2.5 million digital TV customers for France Telecom

PARIS — France Telecom (Paris & NYSE: FTE) has released its first quarter 2009 results.

Home Communication Services

The number of ADSL Multiservice customers continued to grow rapidly, particularly digital TV (ADSL and satellite), for a 75% increase year-on-year to 2.5 million customers at 31 March 2009.

HCS France

There were 8.54 million consumer ADSL broadband subscribers at 31 March 2009, growing 12% year-on-year (+913,000 new subscribers). ADSL Multiservice continued to grow rapidly; at 31 March 2009 there were:

• 6.806 million Livebox rentals, an increase of 21% in one year, with Liveboxes representing 80% of the ADSL subscribers at 31 March 2009, up from 74% a year earlier;
• 6.135 million Voice over IP customers, an increase of 32% in one year, with Voice over IP representing 72% of ADSL subscribers and 90% of the Livebox rentals at 31 March 2009; and
• 2.166 million digital TV subscribers (satellite and ADSL television), a 69% increase from a year ago. At 31 March 2009, there were 316,000 subscribers to Orange satellite TV, introduced on 3 July 2008.

Content services continued to experience very strong growth:

• Video on Demand (VOD) services nearly quadrupled, with 7.7 million downloads in the first quarter of 2009 compared with 2.0 million in the first quarter of 2008.
• The “Orange foot” TV channel launched on 9 August 2008 and the “Orange cinema series” launched on 13 November 2008 accounted for a total of 363,000 subscribers at 31 March 2009, compared with 130,000 subscribers at 31 December 2008.

HCS Poland

The number of digital TV subscribers (satellite and ADSL television) quadrupled in a year to 198,000 customers at 31 March 2009.

HCS Spain

ADSL television services (IPTV) were up 32% to 99,000 customers at 31 March 2009.

France Télécom operational KPIs:

(in thousands)                    1Q07   2Q07   3Q07   4Q07   1Q08   2Q08   3Q08   4Q08   1Q09
                                 -----  -----  -----  -----  -----  -----  -----  -----  -----
France
  IPTV and satellite customers     745    837    975  1,149  1,282  1,389  1,603  1,909  2,166
  Pay TV subscriptions                                  543    644    638    759    898  1,138
Spain
  IPTV customers                    14     16     18     54     75     92     86     87     99
Poland
  IPTV and satellite customers       9     19     23     40     49     54     57    113    198
Total
  IPTV and satellite customers     768    872  1,017  1,243  1,407  1,535  1,746  2,109  2,463

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