Orange shakes up UK business

France Telecom is shaking up the management at its Orange mobile phone business in the UK after seeing its profitability decline.

Bernard Ghillebaert, chief executive of Orange UK, is leaving the post, and is expected to be replaced by a Briton from outside the France Telecom group.

France Telecom declined to comment on Sunday night. Mr Ghillebaert could not be reached.

Mr Ghillebaert's move follows a review of Orange UK by Olaf Swantee, who joined France Telecom as head of mobile operations for Europe and the Middle East in August.

Mr Ghillebaert suggested in the summer that Orange, once the cutting-edge mobile brand in the UK, had lost its "sparkle". He said it was because rivals had copied its tactics.

He became chief executive of what is France Telecom's second largest mobile business by revenue in 2004, and is expected to move to another post in the French group.

Mr Swantee, who joined France Telecom from Hewlett Packard, has been reviewing all the mobile operations he is responsible for.

Orange UK has reported falling profitability because of the cut- throat competition with arch rivals O2, Vodafone and T-Mobile, and pressure from regulators for price cuts.

As the third largest UK operator, with 15.2m mobile customers, Orange reported operating profit of €712m in the six months to June 30, down 8.6 per cent against the same period last year.

Operating profit was €1.4bn in 2006, down 17.1 per cent, and France Telecom took an impairment charge of €2.4bn against Orange UK because of the intense competition.

At 23.4 per cent, Orange UK had the worst operating margin of France Telecom's four major wireless businesses in 2006.

There was a 0.2 percentage point improvement in Orange UK's margin in the first half of this year, taking it above that of France Telecom's Spanish mobile operations.

The UK operations of O2 and Vodafone have seen their margins fall because of the intense battle for mobile customers, but they remain above Orange. Orange UK's broadband operations are also under pressure because of fierce competition.

Orange has 1.1m fixed-line broadband customers, but it risks becoming a sub-scale player compared to BT, Virgin Media and Carphone Warehouse. British Sky Broadcasting is mounting an intense drive for broadband customers.

Last month Eric Abensur, head of Orange UK's broadband operations, left "by mutual consent". In March a BBC survey by the consumer programme Watchdog found Orange provided the worst service to broadband customers. ( FT )

