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Encyclopedia > Belgacom

Updated 192 days 16 hours 39 minutes ago.
Belgacom
Type Autonomous public-sector company
Founded 1930
Headquarters Brussels, Belgium
Key people Didier Bellens, President and CEO, Theo Dilissen, Chairman of the Board of Directors
Industry telecommunications operator
Revenue € 6.100 billion (2006)
Website www.belgacom.be

The Belgacom Group, composed of Belgacom NV/SA and its subsidiaries, is the leading telecommunications company in Belgium. Image File history File links Question_book-3. ... Image File history File links No higher resolution available. ... Autonomy is the condition of something that does not depend on anything else. ... < [[[[math>Insert formula here</math>The public sector is that part of economic and administrative life that deals with the delivery of goods and services by and for the [[government </math></math></math></math> Direct administration funded through taxation; the delivering organisation generally has no specific requirement to meet commercial... Look up company in Wiktionary, the free dictionary. ... For other places with the same name, see Brussels (disambiguation). ... TATA Engineering and Locomotive Company A telephone company (or telco) provides telecommunications services such as telephony and data communications. ... Look up revenue in Wiktionary, the free dictionary. ... A website (alternatively, Web site or web site) is a collection of Web pages, images, videos or other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN. A Web page is a document, typically written in HTML...

Contents

[edit] Group structure

The Group is divided into three main fields of activity:

  • Fixed-Line Services (FLS)
  • Mobile Communications Services (MCS)
  • International Carrier Services (ICS)

[edit] Fixed-Line Services (FLS)

These activities are mainly provided by Belgacom SA. They are part of a full range of voice, data transmission and Internet services over the fixed line for both residential and professional customers.


Belgacom SA is the main provider of connectivity services in Belgium, offering a range of services to companies and private individuals.


In May 2005, Belgacom SA ventured into the world of television with the launch of Belgacom TV, the first digital television offer in Belgium. This launch enabled the Belgacom Group to become a fully-fledged “quadruple play” operator (fixed telephony, Internet, mobile telephony and television). During summer 2005, Belgacom launched Belgacom TV, the first digital TV offer in Belgium. ... In telecommunication, Telephony encompasses the general use of equipment to provide voice communication over distances. ...


[edit] Mobile Communications Services (MCS)

These activities are provided by the subsidiary Belgacom Mobile, better known under its Proximus brand. This subsidiary, which since mid-August 2006 is wholly owned by the Belgacom Group (previously Vodafone had a 25% stake in Belgacom Mobile). Vodafone Group Plc is a mobile network operator headquartered in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about £84. ... Proximuss corporate logo since 2005. ...


Proximus offers a wide range of mobile communications services to residential and professional customers in Belgium.


In 2005, Proximus became the first mobile operator in Belgium to introduce UMTS (3G) services for the general public.


[edit] International Carrier Services (ICS)

These activities of the Belgacom Group are provided by its subsidiary Belgacom International Carrier Services. 72% of the company is owned by belgacom SA and 28% by Swisscom Fixnet.


The company provides voice and data capacity and connectivity services to telecommunications operators around the world.


It is now the world’s eighth-largest voice-traffic operator, and the world leader in the field of signaling services for mobile operators.


[edit] Background

[edit] The start of telephony in Belgium

In 1879, the Belgian telegraph service installed a telephone line at the Parliament. That same year, several private contractors submitted requests to operate the telephone networks in various Belgian cities. Telegraphy (from the Greek words tele = far away and grapho = write) is the long distance transmission of written messages without physical transport of letters, originally over wire. ...


The lack of legislation during the first few years of operation reduced the telephone network’s chances of developing. It also forced the Belgian authorities to develop a legislative framework to regulate the operation of telephony in Belgium. Legislation (or statutory law) is law which has been promulgated (or enacted) by a legislature or other governing body. ...


In 1896, the whole telephony sector passed into the hands of a public company. In telecommunication, Telephony encompasses the general use of equipment to provide voice communication over distances. ...


In 1913, a large portion of Belgium was accessible by telephone. Although the number of subscribers was still small, the majority of railway stations, post offices and telegraphs were equipped with public telephone booths. For other uses, see Telephone (disambiguation). ...


[edit] After World War I: the shift to an autonomous public-sector company

World War I had caused a complete and utter suspension of telecommunications in Belgium. “The Great War ” redirects here. ...


One of the reasons for this was the financial dependency of the public company. The damage caused during the war and the dismantling of parts of the networks meant that colossal investments were needed to manage the telegraphs and telephones.


The national telegraph and telephone company (RTT) was set up on 19 July 1930. The public-sector company thus became autonomous: it was no longer dependent on annual State budgets and was authorized to carry out its own management.


[edit] Inclusion of the RTT in the State industrial policy

When the RTT was created, huge sums were invested in the Belgian telephone network. More and more sectors of society now had access to telephony. For other uses, see Telephone (disambiguation). ...


