France Telecom (Wireline Strategy)

Although France Telecom Group delivered a reported revenue growth of 9.3% on a historical basic (1.4% on a comparable basis) year-on-year in the first six months of 2006, the outlook is subdued for an increasing proportion of its operations.

With the exception of the mobile operations and the relatively small directories business, where revenues grew by 22.3% (a much less impressive 6.1% on a comparable basis) and 6.4%, respectively, revenues diminished pretty much everywhere else, with a 0.3% (2.3% comparable) drop in the Home Communications Services segment, and a 2.6% (6.7% comparable) decline in Enterprise Communication Services.