Subscribe to Trend in Google News! Subscribe
Iran talks exports of its nano products to Iraq, Turkey, Afghanistan
Iran talks exports of its nano products to Iraq, Turkey, Afghanistan
Iran sees increase in manufacturing of several industrial, mining products
Iran sees increase in manufacturing of several industrial, mining products
Iran's trade turnover with Azerbaijan booming - IRICA
Iran's trade turnover with Azerbaijan booming - IRICA
Loading Bars
Latest
Apple importer iDigital plans TASE IPO at NIS 1b valuation
Turkey notes growth in cement exports to Uzbekistan
Azerbaijan prolongs program of cooperation with FAO
Oil gains as traders await stocks data, Iran talks
Embassy of Hungary with support of AZAL presents “Treasures of Hungary” photo exhibition (PHOTO)
U.S. Treasury's Yellen raised 'issues of concern' with Chinese Vice Premier Liu -statement
1,353 more COVID-19 cases reported in Kazakhstan
From digital transformation to strategic priorities: Siemens talks work in Uzbekistan (Exclusive)
Chinese Xi congratulates Mirziyoyev on election as Uzbek president
Man shot inside Union Square subway station in New York
Facebook invests billions in metaverse efforts as ad business slows
Egypt not to extend years-long state of emergency: president
Spain's COVID-19 cases top 5 mln
Seven killed, 140 hurt in protests against Sudan military coup
Western ambassadors took a step back, will be more careful: Erdogan
Tesla’s market value tops $1T after Hertz orders 100K cars
6 injured, including officer, in Idaho mall shooting
Saudi Arabia outlines plans under Mideast Green Initiative
British PM tells Putin Russia-UK relationship "is not the one" London wants
Chronicles of Victory: President Ilham Aliyev interviewed by Italian Rai 1 TV channel on October 26, 2020 (PHOTO/VIDEO)
Chronicles of Victory: President Ilham Aliyev addresses the nation on October 26, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 26, 2020
Development of financial technologies in Kyrgyzstan discussed in Bishkek
Georgian PM holds videoconference with Ukrainian, Moldovan counterparts
Modernization of our country, fight against unpleasant situations must reach a completely new level - President Ilham Aliyev
We are a creator nation, and we will rebuild Gubadli - Azerbaijani president
Africa's COVID-19 cases near 8.5 mln: Africa CDC
For me, biggest reward is joy and pride in the eyes of former IDPs - Azerbaijani president
Second Karabakh war showed our strength and our national spirit - President Ilham Aliyev
After 27 years, we ended the occupation and expelled the enemy from our land - Azerbaijani president
Zangilan airport will be commissioned next year - President Aliyev
We will restore all settlements of Gubadli district, including Gubadli city - Azerbaijani president
After restoration work is completed, streets will be named after martyrs - President Aliyev
Uzbekistan’s 9M2021 imports of Turkish leather goods increase
Azerbaijan defense minister meets leadership of Turkish National Defense University (PHOTO)
Azerbaijan, NATO talk prospects for co-op in various spheres (PHOTO)
Ernst & Young reveals total revenues of Uzbekneftegaz during 1H2021
Turkey shares data on cargo shipments via its Aliaga port
Iran talks exports of its nano products to Iraq, Turkey, Afghanistan
Azerbaijan’s State Tax Service expanding use of electronic signature
Turkey discloses volume of cargo shipment via Ambarli port in 9M2021
Iran sees increase in manufacturing of several industrial, mining products
Iran's trade turnover with Azerbaijan booming - IRICA
Azerbaijan’s timber imports from Russian region revealed
Iran's Energy Exchange announces products to be on sale on October 26
Turkmenistan, Kazakhstan sign number of bilateral co-op documents
Iran’s Bahar Azadi gold coin price slightly rising
Kazakhstan ready to significantly increase imports of Turkmen gas - President Tokayev
Azerbaijan publishes latest data on mine clearance work carried out in liberated lands
Georgia records highest budget deficit in ten years
Azeronline providing companies in Azerbaijan's liberated lands with Wi-Fi
Kazakhstan ready to increase trade with Turkmenistan
Azerbaijan to open embassy in Vatican
Program of Turkish president's visit to Azerbaijan announced
Airbus rejects pressure to curb record jet output goal
Azerbaijan to export Karabakh honey to France
Azerbaijan reveals funds allocated for drawing up master plan for Gubadli city
Galt & Taggart shares data on Georgia's tourism revenues growth
US data cloud giant Snowflake opens Israel office
Chinese oil company sells stake in Azerbaijan
Turkmenistan, Kazakhstan to dock telecommunication networks at border
It'll take time for Kazakhstan to accelerate its energy transition - Rystad Energy
Iran increases export by aid of private sector
Iran to reform budget plan structure
Azerbaijan discloses timing of booster vaccination for COVID-19 infected persons
Participants of online Global Poster and Painting Competition 2021 felicitated (PHOTO)
Azerbaijani defense minister meets NATO official (PHOTO)
Output volume at Azerbaijan’s Kursangi, Garabagli fields revealed
Fitch places credit ratings of 4 Qatari banks on negative watch
Kazakhstan to raise solid waste disposal share
Uzbekistan eyes implementation of joint projects with Russia
Azerbaijan shares data on number of vaccinated citizens
Hertz orders 100,000 Tesla cars for end of 2022
Azerbaijan confirms 1,477 more COVID-19 cases, 628 recoveries
Kazakh National Bank positively assesses development dynamics in domestic real sector
Azerbaijan exceeds honey production plan
National Iranian Drilling Company unveils number of drilled oil-gas wells in country
Turkey to invest in construction of laboratory for veterinary vaccines production in Azerbaijan
Afghanistan still owes Uzbekistan for electricity, debt continues to grow
VTB Bank Azerbaijan sees drastic increase in net profit
Azerbaijani Ombudsman briefs Bulgarian delegation about crimes committed by Armenia
Azerbaijani president congratulates president of Uzbekistan
After Gubadli, we continued our victory march with dignity and raised our national flag in Shusha - President Aliyev
Georgia's import prices dropping – TBC Capital
Azercell offers a new Wi-Fi campaign!
After many years, we all experienced joy of this victory - Azerbaijani president
Present and future generations of our people will always be proud of our martyrs - President Aliyev
Kazakhstan reports increase in annual coal production volumes
Iran reveals COVID-19 data for October 25
Azerbaijan shares latest data on lending to mining industry
Galt & Taggart reveals Georgia's trade turnover statistics
It is significant and historic day in history of Gubadli district today - President Ilham Aliyev
Kazakhstan eyes completing main reconstruction work of Kostanay airport by end of 2021
SOFAZ reveals revenues from Shah Deniz, ACG
Kazakhstan, Mongolia agree to continue co-op in agro-industrial complex
Iran's East Azerbaijan province continues investments in construction projects
Iran invites investors to develop energy sector
First Vice-President Mehriban Aliyeva shares photos from Gubadli district on her Instagram page (PHOTO)
Iran seeks to curb inflation by aid of private sector
Kyrgyzstan plans to receive USD 80 mln from ADB for budget support
All news