SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

October 26, 2006

Commission File No. 1-14712

FRANCE TELECOM

(Translation of registrant’s name into English)

6, place d’Alleray, 75505 Paris Cedex 15, France

(Address of principal executive offices)

Indicate by check mark whether the Registrant files or will file

annual reports under cover of Form 20-F or Form 40-F

Form 20-F      X            Form 40-F              

Indicate by check mark whether the Registrant is submitting the

Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes                      No      X    

Indicate by check mark whether the Registrant is submitting the

Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes                      No      X    

Indicate by check mark whether the Registrant, by furnishing the

information contained in this Form, is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934

Yes                      No      X    

(If “Yes” is marked, indicate below the file number assigned to the

Registrant in connection with Rule 12g3-2(b): 82-            )

Enclosure: France Telecom’s presentation to financial analysts of Third-quarter 2006 financial information.

3Q 2006

October

26

th

, 2006

2

Cautionary statement

•

This presentation contains forward-looking statements and information on France Telecom's objectives,

notably for 2006.  Although France Telecom believes that these statements are based on reasonable

assumptions, these forward-looking statements are subject to numerous risks and uncertainties and there is

no certainty that anticipated events will occur or that the objectives set out will actually be achieved.

Important factors that could result in material differences between the objectives presented and the actual

achievements

include,

among

other

things,

changes

in

the

telecom

market’s regulatory environment,

competitive

environment

and

technological

trends,

the

success

of

the

NExT

program and other strategic

initiatives (based on the integrated operator model) as well as France Telecom’s financial and operating

initiatives,

and

risks

and

uncertainties

attendant

upon

business

activity, exchange rate fluctuations and

international operations.

•

All the financial information in this presentation is based on international financial reporting standards

(IFRS)

and

present

additional

specific

uncertainty

factors

given

the

risk of changes in IFRS standards.

•

More detailed information on the potential risks that could affect France Telecom's financial results can be

found in the Document de Référence

filed with the Autorité

des Marchés

Financiers

and in the Form 20-F

filed with the U.S. Securities and Exchange Commission.

•

In accordance with IFRS 5 relating to non current assets held for sale and discontinued operations, the

Directory activities of France Telecom are presented separately from other activities held and used by

France Telecom as if PagesJaunes

Groupe

was not consolidated anymore at September 30, 2006 (see

glossary).

3

3Q06:

Key figures in line with full year guidance

*

See

glossary:

impact

of

Pages

Jaunes

disposal

on

consolidated

accounts;** Excluding Lebanon reserve reversal

in 1H05

(9M05

actual

GOM

margin:

38.7%;

9M06:

-190

pts

vs

9M05 actual

)

Gross Operating Margin

3.5%

3Q06

Euro millions / Excluding Pages Jaunes

*

Comp.

Basis

-3.5%

Revenues

8.9%

1.2%

Actual

Comparable

Basis –

3Q05

CAPEX

as a % of revenues

5,061

12,915

1,550

12.0%

4,884

37.4%

13,070

1,520

11.6%

G.O.M before commercial expenses

6,842

as a % of revenues

52.3%

as a % of revenues

G.O.M -

CAPEX

3,511

3,364

9M06

14,141

36.8%

38,441

4,567

11.9%

19,640

51.1%

9,575

%

change        3Q06

vs 3Q05

% change

9m06 vs 9m05

Comp. Basis

-4.5%

1.2%

-1.7 pts**

-0.9%

-1.1 pts

1.5%

-7.1%

6,751

52.3%

+1.3%

+11.1%

39.2%

-1.8 pts

-1.9 pts

-1.9%

-4.2%

+8.6%

+1.3%

9 months GOM margin in line with full year guidance

4

3Q06:

Major operational achievements

* Company’s estimates

/ ** growth

rate on a comparable basis

Positive impact of rebranding

and

new offers

on French

ADSL positions:

