France Telecom will rebrand its Itineris French mobile operation under the Orange name.
France Telecom announced today that it will relaunch its French mobile operator, which currently trades as Itineris, under the Orange brand name. Itineris is already part of France Telecom’s Orange SA subsidiary, which owns all the French telco’s mobile interests.
It’s certainly a good idea. Orange is one of the strongest brands in the mobile arena, associated across the world with an innovative, non-corporate and customer friendly approach, as exemplified by former CEO Hans Snook. Itineris, on the other hand, has a much stuffier image – as one might expect from a firm run by the incumbent former telecoms monopoly.
But while the rebranding is sensible, it’s unlikely to make a huge difference to the French mobile division’s results. Undeniably, one of the reasons behind France Telecom’s E33 million purchase of the original Orange was its brand name and image, as well as its UK and European mobile interests. When a company is expanding into new markets and territories, and trying to hook new customers amid fierce competition, a trusted international brand name is a major asset.
This isn’t the case in France, however. Not only does Itineris currently have 48% market share, it is currently competing in a market with only two other players (Vodafone/Vivendi’s SFR and independent Bouygues Telecom) – and SFR is the only player other than Orange to have a French 3G license. It’s still uncertain whether there will be any takers for the two vacant licenses when bidding restarts next year. The competition, overall, is less than cutthroat.
The Orange name may help in one respect, though. Mobile penetration rates are lower in France than elsewhere in Europe, at just 52% compared with the 65-75% seen in Scandinavia and the UK. While some of this is undeniably due to the lack of competition, it’s certainly true that mobile phones haven’t taken off as a lifestyle accessory in France as much as elsewhere. It’s just possible that the rebranding will make the French see mobiles as a little more chic.
