Orange actively promotes AI business transformation and digital innovation and continuously changes its business model!

In November 2023, Orange Business held a press conference as the telco strengthens its position as Europe's leading network and digital player by leveraging its next-generation capabilities combined with expertise in cross-border partnerships and platforms. Integrator strategy. Facing a sharp decline in traditional services such as fixed-line voice, the telecom operator is betting on a new range of ICT services built around artificial intelligence (AI), cloud and cybersecurity to provide more Agile and future-proof services.

Orange is transforming its business model to keep up with the latest trends and drive growth in digital services revenue

Orange has identified five major trends currently shaping the business - Perma-disruption, AI, cloudification, trust society and green mission - and as a result, the telco is actively developing a range of innovative digitally native services , to adapt to the rapidly changing telecommunications and technology landscape.

Many telcos are wary of investing in new ICT and digital services due to low profit margins and unclear long-term profitability prospects, but Orange Business is trying to break out of its natural comfort zone and build a strong presence in a market dominated by specialized digital native services companies. Growth in dominant areas. The telecom company's digital services revenue has been growing (see Figure 1). Orange Business chief executive Aliette Mousnier-Lompre insists its business transformation is on track and Orange Business will return to profitable growth in 2025.

Figure 1: Oreange’s IT and integration revenue. (Unit: billion euros)

Enter the era of trusted AI with a responsible attitude

After realizing the importance of AI and its impact on every aspect of network connectivity and digital business, Orange business has placed data-driven intelligence and AI at the core of its innovation strategy. The telecom operator has set three core priorities around AI and data:

·Make the network smarter. The operator aims to develop an AI algorithm that predicts traffic congestion by analyzing and learning the behavior of radio quality indicators across multiple cells. In addition, AI-based tools can reduce network energy consumption by analyzing usage data of individual cells on the 5G network.

·Improve operational efficiency. AI is being used to improve the efficiency of its mobile network antenna deployment in Spain. Additionally, in France, Orange developed AI-assisted diagnostic tools to test consumer fiber optic boxes. This helps avoid service interruptions, which helps reduce costs.

·Improve customer experience. In 2019, Orange launched Djingo, a voice-controlled customer support service. The telecom operator has since integrated Djingo into its Orange Bank app and voice-controlled TV remote controls in the French market.

In September 2023, Orange Business became one of Microsoft’s partners to join the Early Access Program (EAP) for a new product called Microsoft 365 Copilot, an AI-based assistant service that will be integrated into Microsoft 365 series of applications. Orange has brought together testers from 12 countries to use Microsoft 365 Copilot in different scenarios, environments and job roles and provide comprehensive feedback on their experience. While Orange does not sell licenses to Microsoft products, it can work with Microsoft or any other global software company to develop and sell a range of applications, tools and solutions.

Orange is not only actively exploring how to utilize basic models based on AI, but also has been exploring the potential challenges brought about by adopting AI, including issues related to security and data privacy, and connectivity. During early experimentation, the AI ​​will take responsibility for a range of issues, even if the responsibility lies in other areas (e.g., the connectivity layer). In the press conference mentioned at the beginning, Orange emphasized the importance of being transparent about any potential issues and possible causes, in order to maintain customer trust and promote the development of an effective AI assurance ecosystem, in which Orange hopes to play an important role in the system.

Simplifying and streamlining B2B business positioning through Evolution Platform is core to Orange Business’s transformation

Orange places core “digital first” principles at the foundation of its customer-facing network, known as the Evolution Platform, leveraging its operating model, internal expertise and partner contributions to bring together cloud , connectivity and security capabilities. Orange Business has 50 Evolution Platform Points of Presence (PoP) globally and as part of its Next Generation International Network (eNGINe) transformation plan, it aims to expand to 100 PoPs globally by 2025. To make its network more flexible and efficient, the PoP is located on Orange's Tier-1 global backbone network, close to customers and cloud service providers, reducing application and service latency and providing required business agility.

Orange Business held a press conference in November 2023 and announced the launch of a new service. Orange Business and VMware have announced a fully embedded, flexible SD-WAN offering within their Evolution Platform. B2B customers can use the Evolution Platform to access a catalog of products, including Flexible SD-WAN in partnership with VMware, through a self-service console or API. Automation and service chaining in the platform are designed to simplify the management of customers' digital infrastructure to enable secure user-to-cloud, cloud-to-cloud connectivity, and voice services. The new service also supports end-to-end visibility and service assurance.

While Orange has made impressive progress in advancing its capabilities in core digital areas, the process can be quite challenging and fraught with uncertainty. Omdia senior analyst Diana Gorelik noted that the telecom operator needs to continuously review and update its investment strategy to promote its business transformation agenda and align the quality, cost and coverage of its digital service offerings with the business positioning of digital native majors and hyperscalers. competitive while maintaining a sustainable cost structure.

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