In the fourth quarter 2007, electronic communications operators earned €11.0 billion in revenue on the end-customer market. Interconnection services and sales on the wholesale market between operators on the intermediate market represented €2.2 billion in additional revenue.

In the fourth quarter 2007, operators generated €10.0 billion revenue from electronic communications services alone on the end-customer market excluding related income (terminal sales and rental, directories, advertising, hosting, call centre management, etc.). This was 3.3% greater than the fourth quarter 2006.

The volume of traffic from fixed and mobile telephony services reached 53.7 billion minutes in the fourth quarter 2007, rising 4.1% over one year.

Fixed telephony and Internet

The number of subscriptions to telephone service reached 39.6 million at the end of 2007, of which 10.8 million were subscriptions to a broadband voice service (essentially subscriptions to IP on DSL). The number of subscriptions to VoIP services grew in 2007 at a strong rate (one million more each quarter on average), and these subscriptions now represent 27.4% of telephone subscriptions. The number of telephone subscriptions to dial-up access declined at the same time at a rate of 700 000 per quarter in 2007 and was 28.7 million at the end of the year.

A growing share of lines no longer support telephone service on the PSTN. These offers were created by operators (both alternative operators and the incumbent) using full unbundling or "naked ADSL" and concern close to 5.9 million DSL lines, with 3.4 million additional lines in one year. At the end of 2007, lines having only voice-on-IP service (DSL and cable) represented 18% of fixed lines compared with 8% a year earlier.

On the other hand, 14% of telephone lines supported two telephone subscriptions (a "classic" subscription on the PSTN and a subscription to a voice-on-IP service) in the fourth quarter, corresponding to 4.7 million lines. This proportion hasn’t risen in three quarters.

Certain "classic" telephone subscriptions on the PSTN, created through wholesale subscription sale offers (VGA), are now no longer invoiced to the end customer by the incumbent but by an alternative operator. At the end of 2007, 700 000 subscriptions, or 2.5% of narrowband telephone subscriptions, were concerned.

There were 4.9 million customers subscribing to telephony offers based on carrier selection (call-by-call selection and pre-selection) at the end of 2007, declining by two million over one year. This strong decline was due to a great extent to competition from telephony-on-IP offers but also, to a lesser extent, to the migration of subscribers from pre-selection to telephony offers resulting from VGA.

Revenue directly attributable to fixed telephony (revenue from subscriptions and calls) was €2.7 billion in the fourth quarter 2007, declining 3.8% over one year. The increase in the subscription price in July 2007 helped maintain telephone subscription revenue levels. On the other hand, at €1.1 billion, revenue from telephone calls (excluding public payphones and cards) was down 9.6% over one year in the fourth quarter 2007. This trend can be explained by the rapid decline in the volume of calls made on the PSTN (-15.3% over one year in the fourth quarter 2007) to the benefit of calls made using IP access (up 73.5% during the same period). In most cases, IP calls were included in an Internet package and were therefore not counted in call revenue.

Traffic originating on fixed phones (excluding public payphones and cards) reached 27.4 billion minutes in the fourth quarter 2007, for a 5.1% increase with respect to the volume of traffic in the fourth quarter 2006.

The share of IP calls in traffic originating on fixed phones rose from 23% at end 2006 to 38% at end 2007. This very rapid growth in traffic originating on IP access helped to offset to a large extent the decline in traffic on the PSTN.

IP traffic is growing especially towards destinations which enjoy so-called "unlimited calling" offers included in most multiplay packages. At the end of 2007, IP traffic represented 39% of domestic calls between fixed phones and 57% of fixed calls to international destinations, but just 15% of the minutes of fixed-to-mobile traffic (affected little by "unlimited" offers).

Subscriptions to telephony-on-IP service also lead to more intensive use than subscriptions to a "classic" telephony service: on average 5 hours and 37 minutes of calls for IP and 3 hours and 15 minutes for the PSTN per subscriber and per month in the fourth quarter 2007.

There were 17.1 million subscriptions to Internet at the end of 2007 (up 11.8% over one year). High-speed access represented nine out of ten Internet subscriptions, or 15.6 million. In one year, the number of high-speed accesses grew by close to three million (+22.5%). High-speed access using ADSL technology represented the vast majority with 14.8 million accesses at the end of 2007.

