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Telecommunications equipment industry

France Telecom Transforms into France Telecom S.A. in accordance with French Law

Strategic Insights

— 1 min read

As of July 26, 1996, France Telecom undergoes a significant transformation in accordance with the French law of that date, restructuring itself into a French law corporation, France Telecom S.A. This event marks a crucial step in the company's preparations for the opening of the telecommunications sector to full competition on January 1, 1998. The new legal status of France Telecom S.A. aims to promote a stable, balanced, and dynamic development of the French telecommunications market. France Telecom is responsible for providing universal telephone service at an affordable cost throughout the country and is committed to driving successful growth throughout the French telecommunications sector.

Key Takeaways:

  • France Telecom's transformation into France Telecom S.A. allows the company to adopt a new legal structure, one billion shares, and a partial stake to be sold to the public in the spring of 1997.
  • The company now has a general assembly of shareholders, a board of directors, and a chairman and CEO (Michel Bon).
  • The creation of an independent telecommunications regulatory authority, ART, in January 1997, is a complementary step to France Telecom's transformation, securing the stability and development of the French telecommunications market.
  • Despite its legal transformation, France Telecom's relationship with its customers remains unaffected.
  • The company aims to maintain its position as a leading player in the fully open global telecommunications market.
  • In 1996, France reformed the regulatory framework governing the telecommunications sector, and France Telecom's transformation is a key element in this process.
  • France Telecom's new corporate structure will allow it to seize opportunities for growth and development in the global telecommunications market.

Statistics:

  • $29.6 billion: France Telecom's 1995 consolidated revenues.
  • $1.8 billion: France Telecom's 1995 net income.
  • 32 million: The number of active telephone lines in service operated by France Telecom.
  • 1 billion shares: The number of shares France Telecom S.A. has, held by the French government, with a partial stake to be sold to the public in the spring of 1997.

Sources:

  • PR Newswire: "France Telecom Transforms into France Telecom S.A. in accordance with French Law" (December 31, 1996)
  • France Telecom S.A.

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