France Telecom: Didier Lombard says the leadership to Stephane Richard
February 3, 2010
Why separate management of France Telecom?
The crisis has shocked us all in 2009, me included, is in the process of healing. The various projects are progressing as social dialogue with trade unions is constructive. The atmosphere is positive. We must come out on top of this crisis, that is why we are building a new business venture which will focus on several major projects, including the deployment of new mobile and fixed networks and better customer service. It's a project for three to four years to come. Whoever will take the lead must now match the mandate. I therefore propose to the Board of Directors February 24 to separate the office of President, that I cherish, that of general manager who will be entrusted to St?phane Richard.If the council approves the new governance, it will be implemented from 1 March.
Have you considered resigning?
I obviously asked all the questions, my decision has been taken in the interest of the group. With St?phane Richard, we will combine our efforts to give new impetus expected by the employees of this company.
What is your role on 1 March?
It is very clear. As president of France Telecom until June 2011, the end of my mandate, I will focus on running the board and will concentrate on broad strategic and technological fields which always fascinated me. St?phane Richard will be 100% operational commands.
Who will decide if they disagree?
There is no opposition between us. We think and work together, we're a team, a tandem.Thus, the strategy content, St?phane specify its choice based on regulatory developments. I myself prepared the necessary modifications. In all cases, we absolutely agree that the heart of the business group will remain and networks.
How will comprise the new team?
That St?phane Richard to present. But this is a team of renewal. It will make extensive use of internal people who have great skills. This is essential as a result of our history depends largely on the quality of this team. It is important today to restore pride to all employees of France Telecom.
Will there also be a new organization of the group?
Probably. Adjustments must intervene to take advantage of the wealth of our teams in France and at the same time the new geographical balance of the Group. .France Telecom carries in fact 50% of its turnover abroad. We agree with Stephane and I think he has heart to better integrate France in the entire group.
What can we learn from your 5 years at the head of France Telecom?
When I arrived, France Telecom was collapsing under its debt. Five years later, the company is still there, the leader in all its markets in France. France Telecom is the 7th global operator, present in 32 countries. In 5 years we have gained 50 million customers of 3% of the inhabitants of the planet are in our customers! The debt has decreased by 30% and we highlight one of the best returns of the ACC 40. All this in a context of fierce competition and regulatory uncertainty very penalizing.
What are you most proud of?
We made two major strategic shifts, without whom we would not be here today.First, we went first to the integrated fixed-mobile model now copied by everyone. It is a mutation that employees are successful and they have every reason to be proud. Secondly, we passed despite the Cassandras of the time to voice over Internet, which now affects 60% of our customers. If we had the passive resistance in confining us to the traditional voice network, customers would have gone elsewhere. It is a technological shift key should not be missed. As for our strategy of investing in content, it allowed us to win and keep many customers. Already, the growth of our core ADSL began in early 2006 when we launched the free channels.
Do you have any regrets?
Of course, above all, that of not being able to avoid social crisis.
Otherwise, I would have liked to go faster in the simplification of our catalog that offers over a thousand references. By focusing on innovation, I prompted an explosion of new products. Prune soon our old deals would not change for customers, but would also deleted the sources of stress for our employees!
The social crisis could she be saved?
There is a little over ten years France Telecom was still a public monopoly. Six years ago, the Group became a private company in the deep end of the competition. The transformation has been enormous and has not been smooth. But all the decisions we have taken, I mean all, have had only one goal: to preserve employment. Concerning the dramatic events of recent months, I would certainly act sooner.During the summer, every day I had a crisis meeting on this subject. We took the problem head on. But we probably would have, since August, implement measures that we implemented in October. But these humans are extremely sensitive, it is very difficult to assess the depth of things. I've often been in the field, I met with employees happy, some less, but still very attached to France Telecom which is like a big family. This very emotional relationship to the company partly explains the tragedies we have known.
What do you see as the next major revolution?
I just returned from Davos where I discussed at length with Eric Schmidt, Google CEO.People talk all the content of telemedicine, online games and other multi-network services that make us dream … To make this possible must be powerful networks that do not fall down, so that telecom operators are investing heavily. France Telecom spends each year to 6 billion euros in its network! Those who invest must be paid back. It will therefore be necessary to implement a regulation allowing operators to live is to say, finding a return on investment.
Fran?ois Fillon gave the starting signal of the fiber. What are your goals?
By age 5, the densest areas of all departments will be equipped with fiber optics. It is a site that takes time, construction of the current telephone network took nearly a century.But to avoid a gap between a web of cities to 100 megabits and Internet fields at 512 kilobits, France Telecom offers solutions to increase speed gradually. Some oppose it on behalf of the competition, but policies will have to decide in the interests of citizens.
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