Revenue from high speed rose to €1.1 billion in the fourth quarter 2007 (+25.8% over one year) and represented 91% of all Internet revenue.

Mobile telephony

There were 55.3 million mobile telephony customers in France at the end of 2007, with a 3.7 million increase over one year. The annual growth rate was maintained throughout 2007 at a strong level of 7% (+7.1% in the fourth quarter 2007). Two-thirds of customers (65.6%) subscribed to a flat-rate formula rather than a "prepaid" formula.

The simplified number maintenance procedure put in place on 21 May 2007 led to a significant reduction in the time required to port a number, and a significant rise in the number of numbers ported during a quarter. In all, 327 000 mobile numbers were ported from one operator to another during the fourth quarter 2007 compared with 139 000 in the fourth quarter 2006 (+136.2% over one year).

Mobile multimedia services (access to mobile Internet, sending MMS) were used by 17.2 million customers in the fourth quarter 2007 or close to one in three customers.

In the fourth quarter 2007, revenue from mobile services reached €4.6 billion, growing by 6.4% over one year. The annual growth rate in revenue from mobile services (approximately 5 to 6% in 2007) was slightly greater than that of 2006 but was down sharply with respect to the growth rate of 8 to 10% seen in 2005. Revenue from mobile calls (€3.9 billion) grew 4% over one year in the fourth quarter 2007. The increase in revenue related to non-voice uses on mobiles was stronger with +13.9% for revenue from interpersonal messaging services and +36.3% for revenue from access to mobile Internet and multimedia services. These services generated €707 million in the fourth quarter 2007 and their contribution (15.5% of mobile revenue in the fourth quarter 2007) grew.

Mobile telephony traffic represented 25.9 billion minutes in the fourth quarter 2007. Mobile traffic saw a strong rise in 2006 with annual growth of approximately 15% per quarter, but a slowdown was clear beginning early 2007. The annual growth rate, which reached 8.6% in the first quarter 2007, declined by two points during each of the following two quarters, settling at 3.9% in the fourth quarter.

This slowdown was primarly due to slower growth in traffic to mobiles. For one thing, the annual growth rate of traffic exchanged by mobiles on the same network ("on-net" traffic), which represented more than half of traffic, has been declining sharply over the past two years. It fell from 30.8% in early 2006, to 8.2% in early 2007, and continued to decline throughout the year, reaching just 2.8% in the fourth quarter. Plus, growth in traffic to third-party mobile networks, which was strong in early 2007 (+22.6% over one year at the first quarter 2007), also saw a slowdown and was just 8.6% in the fourth quarter.

Growth in the volume of interpersonal messaging was very strong during the fourth quarter 2007. During the quarter, 5.5 billion messages were sent, or close to one billion more than during the previous quarter, for a 33.2% increase over one year. Mobile operator customers sent an average of 34 SMS each per month in the fourth quarter 2007 compared with year earlier.

Other market components

Revenue from added-value services reached €629 million in the fourth quarter 2007. The variation in this revenue, which was negative during the first first two quarters of 2007, was nul in the third quarter and became positive in the fourth quarter with a 3.4% increase.

Revenue from directory services (€41 million) saw moderate growth (+1.9% over one year) in the fourth quarter 2007. However, the number of calls to directory services continued to slide: 33 million calls were made during the fourth quarter 2007, or over 5 million fewer calls than a year earlier (-14.5%).

Revenue from capacity services has been slowing for two years. In the fourth quarter 2007, revenue from data transport declined by 1.2% over one year and the stronger decline in revenue from leased lines reached -8.6% over one year.

Revenue from electronic communications services sold by operators on the end-customer market reached €10 billion in the fourth quarter 2007, rising 3.3% over one year.

Close to half of this revenue comes from mobile services which represented €4.6 billion in the fourth quarter 2007, up 6.4% over one year.

