Greg Detre
@20.30+ Wednesday, 07 March, 2001
Oxford Union, Goodman library
2 weeks ago in Cannes at the GSM conference � always very scripted + multimedia � this is very scary
mobile phones as the golden nuggets in a Gold Rush
Orange was initially under pressure (shareholders, customers) to do as incumbents do things
2nd largest mobile operators in Europe � CEO
focus on people + the customer
how has his biographical history shaped Orange
launched in April 1994, 4th operator � nowhere else ever been 4 operators � very confused price-driven market, no customer champion
networks operated through middlemen service providers through shopfronts
complaints were always being passed on to the next level
everyone said that they had no chance of succeeding � the market isn�t big enough � everyone�s going to lose profitability
came from mobile phone companies in Hong Kong
in UK, only 7% are pure mobile, no fixed line � which he sees as the future
if you�re last in the market, you need to create a new category
differentiating brand, focus on customer
arguably the most recognised brand in mobile telecomms, even outside UK
best quality network
most successful IPO so far
great value for everyone
outperform industry, held up as a beacon
born in Germany, English father � left Germany at 2, then lived in England until 7 or 8 � directly after war � rationing and council housing
his Dad wanted to make a difference and improve things � so followed his German relatives to Canada to a tiling business
given him a travel bug, and likes to make sudden changes
wanted to become a doctor, read up in the library, became hugely hypochondriac, found out scared of blood
wanted to become a teacher, but not enough patience
hoping to pick up these aspirations in teaching and medicine in a very different way soon
didn�t finish degree � started off in hotel/hospitality, then moved and real estate, then picked up and left to go backpacking
never had more than 2 very good close friends
read - Clarke, Robert Heinlein (Stranger in a strange land), Asimov, Dick � psychology, supernatural, not management text books
anything that gave insight into mind/body/spirit, human behaviour and human limits
�You for ever� by T Lob siaanka � English plumber who pretended to live in Tibet
wanted to be in control of own destiny, so worked a lot � as a bus boy, maid in a hotel, desk clerk, graveyard shift, manual labour
Gooey � chinese dish-washer, obsessively cleaned and swept around the hotel
former wrestler, novels of Ayn Rand
reacted instinctively as bus boy to the needs of the customer
went to the UK after high school, came back to the University of British Columbia � was told by everybody that the future is in chartered accountancy � ended up with English Literature and Psychology
3 courses short of degree, applied for job as Credit Manager
new Financial Controller � throw out all the files and stuff, and if there�s anything important they�ll contact you � but it worked � took on bigger CFO job in Calgary, then became General Manager
eventually out of work for 6 months � became a very good real estate salesman but didn�t like having to sell things people don�t want
ended up back in hotel business � bad branding, so created best Italian restaurant (using the good chef there) and disco (good young people there)
chocolate cherries on the reservations counter and so based the branding on it
but got tired of Calgary after 5 years � had 2 very big mortgages � sold both properties (and their mortgages) for a $1, and walked away
gave everything up to go backpacking � 34 years old � only managed 6 months � became open and receptive to new experiences and opportunities
got a job offer with small Hong Kong paging + computer business (1984) � PCs weren�t that common then
the paging section was bought by Hutchison Wampoa, planned to go backpacking, but ended up with Hutchison � stayed for 8 years bringing all their telecomms divisions together
gave managers a lot of entrepreneurial freedom (as long as you produced returns), company expanded
met backpackers Richard Brennan (Orangeworld internet) and Graham Howe (CFO of enlarged Orange)
he�s been described as a brand visionary � but with Hutchison didn�t understand theory of branding, only intuitively
very strong traditions in HK, but not held back by them, love technology, can-do
wanted to open up branded retail outlets, decided to make the shops blue like the logo (but that�s the �colour of death� said the old people) � never worked consciously to create a brand, only to deliver a promise to customers
Hutchison UK team � �Rabbit� outgoing calls only � they never met a budget � building a dedicated mobile data network
told them to close rabbit, the resigning customers and the mobile data � keep the Microtel PCN network only � told the Board to write off �200m and invest further �700m � so he got the job � difficult time, bad publicity, lots of lay-offs
invited a HK reporter for breakfast � told him his intentions and he opened up � and then he was much more positive, helped morale and distribution and British press coverage
it all comes down to the network � it�s all about being able to communicate whenever, wherever, however � but he didn�t know how good the �700m network would be. so he wandered round the UK noting reception strengths
went back to Hutchison, asked for extra �250m, delayed the opening � needed 50% of the population contiguous coverage
lots of market research � researchers asked people what they wanted in the future � told them to go back asking them what they don�t like about current services, ask lapsed and discouraged users � then we can fix that
Orange was the first company to offer caller ID, which made the customer feel in control and had a very positive impact on revenue
churn rate of 15% per annum, much lower than competitors
needed a new brand to reflect customer-centricism � Orange had mixed support
developed a proprietary technology so that the customer could buy the phone, then register themselves at home on the air
first company to have a 100% high street retail presence
had to stop over-the-air registration through fraud � other companies fell foul of it
first per-second utilisation
late into the pre-pay market, no expiry dates on their vouchers
went public in 1996 � market cap $2.5b
3 ownership changes in 2000 � Mannesman, Vodafone (hostile, anti-competitive laws), France telecom - $26b
has this demotivated destabilised Orange and its staff � had the best 12 months of their history
Union title for Hans: future technology developments, relative to Industrial Revolution!!!