50.3%*

retail

ADSL market

share

at

the

end

of September

53% Livebox

penetration

on ADSL customer

base

In France, positive impact of MVNO strategy

and

of Orange

customers

base growth

on mobile revenue

Following

product

line refreshment, 187k contract

net

additions in Orange UK mobile

Spain

prepared

rebranding

and

new offers

in 3Q, launched

in

4Q

Mature Markets

Growing Markets

Strong

revenue increase

in growing

markets: +19.3%**

Leadership maintained

on mobile in Poland

(+20.5%**

revenues growth) and

strong

increase

of mobile broadband

customer

base (+221% vs Dec

2005)

Key milestones

Focus on

core

businesses

Orange Messenger by Windows Live: the

first

convergent PC

and

Mobile Instant Messaging

Service

Launch of

our first

“Autumn

collection”

Unik:

unlimited

mobile at

home

10€/month

for unlimited

calls

towards

Fixed

line in France

22€/month

for unlimited

calls

towards

Fixed

line in France and

Orange mobiles

Mobile

&

connected:

next-generation

multiplay

Includes

naked

ADSL access, IP&mobile TV and

unlimited

mobile

calls

Business Together:

Real time and easy access to company's collaborative

applications

Continue

customer

driven

innovation

5

24/07/2006:

disposal

of

France Telecom

Mobile Satellite

Communications for EUR60m

28/07/2006:

Enterprise: acquisition of Diwan

Company

10/10/2006:

Closing

of

the

disposal

of

Pages

Jaunes’

stake

to

KKR

for EUR3,312m

6

12,264

11,999

12,915

13 ,070

-11

-71

-103

+340

+933

-17

3Q 05

Reported

(incl PJ)

3Q 05 ( excl.

PJ)

Forex

Impact

Perimeter

Impact

3Q 05 on a

comparable

basis

Personal

Home

Enterprise

Eliminations

3Q 06

+ 5.0%

-1.8%

- 3.7%

3Q06:

Group revenues by segment

Excluding Pages Jaunes

*

Euro millions

Of which:

Amena: EUR853m

Revenues increase of 1.2% yoy

on a comparable basis

* See

glossary:

impact

of

Pages

Jaunes

disposal

on

consolidated

accounts

7

3Q06:

Group revenues by main markets

Growing markets’

share of total revenue increased by 2

points in one year

3Q05 –

3Q06 revenues growth

analysis

-0.9%*

+19.3%*

* % change on a comparable basis yoy

Euro millions

13,070

12,915

+264

-109

Group revenues

3Q05 CB

Mature markets

Growing markets

Group revenues

3Q06

Mature

markets

88%

Growing

markets

12%

Revenue breakdown by main markets

8

3Q05 -

3Q06 revenues analysis

Personal

3Q06

€7,146m / +20.4% actual / +5.0% on a comparable basis

+ 29

- 9

+ 22

+ 87

+ 220

+ 871

- 2

3Q05 actual

Forex Impact

Perimeter

Impact

3Q05 on a

comparable

basis

Personal

France

Personal UK

Personal Spain

Personal

Poland

Personal ROW

3Q06

6,806

5,937

7,146*

+1.2%

-0.6%

+2.6%

+20.5%

+13.9%

Euro millions

* After

–EUR9m

of

changes

in

intragroup

eliminations

Sustained

revenue growth, in line with

1H06, with

a good

performance in France

Strong

and

sustained

trend in growing

markets

9

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

Western European

countries

Eastern Europe

Africa, Middle-East, other emerging

countries

Personal 3Q06 KPI’s

2,244

1,566

653

319

93

2,924

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

ow France

ow UK

ow Spain

ow others

3,896

Total Group broadband

mobile customers (000)

50.4m

55.0m

15.2m

22.6m

7.0m

15.0m

72.6m

92.6m

Total Group mobile customers*

+5.9%**

+23.1%**

+51.4%**

+15.4%**

* Including

Amena; ** Over

12 months

on a comparable

basis

Acceleration of mobile broadband penetration

+150% in

9 months

10

3Q06 revenues:

Personal France

€2,529m / +1.0% actual / +1.2% on a comparable basis

Customer base: 22.54m -

excluding MVNOs

-, +4.0% yoy

277k contract net additions in 3Q06

improved contract mix from 62.3% in 3Q05  to 63.7% in 3Q06

2.5m broadband customers (+0.6m vs

2Q06), base doubled in 9 months

MVNO’s

success confirmed:

617k

MVNO’s

customers (+ 186k vs

2Q06)

Annual rolling ARPU (€413, -4% yoy), of which data ARPU: €62 in 3Q06 (+5% yoy)

Underlying growth  : + 5.4% pre CTR impact

Euro millions

*: excluding CTR

3Q05 -

3Q06 revenues analysis

Sustained Orange customer base growth, +4% yoy

+ 91

-

100

-

3

+ 25

+ 17

3Q 05 on a

comparable basis

Customer base

Impact

CTR  Impact

Voice revenues*

Non-Voice

Revenues

Equipments &

others

3Q 06

2,500

2,529

11

3Q06 revenues:

Personal UK

€1,491m / -0.1% actual / -0.6% on a comparable basis

15.14m customers, +4.6% yoy.

Strong

contract

net

additions:

187k

in

3Q06,

best

quarter

since

3Q

2001

728k broadband customers (+202k vs

2Q06: strongest quarter ever)

Decrease of blended churn

for the third consecutive quarter to 24.3%

Leadership maintained on Contract ARPU at £563 but slight decrease of blended ARPU due to mix

effect

Data ARPU: £52 in 3Q06 (+4% yoy)

Euro millions

3Q05 -

3Q06 revenues analysis

3Q06 revenue stable, reflecting 1H06 balanced strategy between

market share and profitability

1,491

0

+ 8

-51

-8

+ 50

3Q05 actual

Forex

Impact

3Q05 on a

comparable

basis

Customer Base

Impact

Voice revenues

Non-voice

revenues

Equipment &

others

3Q06

1,499

1,492

12

3Q06 revenues:

Personal Spain

€882m / +2.6% on a comparable basis

10.8m customers, +10.3% yoy

on a comparable basis,

173k net adds in 3Q06

growth of both contract and prepaid customer base

Underlying growth : +5.5% pre CTR

MVNO agreement signed with The Phone House in September

Stabilisation

of blended churn

to 24.7% in 3Q06

Euro millions

* excluding CTR

3Q05 -

3Q06 revenues analysis

In 3Q, focus on preparing rebranding, implemented in 4Q

0

859

882

+5

-39

-24

+ 80

3Q 05 on a

comparable basis

Customer Base

Impact

CTR Impact

Voice Revenues*

Non-voice revenues

Equipment & others

3Q 06

13

3Q06 revenues:

Personal Poland & ROW

Poland:

Confirmed

leadership

in

volume

with

increased

market

share

in

contract

in

3Q06

(37%

vs

32% in 3Q05)

32.3m

ROW

mobile

customers,

+29%

yoy

on a comparable basis

Romania: 7.5m customers (+20.5% yoy)

Success of Broadband deployment with 131K subs in Romania and 101K in Slovakia

Emerging markets confirmed as key revenue driver

Euro millions

3Q05

actual

3Q06

Actual

changes

Comparable

basis changes

Poland

Total Number

of customers

(000)

9,134

11,738

+28.5%

+28.5%

Total revenues (EURm)

415

510

+22.7%

+20.5%

ROW

Total Number

of customers

(000)

24,695

32,341

+31%

+29%

Total revenues (EURm)

1,582

1,804

+14.1%

+13.9%

Main countries revenues (EURm)

