Orange recently held its research and innovation event, Orange OpenTech 2024, at the Orange Gardens campus near Paris. This viewpoint highlights key technological innovations showcased during the event.
Omdia view
Summary
Orange OpenTech 2024 showcased several innovative demos using network Application Programming Interfaces (APIs) and more than 25 AI-based solutions. Orange coordinated its event with the launch of its “Live Intelligence” generative AI (GenAI) portfolio and also announced a partnership with Meta and OpenAI to process and fine-tune AI LLMs for African languages. Compared to last year’s event, the increased number of demos in APIs and use cases involving AI solutions in the deployment stage demonstrated Orange’s progress with the integration of these technologies into practical and operational customer solutions.
Orange accelerates its API initiatives
During the event, Orange showcased the “API Playground” with a range of demos, including home quality on demand (app performance diagnostic and improvement), network API-driven incident response, population density analytics, and direct carrier billing.
In September 2024, Orange joined a newly formed JV with 11 telcos and Ericsson. The main goal of this alliance is to open networks to make advanced network capabilities easily accessible through a global platform for combined APIs. This venture will deliver APIs that are compliant with CAMARA (an open-source project driven by GSMA and the Linux Foundation) to a wide circle of developer platforms. Orange does not think exclusivity is the best way forward, and welcomes the establishment of other JVs and partnerships with similar aims, as healthy competition will get the market started and facilitate the growth of investment at scale.
Earlier in May 2024, Orange signed up to use Nokia’s Network as a code platform with a developer portal. The platform, which was launched in September 2023, aims to boost advancement in 5G applications. For example, one of the APIs that was showcased during the event, called “network API-driven incident response,” has been developed using Nokia’s platform. This API solution is in the deployment stage and comprises two other APIs: a quality-on-demand API developed in collaboration with Radisys (the US-based technology company), which facilitates network adjustments to prioritize the quality of internal video surveillance streams from the location where the suspected incident occurred; and a second API, developed with Innova Solutions (the US-based digital transformation solutions provider), which aims to warn people located in the vicinity of the suspected incident.
The telco believes that the value extends beyond immediate API monetization: it is also about fostering an expansive platform ecosystem where Orange wants to play a pivotal role. Telcos and other participants of this complex ecosystem look for multiple routes to develop and sell their API-based solutions.
Orange pushes for telecom innovations with diverse GenAI initiatives
The event showcased multiple exhibits highlighting AI-powered solutions such as, for example, 5G GenAI assistant, which is in the development research stage, and aims to facilitate network management featuring LLM, support tools, and a monitoring interface.
Orange coordinated the event with the announcement of its new “Live Intelligence” GenAI portfolio. This multi-LLM GenAI service targets enterprises of all sizes in France, and will eventually be rolled out across Europe. Importantly, this GenAI solution was tested by 50,000 of Orange’s employees before being offered as an external service. This way, the telco ensures it delivers a reliable solution that has passed quality assurance and user journey optimization during internal integration. This approach increases the likelihood of the successful adoption of this service by Orange’s external customers.
Orange boosts digital transformation in Middle East & Africa (MEA) and promotes African languages in AI
During the Orange OpenTech event, Orange announced its partnership with OpenAI and Meta to fine-tune AI LLMs to process selected African languages. From 1H25, this initiative will kick off by integrating the West African languagesWolof and Pulaar. By adapting OpenAI's “Whisper” speech model and Meta's “Llama” text model with a wide range of language samples,Orange intends to boost its ability to interpret these regional languages.
MEA leads the way for Orange’s growth
Orange reported that its revenue grew by 7% year-on-year (YoY) for 9m24 to €5.6bn thanks to positive commercial momentum in all segments (see Figure 1), including Orange Money with 37.1 million customers (up 17.6% YoY). Orange Money is Orange’s flagship mobile-based money transfer and payments B2C business with a presence across 18 countries in the region. Orange Money facilitates participation in the financial system, which is particularly relevant for MEA users with little or no access to banking services.
Figure 1: Orange's MEA revenue (€bn) and YoY growth (%), 1Q22–3Q24
Source: Omdia
This recently announced project, which is aimed at embedding African languages within LLMs, facilitates the growth of digital inclusion in Africa and helps Orange to grow its presence in the region by enhancing its brand image and fostering opportunities for customer growth and service expansion, both existing and new.
How and when do Orange's innovative strategies translate into tangible revenue gains?
While many telcos are cautious about investing in new ICT and digital services due to low margins and unclear long-term profitability prospects, Orange Business is trying to break out of its natural comfort zone and grow in areas that have been filled predominantly by specialist digitally native service companies.
Orange Business revenue declined by 1% YoY for 9m24 primarily due to a decline in its legacy voice services (see Figure 2). However, the IT & Integration services segment rose by 5% YoY to €2.8bn for 9m24. EBITDAaL declined by 11% YoY in 1H24 to €277m.
Figure 2: Orange Business revenue, 1Q23–3Q24 (€bn)
Source: Omdia
Scalable revenue generation from AI-driven initiatives will come gradually, and Orange remains cautious about speeding the process and overcommitting resources without having clear monetization prospects. However, the telco remains confident that the business transition is going according to plan and that Orange Business will return to profitable growth in 2025.
Appendix
Further reading
“Orange, Telefónica, and Vodafone target B2B growth with AI, cybersecurity, and cloud assets” (December 2024)
“Orange is looking to strike a perfect balance between its investment and revenue generation from AI-powered networks” (November 2024)
Digital Profile: Orange – 2024 (August 2024)
Author
Diana Gorelik, Europe Service Provider Markets