future: less about mobiles, more about creating and controlling one�s own worlds
phone �/span> access device, remote control for life services
smaller, battery life � ear studs, built into clothes etc.
eventually monitor your body for medical/fitness reasons etc.
voice-controlled
virtual personal electronic avatar � agent
the tech exists today
looking to offer practical services based on what the technology can deliver � common sense
fixed wire services will carry ultra-high band services � interactive 3D images on holo-walls
75% of the UK have mobile phones � not saturated � can go to 300% - can generate more revenue by selling off spare airtime
use Bluetooth to turn phones into electronic wallets
need to humanise technology � easy, simple, intuitive
e.g. Hal in 2001
ANANOVA � web-spidering technology, reformat the information for delivery to your device
life services � Orange music, entertainment, home, car, health etc.
doesn�t want to be CEO after the France telecom flotation � Western health services just aren�t working � interested in holistic health clinics � could be very commercially successful
staying on as special adviser at Orange
what other companies do you empathise/partner with?
have you read �Crossing the chasm�???
what next for you and for Orange???
aren�t your new ads a bit disturbing???
why didn�t you finish your degree???
didn�t self-registration add a high cost for Orange???
are you able to be your own man still, even though France Telecom now own you???
where does the holo tech exist today???
ever heard about the IMC???
what AI tech are you working on???
are you big enough to take on the tech projects you�re considering???
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how has the backpacking helped?
people think differently in every different culture
partly a language-related barrier
it�s about understanding your customer � different solutions
are you a part of the Orange brand?
Branson is very closely linked to the Virgin brand
he�s closely associated with Orange, within the industry, behind the scenes, maintaining brand promise
have you noticed an improvement in customer service attitude in the UK since 1992 when you moved here?
yes, there has been some improvement, but not relative to HK (excellent service with poor countenance) and the US (very smiley but poor service)
how much of Orange�s worth is due to the plasticity of the brand vs technology innovation?
3 or 4 years ago, an agency attributed most of the value to the brand
but Snook asked them how you can have a great brand if you don�t have the deliverables behind it, since the brand = the promise to the customer � you can�t divorce it that way
what was it about 3G that made it worth the money you bid for it?
3G is more than just a tech for delivering multimedia services � it�s about a bigger pie, bigger capacity, the spectrum
close to 10% of Orange�s revenue comes from short messages � they were first to introduce it
high speed data at >28.8 - customers are using that for 30 mins a day
packet-switching GPRS capability � don�t need to key anything in
short-term it�s voice, longer-term it�s data it�s the life services
will the connectedness of mobile devices (e.g. wearable) cause problems for mobile phone shops
not in the near future
what is your favourite colour?
blue, though I do like orange, prefer dark colours
how much is the R&D budget for Orange?
don�t know off the top of his head � encompasses different areas
organic or acquisition? and acquisition with whom?
to grow quickly, needs to be acquisition or merger
NVMO sublease, provide life services
funding will free up in about 12 months
logically should grow in Europe, then hub-spoke strategy in Asia
will mobile telephones be an indispensable part of life in the future
absolutely, but they won�t just be mobile phones
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you talked about humanising technology - do you see a growing backlash against mobile phones???
there will always be inconsiderate people
doesn�t see a backlash � in fact, he knows he�s won when there�s mobile-free signs in restaurants
fears about health � doesn�t think there�s anything in it � no substantiation through research for a decade � and by disinterested parties