Belgium

368

397

+8.0%

+8.0%

Netherlands

164

163

-0.9%

-0.9%

Switzerland

230

224

-2.7%

-0.9%

Romania

233

284

+21.8%

+26.3%

Slovakia

144

162

+13.2%

+10.7%

14

3Q06 revenues:

Home

€5,620m / +0.2% actual

/ -1.8% on a comparable basis

+ 1

- 49

- 43

+105

+8

- 29

+ 27

3Q05 actual

Forex impact

Perimeter

Impact

3Q05 on a

comparable

basis

Home France

Home Poland

Home UK

Home Spain

Other Home

ROW

3Q06

5,620*

5,723

5,610

-1.0%

+0.6%

-6.2%

-17.8%

Euro millions

+ 10.4%

* After

–EUR9m

of

changes

in

intragroup

eliminations

3Q05 -

3Q06 revenues analysis

Controlled erosion thanks to French market good performance

and broadband dynamics

15

416

627

990

2,931

2,515

2,131

1,559

3,431

3,661

3,996

4,457

4,926

5,216

5,536

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

Broadband Internet customers

489

3,468

9,210

5,951

1Q05

3Q06

Broadband

Internet customers

in Europe (000)

ADSL customers

in France (000)

of which

Livebox

12%

of total

53%

of total

77% of European Internet

customer base is broadband

53%

of

ADSL

customers

equipped

with

a

Livebox

in France

1.7

million

VoIP

customers

(59%

penetration

of

Livebox

vs

49% in 3Q05)

421k

IP-TV

clients

(115k

net

adds

vs

2Q 2006)

Livebox

at

the

heart

of

the

Group

broadband

multiplay

strategy

+55% in 18

months

of which

Livebox

16

Home France 3Q06 KPI’s

48.3%

48.1%

50.6%

59.1%

59.6%

50.3%

49.8%

49.8%

50.0%

50.2%

3Q05

4Q05

1Q06

2Q06

3Q06

Net adds MS

Market Share

Resilience

of total number

of fixed

lines

(m)

ADSL market

share stabilised

Favorable

mix

impact on Consumer Services ARPU

13.1

12.8

12.6

9.9

9.5

8.7

5.8

4.7

4.4

End of September 05

End of Dec 05

End of September 06

Subscription fees

Calling services

On-line & Internet Services

27.5

Euros

+ 2.7%

+ 3.6%

-

12.1%

+ 31.6%

YoY

change

27.0

26.8

* Company’s estimates

25.95

26.32

26.65

26.93

27.07

0.34

0.57

0.92

1.21

1.55

3Q05

4Q05

1Q06

2Q06

3Q06

Number of full unbundled lines

Nb

of lines excluding full unbundled lines  

27.41

27.50

27.57

27.53

27.51

17

Home France 3Q06

+0.1% actual

/ -1.0% on a comparable basis

4,403

4,398

4,446

+ 7

- 40

-11

+ 48

3Q05 actual

Perimeter Impact

3Q05 on a comparable

basis

Consumer services

Carrier Services

Other Home rev in Fr

3Q06

Euro millions

3Q05 -

3Q06 revenues analysis

Total

retail

and

wholesale

access

line

revenue

increased

6%

in

3Q06

vs

3Q05

(+3.3% in 9 months 06 vs

9 months 05)

Carrier services:

Increase of domestic carrier services revenues, driven by unbundling, offset by volume

and price impact on Other Carrier Services

Revenue

trends

improvement

vs

2Q06 (-2.3%) thanks to

consumer services stabilisation

2,408m€

456m€

1,539m€

18

2,418

2,408

-33

+51

-29

-86

+100

+40

-27

-27

3Q 05

Chges in nber of

retail subscribers

Subscription fee

increase

CTR Impact

PSTN volume and

tariff mix

Broadband

Internet

VoIP

Narrowband

Internet & Teletel

Others consumer

services

3Q 06

Home France consumer services 3Q06

-0.3% actual

/ -0.4% on a comparable basis

Euro millions

* Company’s estimates

3Q05 -

3Q06 revenues analysis

Monthly line rental fee increase

1 euro (+7.1%) increase from July 4

th

(15 euros VAT included)