Revenue from services sold on fixed networks (fixed telephony and Internet) reached €3.9 billion in the fourth quarter 2007, growing 1.7% over one year thanks to continuous growth in revenue from Internet services (+17.0% over one year). The Internet sector now represents over 30% of revenue from fixed services, and this new strength offets the decline in revenue directly attributable to fixed telephony (down 3.8% over one year in the fourth quarter 2007).

The volume of "voice" services (on fixed and mobile networks) equalled 53.7 billion minutes in the fourth quarter 2007, up 4.1% over one year.

The volume of calls originating on fixed networks (27.9 billion minutes in the fourth quarter 2007) rose 4.2% over one year. This is the strongest annual growth recorded in several years. IP traffic saw a very strong rise (+2.6 billion minutes in one quarter out of a total of 10.4 billion minutes), which explains this growth. IP represented 38% of the volume of minutes originating on fixed phones in the fourth quarter 2007.

The slowdown in the annual growth rate of the volume of calls originating on mobiles observed since early 2007 was confirmed in the fourth quarter. Growth in these volumes, which reached 8.6% in the first quarter, declined by two points during each of the following two quarters and declined yet again in the fourth quarter (+3.9%).

The contraction in dial-up Internet volumes accelerated throughout 2007 by more than 35%. The drop reached 44.1% over one year in the fourth quarter.

The number of SMS sent during the fourth quarter 2007 jumped to 5.5 billion messages or close to one billion more than the previous quarter.

Fixed network operators earned €1.1 billion in revenue on the intermediate market, up 9.4% over one year. This rise was due to strong growth (+38.9% over one year) in revenue related to wholesale high-speed access services (unbundling, wholesale bitstream offers, etc.) whose revenue reached €411 million in the fourth quarter 2007.

The decline in revenue from services related to telephone service (-1.6% over one year in the fourth quarter 2007) was contained, thanks in particular to the contribution of revenues from the wholesale subscription sale offer (VGA).

The rise in mobile operators’ volume of interconnection minutes (+19.1% over one year in the fourth quarter 2007) remained significant. On the contrary, the revenue generated by interconnection services (voice, SMS traffic etc.) fell by 6.3% over one year to €1.0 billion in the fourth quarter 2007. This was due primarily to the decline in voice call termination tarifs (21% drop for Orange France and SFR and 18% for Bouygues at 1^st January 2007), and in SMS termination prices (-30% in September 2006).

Notes:
- Interconnection covers all the services provided by one carrier to another under the terms of an interconnection agreement. In cases of mergers or takeovers, some of the revenue streams between the telcos disappear, which might account for decreases in revenues from one quarter to the next.
- Interconnection revenues and traffic volumes are not calculated on the basis of the same criteria, which makes a comparison between the two indicators unsuitable for estimating average prices (interconnection revenues include fixed revenues such as charges for connection links and intercarrier services).
- Please note that the interconnection figures shown above might be accounted for twice, particularly in the case of fixed operators.
- Wholesale broadband services include revenues from both LLU and bitstream or equivalent services

At the end of 2007, over 5 million lines had been unbundled, representing close to 15% of all fixed lines.

Close to three out of four unbundled lines (3.8 million lines) are fully unbundled. In one year, the number of fully unbundled lines grew by 1.6 million (+73.0%). At the same time, the number of partially unbunded lines declined by 460 000 and concerned only 1.4 million lines at the end of 2007. Some of the partially unbundled lines which disappear are migrated to full unbundling.

International traffic terminating on domestic fixed and mobile networks grew strongly. Growth was 29.1% over one year all networks combined.

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(1) This market segment is a subset of the overall market (cf. 1.2.1)

Note: Roaming-in is a service whereby a French mobile operator carries calls made and received in France by customers of foreign mobile operators. The revenue corresponds to the out-payments made between operators. The ratio of revenue to volume does not correspond to any specific tariff and particularly not to the price billed to the customer.

____________________________
(2) This market segment is a subset of the overall market (cf. 1.2.1)

There were 39.6 million subscriptions to a telephone service at the end of the fourth quarter 2007. For the past three years, growth in the number of telephone subscriptions (3.7% over one year in the fourth quarter 2007) was due entirely to the contribution of subscriptions to telephony service on IP which saw strong expansion.