At the same time, another development was unfolding that would quickly entail a major expense for the company. During the economic crisis of the 1930s, the State would involve the RTT in its industrial and employment policy. In an attempt to reduce the high unemployment rate in the sector the State forced the entire Belgian telephone network to become automated.


This development strongly restricted the autonomy of the RTT. Although the law of 1930 explicitly stated that the company could draw up and implement an investment plan in an autonomous manner, by imposing its employment policy, the State was going against the basic principle of the law. After the war, this would soon become a structural problem for the RTT. Autonomy is the condition of something that does not depend on anything else. ...


[edit] From a leading-edge company to crisis: the RTT in the post-war period

After World War II, the RTT was faced with considerable damage and the dismantling of part of its networks. To give a quick boost to the sector, the State decided to intervene financially. Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki Tōjō Casualties Military dead: 17,000,000 Civilian dead: 33,000...


During this period, the demand for telecommunication services increased at an alarming rate. The number of subscribers quickly rose from approximately 350,000 in 1946 to 522,000 in 1951 and 1,049,000 in 1965. This growth in the customer base led to a very high rate of investment. Thanks to this, towards the end of the 1960s, the RTT found itself at the forefront of social and technological development.


But this expansionist approach had a negative side. From the late 1960s, the losses began to accumulate. And the global economic crisis in 1973 did not help matters: the company’s financial situation only worsened. This situation would lead the RTT to carry out major reorganization programs during the mid 1970s.


During the 1980s, it became clear that the telecommunications sector would become one of the key development poles at the end of the 20th century. Thus, in 1981, the RTT management began a major reorganization to solve certain structural problems within the company.


During that period, another player entered the scene. In 1987, the European Commission published its Green Paper on telecommunications, which focused on liberalization.


[edit] The 1990s: the Belgacom law and the evolution of the sector under European influence

The Green Paper of 1987 was incorporated into the Belgian law of 21 March 1991, which created a new type of public-sector company with greater management autonomy. The Belgian telecommunications sector was thus reorganized and saw the creation of Belgacom, an autonomous public-sector company.


This law aims to create an environment that is favorable to the competitive development of the telecommunications market in Belgium. From now on, a management contract had to define the prerogatives of the company and the public authorities in order to guarantee the offer of a certain number of general utility public services and a wider management autonomy than that provided for in the law of 1930.


In 1994, the European convergence process began to accelerate. In a new Green Paper, the European Commission declared that the operation of the networks and telephony must also be open to competition. For other uses, see Europe (disambiguation). ... In telecommunication, Telephony encompasses the general use of equipment to provide voice communication over distances. ...


1994 was also the year in which Belgacom founded Proximus, Belgium’s first mobile network. On 1 July 1994, this activity, as well as the old analog Mob2 system, was transferred to a subsidiary, Belgacom Mobile, with the following shareholding: 75% Belgacom – 25% Air Touch, then Vodafone in 1999. Proximuss corporate logo since 2005. ... Vodafone Group Plc is a mobile network operator headquartered in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about £84. ...


At the same time, Belgacom faced competition by forming partnerships with Ameritech, Tele Danmark and Singapore Telecom. Various Belgian financial institutions responded by forming a consortium, which was called ADSB. The Belgian State holds 50.1% of the shares and therefore remains the main shareholder. Ameritech (American Information Technologies) is a U.S. telecommunications company that arose out of the 1984 AT&T divestiture. ...


The BeST plan, which was mainly aimed at restructuring the company and dividing it into four “business units,” was implemented in 2001. Belgacom also disposed of certain activities such as Belgacom France, Ben, its security activities as well as the French activities of Infosources.


The human dimension of the BeST plan was implemented in the course of 2002. The company, which employed too many staff at the time, had many reasons for adopting this plan: voluntary offers for departure, part-time work and reconversion were proposed to a large portion of the staff.


In an increasingly open market, in which competition is more aggressive by the day, Belgacom decided to bet on the future by radically changing its image in 2003. A change of logo, colors and the promise to be closer to its customers were the bases on which the former RTT began to work. In economics, the open market is the term used to refer to the environment in which bonds are bought and sold. ... For other uses, see Logo (disambiguation). ...


These radical changes in the company’s philosophy were followed by the operator’s initial public offering. On 22 March 2004, Belgacom was listed for the first time on the Euronext stock market. The Belgian State remains the majority shareholder with 50% + 1 of all shares, while the ADSB consortium sold all its shares. For other uses, see Philosophy (disambiguation). ... “IPO” redirects here. ... Euronext N.V. is a pan-European stock exchange based in Paris[1] and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. ...


This enabled the Belgian incumbent operator to free considerable sums to finance its objectives. Indeed, the time has come for broadband, and the funding of the Broadway project (to cover the whole Belgian territory with fiber optic cables) requires huge investments.


2004 was also the year in which the incumbent operator carried out its first digital TV tests with a view to finding new sources of income in an increasingly competitive market.


