Minitel -- the resistible rise of French videotex
Ewan Sutherland
France Télécom
The national carrier
Formerly the Direction Generale de Postes et de Telecommunications,
France Telecom is the national carrier in a very traditional way.
It remains either the monopoly provider or service or the dominant
provider.
France Telecom continued to grow in the 1980s and 1990s. However, it
did so without the reduction in staff seen in some PTTs and RBOCs.
(See figure)
Figure Profitability of FT
Source: France Télécom
Figure Breakdown of turnover for FT
Source: France Télécom
The future
France Telecom faces three major challenges:
- internal reform
- competition in its domestic market
- formation of global alliances
Organisationa reform is a potential minefield as the general strikes in
France in 1995 have demonstrated. Like Air France, the need for reform
is evident, bu the unions and the political situation makes the
reduction in staff numbers almost imnpossible. To complicate matters, many
of the staff are technically civil servants and so cannot be dismissed.
Competition in the French market is growing as the European Union directives
take effect. While it is not as competitive as Sweden or the UK and not
yet attracting the level of interest of Germany. In addition to the
usual international players (BT, AT&T, RBOCs, etc) there are many
domestic French companies keen to enter the market, some already have
entered it:
- Bougyues
- Electricite de France
- Generale des Eaux
- Lyonaisse des Eaux
France Telecom has chosen to enter into a controversial alliance to
form telecommunications company. With Deutsche Telekom AG a share
swap is being contemplated. Together, Deutsche Telekom and France
Telecom have bought 20 percent of Sprint (USA) and have an option
to purchase a further 20 percent. At the time of writing, it is
unclear whether and when these deals will be approved by the
relevant regulatory authorities: DG IV, FCC and the Department of
Justice.
At the end of August 1995, the French government through the minister
for information technology, Monsieur Francois Fillon, announced changes
for France Telecom.
Marcel Roulet, the chairman for some years, was to be replaced by
Francois Henrot, the chairman of Compagnie Bancaire, a financial
holding company. Henrot had worked at France Telecom earlier in his
career.
Within days Henrot resigned, before formally taking office. The reason
being alleged comments by Fillon to the effect that the organisational
reform of France Telecom could be further delayed. He was replaced by
Marcel Bon, head of the government's unemployment agency.
[ Introduction |
Invention |
Marketing |
French telecommunications |
France Télécom |
French videotex |
Messagerie Conviviale |
Unnatural market |
Cour des Comptes |
Quickening pace of technology and politics |
Conclusion |
Bibliography |
Chronology |
Web links ]
Copyright © Ewan Sutherland, 1995.
http://www.georgetown.edu/sutherland/minitel/france_telecom.html