New stores, faster network forms Orange UK strategy

By Kate Holton

LONDON, June 4 (Reuters) - Mobile phone operator Orange is to open more shops, reduce its reliance on Indian-based customer service centres and invest in a new high-speed network as part of its UK strategy from new Chief Executive Tom Alexander.

Orange, which is owned by France Telecom (FTE.PA), will also combine its mobile and fixed-line broadband arms to develop new services and products such as laptops.

The changes will result in 500 new jobs in customer service and retail by the end of the year and a reduction of up to 450 positions in administration, management and support functions.

"We need to give our customers consistent quality -- quality of network, products, service and experience," Alexander said in a statement. "Delivering that quality will see the number of customers who join, stay and spend with us grow."

In order to deliver a better network for its 15.8 million mobile customers in Britain, the company will rollout 450 new 2G base stations to improve coverage and invest further in its faster 3G network to provide services such as mobile TV and mobile Internet.

It will also launch from next year a super-fast mobile network, offering speeds of up to 14.4 megabytes per second.

As part of its retail expansion plans, it will open around 60 new stores across the country to add to its existing 338 outlets and halt the expansion of its offshore call centre partnerships in India.

Alexander, who joined Orange in January from Virgin Mobile, told reporters he could see a time when the company no longer used call centres outside of Britain.

"We will be selling a range of laptops and devices," Alexander told reporters on a conference call. "There is a blurring between laptops and handset devices and there will be a whole range of new devices.

"If you look at sales of dongles (mobile Internet) at the moment, it's a great growth area. Now, people are expecting Internet access wherever they are and that's where we think we've got a great advantage in having fixed and mobile." (Reporting by Kate Holton; Editing by Jason Neely)