Orange plans major mobile internet investment

Orange will invest over £400m in updating its mobile networks across Europe between 2011 and 2012 in anticipation of increased demand for internet services.

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Speaking at the Open Mobile Summit in London today, Orange executive VP Olaf Swantee told attendees the operator group will make data management and customer churn reduction its priority by 2015.

Swantee said Orange will spend €450m (£402m) in upgrading its network for improved internet services and that its cumulative capital expenditure between 2011-13 will be €18.5bn (£16.5bn).

“The amount we invest this year will be more than Apple and Google combined,” he said.

Swantee also told attendees 30% of Orange’s postpaid subscribers have smartphones with mobile internet plans, and that this was expected to rise sharply over the next four years.

“Data will account for 28% of Orange revenue in Europe by 2015,” he said. “We still have 70% of postpaid customers that are not on smartphones, not to mention the 50% that are on prepaid.

“We think that doubling [of mobile internet traffic] is certainly going to happen,” he added, predicting that this will generate over half of its profits by 2015.

This story first appeared on New Media Age. For more digital stories and analysis’ from NMA click here now

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