PART3 2.2 Telecom Spotlight (Orange) Created in: 1988 Headcount: 156,000 Net Income: 1.068 USO Headquarters: France Net Revenue: 44.948 USO R&D investment: 0.848 USO Orange, one of the largest telecom operator, is ac- tively engaging with startups to develop innovative solutions quickly, close to the needs of the customers and in real time. Today, the main challenge for Orange is the weaken- ing of the economic model by the over-the-top ser- vices (OTT), the decline of the average revenue per user (ARPU) and the new competitors like GAFA (Google, Apple, Facebook, Amazon) which are en- tering the market by offering connectivity via bal- loon-powered internet access (Google) or via so- lar-powered Internet drones (Facebook). By engaging with startups as early as possible, Orange gains time to detect tomorrow's trends, to inoculate these innovations and practices into the DNA of Orange. Two of the main success stories have been through the participation in a music plat- form Deezer where it is a minority shareholde~ and owning 100% of Dailymotion, a video platform. A music platform such as Deezer with the premium service is one of the tools used by telecom compa- nies to reduce the churn rate and to increase the ARPU. 1. ENGAGING THE STUDENTS COMMUNITY Oran e Tunisia Develo ers' Pro ram supports young talents who develop their own mobile appli- cations. Three years after the launch, 2,800 students have been trained and 50 applications have been created. INSEAD #500CORPORATIONS 42