Orange Luxembourg, a first semester shaped by strong regulatory pressure
Orange Luxembourg strengthens its market position with convergent offers (combining mobile, landline, internet and television) and continues to consolidates its networks, despite a regulatory impact putting a strong burden on its results.
The mobile phone market in Luxembourg has been exposed to an unprecedented regulatory pressure, with a drastic drop of MTR (Mobile Termination Rates) that impacts the whole sector in Luxembourg and among it Orange Communications Luxembourg S.A.
The global turnover of the 1st semester 2014 amounts to 30.7 millions euros, a reduction of 18.4% compared to the same period of 2013. This reduction is essentially linked to the reduced mobile termination rates since February 2014 and the evolution of roaming in Europe. Apart of these regulatory decisions, which amount to 7 millions euro, the global turnover would have amounted to 37.7 millions euros, an increase of 0.1 %. Considering the unfavourable evolution of the regulatory framework, the management accelerate their efforts to restructure the business and mitigate the regulatory impact on their financial plan.
As for 30th June 2014, Orange Communications Luxembourg S.A. accounts 100.741 active mobile clients a decrease of 4.4% compared to the year before. A raise of 4.2% for post-paid clients can be observed. New clients opt mainly for television, internet, landline and mobile telephony with plans that include roaming units in Europe. Actual clients renew their confidence to the operator sustainably. The reduction of the total number of clients is mainly due to declining prepaid cards, a tendency that can be observed with all operators in Luxembourg.
Orange continues with its network extension policy, opening 8 new 2G/3G sites and 40 new 4G sites during the first semester, and investing furthermore in the continuous quality improvement of the service platforms. Since the 1st July 2014 Orange offers its clients exclusively to take advantage of 4G roaming, as far as available from the 4G operators in the following countries: Germany, Canada, South Korea, Spain, France, Greece, Italy, Romania, Switzerland, United Kingdom, United States.
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