5.5m ADSL clients at the end of 3Q06 (+38.5% vs

3Q05)/ 50.3% market share (59.1% share of

conquest in 3Q)*

2.9 m Livebox, supporting development of new usages with 53% of ADSL customer

base equipped

Increase in VoIP

customers:

1.7m customers (31% of total broadband customers at the end of September

06 vs

28% at the end of June)

Broadband development continue to offset traditional revenue

decrease

19

Home ROW 3Q 06 revenues -

Spain

€135m / -16.2% actual

/-17.8% on a comparable basis

Deployment of

convergence

strategy

Market standard in Spain moving to ADSL including PSTN voice

bundles, with a strong pressure on prices

Orange ADSL ARPU maintained above 30 euros

49k Livebox in 3Q06 vs 7k in 3Q05

Continued unbundling deployment with 64% coverage

ULL users represents 44% of total DSL customers vs 29% in Dec 05

New offers launch delayed to support rebranding, completed in

October

Customer base

ADSL customer base of 593k, +12.3% yoy

A customer base

increasingly broadband, multiplay and

subscription based

20

Home ROW 3Q 06 revenues -

UK

€107m / +1.2% actual

/+0.6% on a comparable basis

Customer

base

ADSL customer base of 1,029k, +24.6% yoy

A Leadership confirmed on VoIP

Customer base at 243k at the end of September

Deployment of

convergence

strategy

Range of product refreshed to increase customer benefit

(from

free broadband offer to premium offers)

Continous deployment of unbundling

with 348 local

exchanges end of September (24% coverage)

Rebranding

completed

and

converged

offers

to be

launched

21

1 ,852

1 ,924

1 ,879

-9

+30

+49

-132

-10

+68

-23

3Q 05 Actual

Forex Impact

Perimeter Impact

3Q 05 on a

comparable basis

CTR Impact

Business

Network Legacy 

Advanced

Business

Network

Extended

Business

Services

Others

3Q 06

3Q06 revenues:

Enterprise

€1,852m / -1.4% actual

/ -3.7% on a comparable basis

Euro millions

3Q05 -

3Q06 revenues analysis

Business Network Legacy (-12.7%)

Continued Voice Legacy Revenue traffic decline

Data Legacy revenue decrease reflecting migration to IP VPN

Advanced Business Network (+11.4%)

IP VPN access up 46% yoy

in 3Q06 (242k access)

Business

Everywhere

:

465

K

end-users

in

France,

up

24%

yoy

in 3Q06

Extended Business Services (+17.2%)

Higher

Increase

in

3Q

compared

to

1H

due

to

significant

business

deployment

in 3Q06 and a rather weak 3Q05

22

3Q06:

Gross Operating Margin

Excluding Pages Jaunes

*

Euro millions

Revenues

non labour

expenses

of which commercial expenses

as a % of revenues

11,999

4,720

39.3%

5,281

1,438

as a % of  revenues

44.0%

as a % of  revenues

12.0%

Gross Operating Margin

labour

expenses

1,998

as a % of  revenues

16.7%

Actual 3Q05

Comparable

Basis –3Q05

3Q06

12,915

5,061

39.2%

5,822

1,690

45.1%

13.1%

2,032

15.7%

13,070

4,884

37.4%

6,165

1,958

47.2%

15.0%

2,021

15.5%

9 months GOM margin in line with full year guidance

9M06

17,892

46.5%

38,441

5,499

14.3%

6,407

16.7%

14,141

36.8%

* See

glossary:

impact

of

Pages

Jaunes

disposal

on

consolidated

accounts

23

Sept 05

Sept 05 CB

Dec 05

Sept 06

3Q06:

Headcounts and labour costs

Labour costs, euro millions

Headcounts, end

of period

199,796

194,254

194,830

198,185

Labour

costs

down

1.0%

on

a

9

months

comparable

basis

2,021

2,166

2,220

0,9%

-3,1%

-0,5%

T106

T206

T306

Labour costs

% change comparable basis yoy

24

3Q06:

Commercial expenses

1 ,958

1, 731

1 ,810

15.9%

8.7%

4.4%

1Q06

2Q06

3Q06

commercial expenses

% change comp. Basis YoY

Euro millions

Monitor proactively

commercial expenses

in order

to:

Stick with

each local market

situation

Invest

in high

value customer

base

25

3Q06:

Capex

€1,520m / -1.9% on a comparable basis

Capex focus on new services deployment

Fixed network

Euro millions

Mobile network

% change

Comparable

Basis –

9M06

IT& Customer service

platforms

-8.4%

-3.3%

+6.0%

Livebox, Set Top boxes

& others

+24.2%

9m06 Capex

by key

items

9M06 Capex

by key

items

9M06

1,775

926

1,076

789

TOTAL GROUP CAPEX

+1.5%

4,567

Fixed

network

20%

IT&Custom

ers'

service

platforms

24%

Livebox,

set-top

boxes and

others

17%

Mobile

network

39%

26

Full Year 2006 trends confirmed

7bn organic Cash Flow generation target confirmed for 2006

In maturing and highly competitive markets, manage a balance

between market share and profitability through dynamic cost

optimization and driven opex

and capex

allocation

In growing markets, continue to fuel the strong profitable

growth with the right level of resources

Full year GOM in line with guidance

decrease of GOM rate between –100 and 200 basis points

3Q 2006

October

26

th

, 2006

28

Glossary

(1)

ARPU –

Consumer Fixed Services (HCS segment):

average annual revenue per line for the Consumer Fixed Services

is calculated by dividing the average monthly

revenues on the basis of the last twelve months by the weighted average number of customers over the same period. The weighted average number of customers is the

average of the monthly averages during the period in question. The monthly average is the arithmetic mean of the number of customers at the start and end of the

month.

ARPU –

Orange ARPU (PCS segment):

average annual revenue per user (ARPU) is calculated by dividing the revenues of the network (see that definition) generated

over

the

last

twelve

months

(excluding

revenues

from

mobile

virtual

network

operators

–

MVNO)

by

the

weighted

average

number

of

customers

over

the

same

period.

The weighted average number of customers is the average of the monthly averages during the period in question. The monthly average is the arithmetic mean of the

number of customers at the start and end of the month. ARPU is expressed as annual revenue per customer.

AUPU –

Orange AUPU (PCS segment):

average monthly usage per user (AUPU), calculated by dividing the total minutes used over the preceding 12 months (outgoing

calls,

incoming

calls

and

roaming,

excluding

the

traffic

of

mobile

virtual

network

operators

–

MVNO)

by

the

weighted

average

number

of

customers

over

the

same period.

AUPU is expressed in minutes as a monthly usage per customer.

CAPEX:

capital expenditures on tangible and intangible assets excluding GSM and UMTS licenses and excluding investments through finance lease.

Commercial expenses:

external purchases including purchase of handsets and other products sold, retail fees and commissions and advertising, promotional and

sponsoring expenses.

Data

on

a

comparable

basis

(cb):

data

with

comparable

methods,

consolidation

and

exchange

rates

are

presented

for

the

preceding

period.

This

transition

from

data

on

an

historical

basis

to

data

on

comparable

basis

consists

of

keeping

the

results

for

the

period

ended

and

restating

the

results

for

the

corresponding

period

of

the

preceding

year

for

the

purpose

of

presenting,

over

comparable

periods,

financial

data

with

comparable

methods,

scope

of

consolidation

and

exchange

rates.

