LONDON-Orange plc said today it will join an alliance with three other European mobile operators in a move to better compete against European leader Vodafone Group plc. The announcement came at a strategy presentation by newly appointed Orange Chief Executive Solomon Trujillo.
Orange said it will join an alliance first announced in April and currently comprised of Telecom Italia Mobile, Telefonica Moviles and T-Mobile International to offer near pan-European services to business clients. The operators said they will take advantage of network sharing, joint development of new enterprise services and a much simpler pan-European pricing structure for mobile data.
In addition, Orange announced its plans to improve earnings before interest, taxes, depreciation and amortization by 15 to 17 percent per year from 2003 to 2005. Trujillo said operating free cash flow will increase by 40 to 45 percent per year, bringing in $16.1 billion during the same period.
Orange parent company France Telecom is heavily indebted, and the fixed-line company is relying on its mobile subsidiary to help it pay down debt.