At the end of the fourth quarter 2007, there were 10.8 million subscriptions to a broadband voice service, or 27.4% of all telephone subscriptions. Over one year, their number grew by 64.0% at a rate of one million additional subscriptions each quarter.

Voice-on-IP offers created by operators using full unbundling and wholesale "naked ADSL" offers are developing quickly. With these offers, the customer has only a subscription to a voice-on-IP service and no longer has a "classic" telephone subscription on the PSTN. At the end of 2007, this concerned 5.9 million DSL lines. In all (DSL and cable), lines with just voice-on-IP service represented 18% of all fixed lines. This proportion, which was previously just 8%, is growing.

Other subscriptions to a telephony-on-IP service can be added to an existing PSTN telephone subscription which is kept by the user. At the end of 2007, 4.7 million lines supported two subscriptions to telephone service, representing 14% of lines in service. However, this proportion, which until now had been growing, stopped rising. Telephony-on-IP offers sold by operators on the retail market, which correspond to these subscriptions, came from partial unbundling and wholesale "bitstream" offers (excluding "naked ADSL").

There were 28.7 million subscriptions to dial-up access (on analogue or digital lines and on cable) at the end of the fourth quarter 2007. In one year, their number declined by 2.8 million (or 0.7 million each quarter).

A growing number of subscriptions to telephone service on the PSTN are now billed by an alternative operator and not by the incumbent. These are based on the wholesale telephone subscription sale offer (VGA) and their number reached 700 000 at the end of the fourth quarter 2007, for 2.5% of dial-up access subscriptions.

Note:
- Subscription to telephone on IP service on xDSL lines without PSTN subscription: a subscription to telephone service on lines where low frequencies are not used to support voice service (by the incumbent or by an alternative operator). This is the case of offers to broadband voice services resulting from full unbundling and "naked ADSL" offers.
- Subscription to telephone on IP service on xDSL lines with PSTN subscription: a subscription to telephone service on lines where low frequencies are also used to support voice service, on the PSTN.
This is the case of telephone offers resulting from partial unbundling and "bitstream" outside "naked ADSL".

A full 687 000 numbers were kept through "porting" between fixed telephony operators in the fourth quarter 2007.

Telephony offers based on carrier selection were used by just under 5 million customers at the end of 2007 or 2 million fewer than a year earlier. The erosion in the popularity of these offers was strong in the past two years due to competition from telephony-on-IP offers, and reached close to 30% in the fourth quarter 2007. The migration of pre-selection subscriptions to subscriptions including a telephone subscription (VGA) must be added to this.

The number of subscriptions to call-by-call selection offers (1.0 million at the end of 2007) has dropped since early 2006 and this decline continued in 2007 at an annual rate of about 30%. The number of subscriptions to pre-selection (3.9 million at the end of 2007) has also contracted since early 2006. In 2007, the drop accelerated strongly with a decline of over 1.5 million subscriptions.

Note: The number of call-by-call selection customers only takes into account active subscriptions, while carrier pre-selection figures only take into account current subscriptions, net of cancellations.

Despite the decline in the number of "classic" subscriptions on analogue or digital lines (-8.9% over one year in the fourth quarter 2007), the rise in France Telecom's monthly telephone subscription tariff (+6.7% at 1^st July 2007) helped to prop up revenue from these subscriptions. At €1.5 billion in the fourth quarter 2007, global access revenue rose by 3.0% over one year thanks to the rise in income from subscriptions to IP telephony services. Revenues from access, subscriptions and additional services now represent 56% of all fixed telephony services income.

Note: In addition to revenues relating to access to the telephone service, access revenues also include subscriptions to IP telephony and those generated by supplementary services (such as calling line identification presentation, etc.).

Revenue directly attributable to telephone calls made on fixed lines (€1.1 billion) fell by 9.6% over one year in the fourth quarter 2007. This drop can be explained by the fact that a growing share of minutes was sent from IP access to the detriment of minutes sent on the PSTN (down 15.3% over one year in the fourth quarter 2007). However, telephony-on-IP access is invoiced differently, since IP calls are most often included in a high-speed Internet package which is billed to the customer and not counted as call revenue.

