Global One and Frence Telecom NN's accounts and contracts awarded
last year will get boost.Synergies created by F.Telecom and Global One
under one boss are enormous.
Just my opinion.
Zbyslaw
PARIS--(BUSINESS WIRE)--Jan. 27, 2000--Following the purchase of
Global One, France Telecom announces today an aggressive strategy to
boost its position as a global provider of worldwide services to
multinationals and carriers.
The acquisition of Global One also strengthens the other elements
of France Telecom's international strategy: becoming a leading
pan-European wireline-wireless-Internet carrier; and investing
selectively in emerging markets with high-growth potential.
"This acquisition is a major step forward in France Telecom's
international strategy," says Michel Bon, Chairman and Chief Executive
Officer of France Telecom. "Using the synergies created by this deal,
France Telecom together with Global One will move aggressively in the
global corporate market. Our combination of global size and strong
local presence will allow us to offer business customers something
special: a unique, top-quality solution that truly answers all of
their needs."
France Telecom will seek all the regulatory approvals required.
Global One: a worldwide brand for corporate solutions
France Telecom plans to leverage Global One to create an
integrated voice and data communications provider active worldwide in
the corporate market. France Telecom will use the single "Global One"
brand and will take advantage of the synergies between Global One and
the France Telecom data division.
France Telecom's strategic ambition in the global corporate
solutions business is to become a key player in managed data networks
and IP-based communication and hosting. Several factors make the
France Telecom/Global One combination unique in the global corporate
solutions business: best-in-class skills in communications services,
including applications hosting and network integration, co-ordination
of large customer projects worldwide, and seamless provision of all
service components.
France Telecom's strategy for the global corporate market is
based on both worldwide reach and a strong local presence,
particularly in Europe. Combining these two elements creates a
comprehensive offer with the power to meet all the varied, and
constantly changing needs of corporate customers.
Global One strengthens France Telecom's carrier wholesale
services business
The acquisition of Global One allows France Telecom to develop a
leading voice and IP carrier wholesale business, leveraging its
extensive network reach, marketing and sales activity, as well as
creating significant operating synergies.
France Telecom's strategic goal is to become the leading European
wholesale carrier for both voice and IP.
The single ownership of Global One enhances an early turnaround
In order to fully leverage all available synergies, France
Telecom will focus Global One on two integrated businesses: global
corporate solutions and global carrier wholesale services.
Developing synergies with France Telecom's existing operations
and network will turn EBIT positive by 2002, based on Global One's
activity today. The main sources of EBIT improvement will be the
synergies with domestic French operations and European activities, in
particular with the European Backbone Network.
"To achieve this transition, the major short term objective will
be to implement a series of aggressive action plans addressing key
management and operational issues," declared Daniel Caclin, who will
soon be named CEO of Global One. "The acquisition of Global One by
France Telecom will enhance the excellent service Global One's
customers already receive."
Furthermore, all three original shareholders have signed
guaranties ensuring continuity of service during a transition period
of two years.
About Global One
Created in January 1996 as a joint-venture between France
Telecom, Deutsche Telekom and Sprint, Global One is a leading
corporate telecom service provider with revenues in 1999 of $1.1
billion.
Awarded 'Best Carrier 1999' by the trade media and analysts,
Global One is recognized as the most customer responsive company on
its market. It offers international reach with sales presence in more
than 65 countries. Global One customers number more than 30,000
companies, including UPS, Unilever, Coca Cola, Hewlett Packard, Nortel
Networks, Japan Tobacco International and Zeneca.
Global One deployed a worldwide ATM-based network reaching more
than 800 cities in 40 countries. With more than 1,400 access centers
outside Germany, France and the USA, this state-of-the-art network
provides an innovative portfolio of end-to-end solutions. Global
voice, data and IP network solutions for multinational companies
include services such as VPN, call centers, frame relay, Lan-to-Lan,
as well as Internet and Intranet solutions and the highly successful
Global ATM. globalone.net
About France Telecom
France Telecom is one of the world's leading telecommunications
carriers, with 1998 consolidated operating revenues of 24.6 billion
euros and operations in more than 50 countries. France Telecom
provides businesses, consumers and other carriers with a complete
portfolio of solutions that spans local, long-distance and
international telephony, data, wireless, multimedia, Internet, cable
TV, broadcast and value-added services. France Telecom held an initial
public offering in October 1997 and is listed on the Paris and New
York (NYSE: FTE) stock exchanges. francetelecom.com
Daniel Caclin is currently France Telecom's Executive Vice
President for Data Business. In 1994, he was appointed Chairman and
CEO of Transpac, a fully owned subsidiary providing Corporate Data
networks and Internet services to large customers. From 1989 to 1994,
he was head of a large region within the France Telecom national
organisation. Prior to that, he held various positions of
responsibility for France Telecom mostly in the commercial and
financial areas. Aged 46, Daniel Caclin is married and a father of
four. His hobbies, besides music, include 30 years' practice of
mountain climbing. |