The

method

used

is

to

apply

to

the

data

of

the

corresponding

period

of

the

preceding

year

the

scope

of

consolidation

for

the

period

ended

as

well

as

the

average

exchange

rate

used

for

the

income

statement

for

the

period

ended.

29

Glossary

(2)

French

Retail

ADSL

Market

Share

(ARCEP

definition):

starting

from

1Q06,

quarterly

French

ADSL

market

share

presentation

will

be

based

on

ARCEP

High-

speed

Internet

Observatory

methodology.

Until

the

end

of

2005,

the

figures

published

by

France

Telecom

covered

intermediate

markets

(such

as

private

networks 

for

business

companies

and

“Turbo

DSL”

offers)

that

did

not

automatically

resulted

in

high-speed

subscriptions

on

the

retail

market.

They

also

included

ADSL

access

not

used

for

Internet

connection

(MaLigne

TV

and

MaLigne

Visio

Mono-play

offers

without

high-speed

Internet

access).

From

1Q06,

estimation

of

total

ADSL

market

figures

published

by

France

Telecom

will

be

built

by

adding

up

to

France

Telecom

ADSL

access

on

the

retail

market

(excluding

monoplay

usage

without

high-speed

Internet

access),

the

unbundling

and

ADSL

wholesale

offers

sold

to

third

party

operators

and

Internet

access

providers

(IAPs).

This

estimation

is

very

close

to

ARCEP

publications

based

on

data

received

from

major

IAPs.

GOM

(Gross

Operating

Margin):

Revenues

less

external

purchases,

other

operating

expenses

(net

of

other

operating

income)

and

labour

expenses.

Labour

expenses

presented

in

GOM

do

not

include

employee

profit-sharing

or

share-based

compensation.

Impact

of

Pages

Jaunes

disposal

on

consolidated

accounts:

In

accordance

with

International

Accounting

Standards

(IFRS

5),

an

entity

shall

classify

an

activity

as

a

non­current

asset

held

for

sale,

if

its

carrying

amount

will

be

recovered

principally

through

a

sale

transaction

rather

than

through

continuing

use.

The

directory

activity

of

France

Telecom

corresponds

to

this

definition,

as

an

active

programme

for

the

finalization

of

the

disposal

of

Pages Jaunes

Group

to

KKR

existed

at

closing

date.

Therefore,

the

assets,

liabilities,

cumulative

revenues

and

expenses

of

PagesJaunes

Group

are

presented

separately

from

those

corresponding

to

the

activities

held

and

used

by

France

Telecom

as

if

Pages

Jaunes

Group

was

not

consolidated

any

more.

In

accordance

with

IAS,

this

format

of

presentation

is

used

both

for

the

financial

data

of

the

current

accounting

period

and

for

the

data

of

the

previous

accounting

periods

provided

for

comparison.

Furthermore,

the

information

presented

on

the

face

of

the

simplified

consolidated

P&L

does

not

take

into

consideration

the

elimination

of

the

intercompany

flows

between

PagesJaunes

Group  

and

the

other

companies

of

France

Telecom.

Internet

ARPU

(ARPU:

Monthly

Average

Revenue Per

User):

calculated

by dividing

year-to-date

connectivity

revenues by the

weighted

average

number

of

Internet customers

during

the

same

period. The

weighted

average

number

of

Internet customers

during

a period

is

the

monthly

average

customer

base for the

period. The

monthly

average

customer

base is

calculated

as the

sum

of

the

opening

and

closing

number

of

customers

for the

month

divided

by 2.

Labour expenses:

labour expenses

included

in the

determination

of

the

GOM do not

include

employee

profit sharing

or share-based

compensation costs. Those

costs

are part of

the

costs

included

between

GOM and

operating

income. Labour expenses

are net of

the

capitalized

labour expenses.

Market

Share

of

fixed

line

telephony

in France:

calculation

based

on traffic

on the

network or interconnected

to the

network of

France Telecom.

