% Bell
29%
Telus
Videotron
Sasktel Mobility*
MTS Mobility*
Wind Mobility*
30%
*Leaches of Bell

19. PRICE ELASTICITY
Demand

20. *http://www.digitalhome.ca/2011/04/canada-ends-2010-with-24-5-million-wireless-telephone-subscribers/
Demand
Subscribers Growth
(in millions) (2010) (2009-2010)
8.98 466 000
7.24 408 746
6.97 447 000

21. *http://www.investquebec.com/en/index.aspx?page=512
Demand
• Leading Canadian wireless communications provider
• Wireless, GSM/GPRS and analog networks
• Serves 7 million+ subscribers
• Covers 93% of Canada's population

22. Demand Elasticity
*Data obtained from an original survey