Snook predicts Orange will grow fifty-fold in four years

Michel Bon, chairman of France Telecom and Orange, said the goal is to reach 1.5 billion customers in 50 countries by 2005. Orange currently has 30 million customers in 20 countries. Bon said the point of the float is "to pursue our ambitious global strategy and re-finance France Telecom".

Departing chief executive Hans Snook, who was introduced as a company adviser, said the initial focus for the future is on Europe. However, he admitted Orange is considering the acquisition of 3G licenses in Thailand and said eventually Orange will spread to the US.

In response to questions about the expense of 3G licenses and the building of 3G infrastructures, Snook said Orange is confident about its future because of major increases in market share in both France and the UK over the last year. In France it has a 48.2 percent share and in the UK it has had the largest market share for the last five quarters. Most of Orange's operations outside these two countries have so far failed to make the company money.

France Telecom is offering up to 15 per cent, including two per cent to retail investors, of its Orange subsidiary at a price range of E11.5 to E13.5 (£7.33 to £8.60) per share, valuing the group at between E55.2bn and to E64.8bn (£35.3bn and £41.5bn). This is a sharp reduction from the E150bn (£96bn) predicted when it added Orange to its mobile interests for $45bn from Vodafone in May last year.

Germany's Deutsche Telekom, KPN of the Netherlands and Britain's BT are all planning to bring their mobile divisions to market, but none were commenting on today's float of Orange or expectations for their own share prices.