Solid market position in France as the second largest convergent telecommunications player. Significant product and customer diversity via quadruple-play services, as well as wholesale services to other telecom operators. Own integrated telecom networks supporting its competitive position in the highly convergent French telecom market. Sustained intense mobile and fixed-line competition in France, and a declining fixed broadband (ADSL) subscriber base, although the decline has slowed. Execution risks on aggressive restructuring. Very high capital intensity, fragmentation, and pricing pressures in the industry. High debt burden and leverage. Relatively weak free operating cash flow (FOCF) generation on high leverage and heavy capital spending on fiber, fourth-generation (4G) mobile technology and content investments. Ongoing shareholder distributions to support debt service at the group.