30

Glossary

(3)

Non

labour

expenses:

operating

expenses

excluding

labour

expenses.

Operating

expenses

excluding

labour

expenses

included

in

the

calculation

of

GOM, include

external

purchases

and

other

operating

expenses

(net

of

other

operating

income).

Non

labour

expenses

are

net

of

capitalized

costs.

Number

of

employees

(active

employees

at

end-of-period)

:

number

of

persons

working

on

the

last

day

of

the

period,

including

both

permanent

and

fixed-term

contracts.

OPEX:

operating

expenses

included

in

the

determination

of

the

GOM

include

labour

expenses

and

non

labour

expenses.

Orange

churn

rate

(PCS

segment)

:

a

measure

of

the

number

of

customers

leaving

the

Orange

network.

Churn

rate

is

calculated

by

dividing

the

total

number

of

customers

who

disconnect

or

are

considered

to

have

disconnected

from

its

network,

voluntarily

or

involuntarily

(excluding

money-back

return

and

fraudulent

connections)

for

the

previous

12

months

by the

weighted

average

number

of

customers

over

the

same

period.

For

Personal

UK,

customers

migrating

between

contract

and

prepaid

products

are

included

in

individual

product

churn

but

do

not

impact

overall

churn

as

they

remain

on

the

Orange UK

network. Customer disconnections that occur either during the money-back guaranteed 14-day trial period or due to fraudulent connections are not included in churn. The Company also excludes

from churn those connections  which, in its view, do not result in active customers, including those as a result of prepaid handset upgrades or the removal of handsets from the UK market.

Prepaid  customers are treated as having  churned  if they have not made any outgoing calls and have received less than four incoming calls in the last 3 months.

For Personal  France, churn includes those customers leaving the Orange network, migrations between contract and prepaid products and those customers upgrading their handsets via an

indirect channel. Prepaid customers are treated as having churned after eight months if they do not recharge their account during this eight-month period.

Orange

network

ARPU

revenues

(PCS

segment)

:

Orange

network

revenues

represent

the

revenues

(voice,

data

and

SMS)

generated

by

the

use

of

the

wireless

network,

including

both

the

traffic

generated

by Orange subscribers

and

the

traffic

generated

by mobile  virtual

network operators

(MVNO). It

includes

the

revenues generated

by incoming

and

outgoing

calls, network

access

fees,

roaming

revenues

from

customers

of

other

networks,

revenues

from

value-added

services and

revenues from

mobile virtual

network

operators

(MVNO). It

represents

the

recurring

income

most

relevant to the

wireless

business and

is

directly

correlated

with

the

business indicators.

Orange

non-voice

service

revenues

(PCS

segment) :

revenues

from

non-voice

services

equal

all

revenues

from

wireless

services,

excluding

revenues

generated

by

“voice”.

For

example,

they

include

the

revenues generated

by sending

SMS (text

messages), MMS (multimedia

messages), data (WAP, GPRS and

3G) and

the

costs

invoiced

to the

customer

to purchase

content

(downloading

ring tones, sports results, etc.), telemetry, mobile  portals

and

their

content.

Statutory

figures

:

statutory

figures

means

data

before

elimination

of

inter-segment

transactions.

Growing

markets

:

Poland

mobile, Botswana, Cameroon,  Dominican

Republic, Egypt, Equatorial

Guinea, Ivory

Coast, Jordan, Madagascar, Mauritius, Mexico, Moldavia, Romania,

Slovakia, Senegal, Vanuatu, Vietnam, other

countries

Net Debt / GOM

:

Net Debt end

of

the

period

/ (GOM  2H05 + GOM 1H06) with

12 months

of

Amena’s GOM

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	FRANCE TELECOM
Date:  October 26, 2006	By:	/S/    PIERRE HILAIRE
	Name:	Pierre Hilaire
	Title:	Director of Financial Information