), which operates the brand Orange, has entered into a strategic
) to meet the growing demand of business customers in the media
and e-commerce groups. This alliance marks the combination of two
leaders in their respective domains; while France Telecom is the
leading global telecommunications carrier, Akamai Technologies is
a leading cloud infrastructure and content delivery network (CDN)
AKAMAI TECH (AKAM): Free Stock Analysis
FRANCE TELE-ADR (FTE): Free Stock Analysis
TELECOM ITA-ADR (TI): Free Stock Analysis
VODAFONE GP PLC (VOD): Free Stock Analysis
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Per the agreement, Orange will utilize the Aura Network Solutions
of Akamai to offer CDN services to various clienteles. Orange
Business Services - the enterprise division of the French telecom
behemoth - will initially sell these solutions in the nation.
Orange - the largest Internet service provider in France as well
as in Europe - highlighted that CDN solutions will pave way for
better web-based traffic, particularly in HD video and e-commerce
sectors. A well connected network of servers enables the solution
to distribute the content over a large area, which otherwise
would have been limited within a small number of locations. This
leads to a more efficient network and protected system. Also, end
users will enjoy superior service quality with faster access and
Additionally, Orange and Akamai have agreed to explore the
different aspects of the CDN solutions for further improvement.
Both the companies are aiming to meet the surging demand for
content delivery through this collaboration. The partnership
interconnects Akamai's know-how of Internet performance across
multiple devices with Orange's integrated network.
We believe that this collaboration will present Orange the
opportunity to enrich its networking business unit and bring in
more customers by offering upgraded and differentiated web
Paris-based France Telecom - one of the biggest wireless
operators in Europe apart from
Telecom Italia SpA
Vodafone Group Plc
) - offers domestic and international long distance, data
communications, wireless, multimedia, Internet access, broadcast
and cable TV services along with local phone service.
In late October, France Telecom reported third-quarter 2012
earnings with revenue decreasing 3.5% year over year to €10.76
billion ($13.9 billion). Adjusted EBITDA dropped 7.3% year over
year to €3.65 billion ($4.71 billion), resulting in EBITDA margin
of 33.9%, down by a significant 140 basis points from the
France Telecom currently holds a Zacks #5 Rank, which implies a
short-term Strong Sell rating.