Note: Revenues from VoIP calls only include the charges billed by operators for such calls made on top of those included in a multiplay package. Therefore, this amount does not include the cost of the multiplay subscription, nor the charge for connection to a broadband telephone service.

Traffic originating on fixed lines (27.4 billion minutes in the fourth quarter 2007) was up 5.1% over one year.

The volume of domestic calls represented over 80% of the total volume of calls from fixed lines and rose 3.5% over one year in the fourth quarter 2007. The decline in the volume of domestic calls sent on the PSTN (approximately 18% over one year in 2007) was more than offset by the concomittant rise in volumes of domestic calls sent on IP (+67.3% over one year).

International traffic grew 40.6% over one year in the fourth quarter 2007. This traffic has been growing constantly over the past two years thanks to growth in the volume of international calls sent on IP which more than doubled during the same period. International PSTN traffic declined by just 7% during this period.

The volume in calls to mobiles grew slightly after several quarters of stagnation or declines (1.5% over one year in the fourth quarter 2007).

Note:
- The Observatory distinguishes between calls originating on IP telephony services and other voice calls. Still, while the volume of VoIP calls covers all of this traffic observed on the end market, revenue covers only invoiced VoIP traffic (for example in addition to a multiplay package).
- Volumes and revenue from calls originating on VoIP services are counted in each of the market segments (long distance, international and to mobiles).

The development in telephone calls sent originating on IP access was very quick, reaching +73.5% over one year in the fourth quarter 2007. The share of IP telephony minutes in the total volume of calls originating on fixed phones increased from 23% to close to 38% in one year.

The share of IP traffic in calls originating on fixed networks is rising regardless of the destination of the calls. However, domestic calls to fixed phones and international calls (which benefit from so-called "unlimited" offers included in most multiplay packages) were favourites. So, 39% of domestic calls, and most importantly, 57% of minutes for international calls were made from IP subscriptions. Just 15% of fixed-to-mobile call minutes were sent on IP.

Notes:
- The volume of traffic originating on a fixed line includes calls from landline telephones, public payphones and prepaid phone cards.
- The seasonally adjusted values for this data can be found in the "Séries chronologiques" spreadsheets available on the ARCEP website

The total volume of minutes from calls made on fixed lines (calls, public payphones and prepaid cards) saw strong seasonal variations. With 27.9 billion minutes in the fourth quarter 2007, it was almost 4 billion minutes higher than in the previous quarter. When seasonally adjusted, the global volume in fixed traffic has been stable for the past three years. The fourth quarter level, which saw sharp growth, seems to have put an end to this trend.

The number of public payphones in service continued its regular decline of the past two years at a rate of 10 000 per year (or a 5.9% drop over one year in the fourth quarter). The erosion in revenue and in the volume of calls generated by this activity was even sharper (-30.3% and -9.5% respectivly during the same period).

High-speed accesses predominate on the Internet access market. They represented 15.6 million subscriptions out of the 17.1 million total on the Internet access market at the end of 2007 (or 91.2%) and their growth remained at a high level in the fourth quarter 2007 (+22.5% over one year). In one year, close to three million additional high-speed subscriptions were taken out.

At €1.1 billion, revenue from high-speed Internet access rose 25.8% over one year in the fourth quarter 2007 and represented 91.1% of all Internet revenue. The average invoice for a high-speed Internet subscription was €23.90 excluding VAT per month and varied little (+1.5% over one year in the fourth quarter 2007).

Dial-up Internet contracted at a rate greater than 40% over one year in the number of accesses in service, in volume of connections and in revenue generated. The average invoice for a dial-up subscription was €7.80 excluding VAT per month and declined 8.5% over one year in the fourth quarter 2007.

Note: There may be a time lag between the delivery of a service on the wholesale market (LLU or bitstream) and its actual availability on the retail market. A comparison between the data relating to these different markets might reflect this.

Note: The "Other Internet services" item corresponds to related ISP revenues such as web hosting or revenues from online advertising. Revenue from the sale and rental of telephones and terminal equipment is included in the "Sale and rental of telephones and terminal equipment by fixed operators and Internet service providers" item.