[edit] 2005 : Belgacom TV and the takeover bid on Telindus

2005 was marked by two important events for Belgacom: the launch of Belgacom TV and the takeover bid on Telindus. During summer 2005, Belgacom launched Belgacom TV, the first digital TV offer in Belgium. ...


The first signs of digital TV in Belgium appeared in 2004, when Belgacom started its first digital TV tests in a few hundred homes.


In May 2005, the Belgian operator took the market by surprise when it acquired the rights to broadcast professional Belgian football (D1 & D2) for the next three seasons through its subsidiary Skynet iMotions Activities. A player (wearing the red kit) has penetrated the defence (in the white kit) and is taking a shot at goal. ...


This step anticipated the imminent launch of Belgacom TV in June 2005. This digital TV offer via ADSL was the first of its kind in Belgium and transformed Belgacom into a quadruple player, offering fixed telephony, mobile telephony, high-speed Internet as well as television. It also enabled the Belgian company to secure new sources of income, given that the profit margins on its traditional activities are becoming increasingly reduced. During summer 2005, Belgacom launched Belgacom TV, the first digital TV offer in Belgium. ... Asymmetric Digital Subscriber Line (ADSL) is a form of DSL, a data communications technology that enables faster data transmission over copper telephone lines than a conventional modem can provide. ... In telecommunication, Telephony encompasses the general use of equipment to provide voice communication over distances. ...


2005 was also the year of the takeover bid on Telindus, a leader in the network integration sector. An initial bid, considered “hostile” by the Telindus management, was made in September. This marked the start of a stock-market saga that would go on for almost four months. Tensions were high between the two companies, and the different stakeholders fought it out in the press. Please wikify (format) this article or section as suggested in the Guide to layout and the Manual of Style. ...


After a counter bid launched by France Telecom, Belgacom eventually carried the day, arriving at a conditional partnership agreement with Telindus in late December. France Télécom is the main telecommunication company in France. ...


As expected, Belgacom had responded by increasing its bid to Telindus, which enabled the conditional partnership agreement to be reached.


[edit] 2006: The premises of convergence

The main highlight of 2006 was the acquisition, in August, of Vodafone’s 25% share in Proximus. This allowed Belgacom to prepare as effectively as possible for convergence. In fact, the market trend appears to be moving towards bundled service offers. Telecommunication service providers in Belgium are increasingly responding to user needs by offering solutions ranging from services marketed separately to bundled, comprehensive quadruple-play offers.


In the television field, Belgacom continued to develop its digital television offer. At the end of 2006, the company had almost 140,000 Belgacom TV customers, i.e., exceeding by 40,000 the objective set by the company’s management. Likewise, during the same period, the coverage rate of digital television increased to 79.5% of the population.


Another important milestone was the conclusion of the acquisition of Telindus. The latter has become the Group’s IT services business branch. The company also changed its name in June 2006 to Telindus/Belgacom ICT.


Finally, it should be noted that, in 2006, Belgacom published its quarterly results for the first time.


[edit] Shareholding structure

Situation as of 31 December 2006:

Belgian State 50% + 1 share
Belgacom 7.7%
Floating shares 42.3%

[edit] Financial data

Financial data in millions of euros

Year 2004 2005 2006
Total revenue before non-recurring items 5540 5458 6100
Net income 922 959 973

[edit] Smallband

Each subscriber gets an amount of bandwidth each billing-month. From 1 GB with the low-cost services to 35 GB with the VDSL1 service. If you want to spend more bandwidth than monthly allowed, you have 2 choices. Or you buy extra bandwidth or you enjoy the internet at speeds of up to 64 kbitps. €3 / 500 MB for the ADSL Light package or €5 / 5 GB for the larger subscriptions. Image File history File links Emblem-important. ... Shortcut: WP:WIN Wikipedia is an online encyclopedia and, as a means to that end, also an online community. ... Shortcut: WP:CSD Current list: Category:Candidates for speedy deletion There are a few, limited, cases where admins can delete Wikipedia pages on sight. Non-admins can ask for an admin to delete such a page, either by listing it on speedy deletions, or by adding either a {{delete}} or... A kilobit is a unit of information storage, abbreviated kbit or sometimes kb. ...


[edit] See also

John J. Goossens (25 November 1944-8 November 2002) was a Belgian businessman. ...

[edit] External links

  • The Belgacom site, which presents the different business units, products as well as the Group structure: [1]
  • The Telindus site, which presents all the solutions offered by the company: [2]
  • The Skynet site, the contents portal of the Belgacom Group: [3]
  • The site of the BIPT (Belgian Institute for Postal Services and Telecommunications), the Belgian regulator: [4]
  • The Proximus site, the mobile subsidiary of the Belgacom Group: [5]

  Results from FactBites:
 
Belgacom - Wikipedia, the free encyclopedia (125 words)
Belgacom SA (Euronext: BELG) is a Brussels-based Belgian telecommunications company.
It changed its name to Belgacom in 1991.
Proximus, also called Belgacom Mobile is a Belgacom based, mobile telecommunications in Belgium.
  More results at FactBites »

 

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