Incumbent operator France Telecom has stated that its 2006 earn ings before tax, depreciation, interest and amortisation would be about 1 billion euro less than the 20.2 billion euro the market had anticipated.

Incumbent operator France Telecom has stated that its 2006 earnings before tax, depreciation, interest and amortisation would be about 1 billion euro less than the 20.2 billion euro the market had anticipated. France has witnessed a desertion of fixed line telephones in favour of broadband-based alternatives, which have lower revenues as a result of intense competition and tough regulation. France Telecom intends to bring forward planned investment in its new “triple-play” services, with TV, internet and telephony over broadband, in the belief that the higher margins from nascent services can offset lower telephony revenues.