Note: This indicator covers subscriptions, which are "eligible" for television services, i.e. those where subscribers are able to activate this type of service, regardless of the number of channels available or the pricing plan involved. It takes into account both standalone subscriptions and those which are part of a "multiplay" service package, which includes access to one or more other services besides television (Internet, telephone service).

There were 55.3 million customers to a mobile telephony service at the end of 2007. Two-thirds of these customers (65.6%) bought flat-rate packages.

Annual growth in the number of mobile telephony customers reached 7.1% over one year in the fourth quarter 2007. This growth was maintained at a high level of approximately 7% throughout 2007, but is down slightly with respect to that recorded during the previous two years (7.5% to 8% annual growth).

The Christmas holiday period corresponds to a seasonal peak in the use of multimedia services (access to "mobile Internet" services, sending of MMS, etc.). Close to one-third of customers (17.2 million) used multimedia services in the fourth quarter 2007 (+14.0% over one year).

The new mobile number portablity procedure implemented on 21 May 2007 led to a major reduction in the time required for porting (fewer than 10 days compared with two months previously). This evolution saw a sharp increase in the number of mobile numbers ported from one operator to another during one quarter. In the fourth quarter 2007, the number of numbers ported (327 000) more than doubled compared to the fourth quarter 2006.

Notes:
- The number of active multimedia users is defined as the number of customers (contract or prepaid subscribers) who have used a multimedia service such as Wap, i-Mode, MMS or email (SMS messages are not covered by this definition) at least once in the past month, regardless of the type of bearer technology used (CSD, GPRS, UMTS, etc.). Scope: Mainland France and overseas dependencies.
- The number of ported numbers is defined as the number of telephone numbers effectively ported to another operator (numbers activated by the receiving operator) during the course of the quarter in question. Scope: Mainland France and overseas dependencies

Data transport services on mobile networks (interpersonal messaging services, mobile Internet access services and multimedia services) generated €707 million in income in the fourth quarter 2007. The contribution of this revenue to total income from mobile services is up (15.5% in the fourth quarter 2007 compared with 13.5% a year earlier).

Growth in revenue from "non-voice" uses of mobile telephones was strong: 13.9% over one year for interpersonal messaging services and 36.3% over one year for access to mobile Internet and multimedia services. Growth in revenue from mobile voice calls was just 4.0% over one year.

The volume of traffic originating on mobiles equalled 25.9 billion minutes in the fourth quarter 2007. After seeing growth of approximately 15% throughout 2006, the annual growth rate of traffic originating on mobiles was down sharply throughout 2007. The annual growth rate fell from 8.6% in the first quarter 2007 to 6.6% in the second quarter, to 4.6% in the third quarter and to 3.9% in the fourth quarter.

This slowdown in the volume of traffic was primarily related to the continuous slowdown for over a year in the growth of volume of calls exchanged between mobiles on the same network ("on-net" calls) which represented more than half of the volume of traffic originating on mobiles. The annual growth rate of on-net traffic which was 30.8% over one year in early 2006, and 8.2% in early 2007, continued to fall throughout the year to just 2.8% in the fourth quarter 2007.

Although stronger, growth in the volume of mobile calls to third-party mobile networks also saw a definite slowdown in 2007. Their growth which had been strong early in the year (22.6% over one year in the first quarter) was just 8.6% over one year in the fourth quarter.

The volume of mobile-to-fixed calls has been falling since early 2005. Still, this drop progressively slowed throughout 2007 and seemed to have halted at year end (-0.1% over one year in the fourth quarter).

(The seasonally adjusted values for this data can be found in the "Séries chronologiques" spreadsheets available on the ARCEP website)

The number of interpersonal messages (SMS and MMS) sent was particularly high in the fourth quarter 2007 at 5.5 billion compared with 4.2 billion in the fourth quarter 2006, for a 32.5% increase over one year.

On average, a mobile operator customer sent 34 SMS per month or 7 SMS more than a year earlier (+24.5%). SMS use was twice as strong with customers having a flat-rate subscription than with customers using a prepaid card (40 and 20 SMS sent per month respectively).

(The seasonally adjusted values for this data can be found in the "Séries chronologiques" spreadsheets available on the ARCEP website)

With €629 million in the fourth quarter 2007, revenue from added-value services was up 3.4% over the fourth quarter 2006.

Once again, "voice and telematics" services represented over 80% of this revenue, but the share of revenue from data services is growing (17.4% in the fourth quarter 2007 compared with 12.4% a year earlier).

During the quarter, 1.3 billion calls were made to "voice and telematics" services, of which 1.1 billion were from fixed phones.

* This corresponds to all amounts billed to customers by operators, including outpayments from operators to service providers. Data value-added services include premium-rate services such as those on the Orange "Gallery" portal, push services, chat rooms, weather forecasts, TV game shows, horoscopes, ringtone downloads, etc.

The number of calls to directory services numbers was down. With 33 million calls sent in the fourth quarter 2007, the decline was 14.5% over one year, which equals over 5 million fewer calls compared to the fourth quarter 2006.

The volume of calls to directory services represented 72 million minutes in the fourth quarter 2007. Two-thirds of these minutes come from calls from mobile telephones.

Note: Directory information services include the 118xyz numbers in use since November 2005 and the short numbers used to access reverse lookup directory services (3288, 3217 and 3200) or international directory services (3212).

Revenues from leased lines may be accounted for twice as the figures include operator-to-operator sales. These sales may represent up to 29% of total leased-line revenues.

Revenue from terminal sales and rentals represented €817 million in the fourth quarter 2007 and was up sharply (+23.0% over one year). Besides a significant seasonal effect due to Christmas sales which benefit primarily mobile operators, revenue from mobile operators’ sales (€603 million or 74% of terminal sale revenue) jumped 28.6% in one year.

Note: Revenue from mobile packs and telephones given here include the commission paid to distributors.

The average monthly bill per fixed line is calculated by dividing the revenue from calls originating on fixed lines (line rental, call charges and Internet service charges) for quarter N by the estimated average number of fixed lines in existence for quarter N, and then by the number of months. (See the box on page 28 for an explanation of the concept of a "line")

The average monthly bill per mobile customer is calculated by dividing the revenue from mobile telephony (voice and data revenues, including roaming-out, excluding revenue from incoming calls) for quarter N by the estimated average number of mobile customers for quarter N, and then by the number of months. This indicator, which does not include interconnection revenues, or those from value-added services, is not the same as the traditional Average Revenue Per User (ARPU) indicator.

The average monthly volume of traffic per fixed line is calculated by dividing the volume of traffic (PSTN and IP) for quarter N by the estimated average number of fixed lines in existence for quarter N, and then by the number of months.

The average monthly volume of traffic per mobile operator customer is calculated by dividing the volume of mobile telephony traffic (including roaming-out) for quarter N by the estimated average number of mobile customers for quarter N, and then by the number of months.

The average number of SMS messages per customer is calculated by dividing the number of SMS messages for quarter N by the estimated average number of customers for quarter N, and then by the number of months.

The average monthly bill per PSTN subscription is calculated by dividing the revenue from line rental and calls made from PSTN fixed lines (i.e. excluding VoIP revenues) for quarter N by the estimated average number of subscriptions for quarter N, and then by the number of months.

The average monthly bill per subscription to an IP telephony service is calculated by dividing the revenue solely from IP calls billed (i.e. those made on top of those included in a multiplay package) for quarter N by the estimated average number of subscriptions for quarter N, and then by the number of months.

The average monthly bill per dial-up (or broadband) Internet subscription is calculated by dividing the revenue from the dial-up (or broadband) Internet connections for quarter N by the estimated average number of customers for quarter N, and then by the number of months.

The average monthly volume of PSTN (or IP) traffic is calculated by dividing the volume of PSTN (or IP) traffic for quarter N by the estimated average number of subscriptions to a PSTN (or IP) telephone service for quarter N, and then by the number of months.

The average monthly volume of dial-up Internet traffic is calculated by dividing the volume of dial-up Internet traffic for quarter N by the estimated average number of subscriptions to a dial-up Internet service for quarter N, and then by the number of months.

Average number of customers for quarter N: [(total number of customers at the end of quarter N + total number of customers at the end of quarter N-1) / 2]