Economic impact

Orange Polska is a Polish-based company operating under a global brand and deeply rooted in Poland’s economy. It is also a stable and long-term investor. Our infrastructure is inextricably bound with Poland. In addition to our direct workforce of slightly over 10,000 people, Orange Polska’s activity has indirectly created over 40,000 jobs with its vendors, subsuppliers and partners nationwide. We buy a large portion of services and equipment that we need in the Polish market. Furthermore, the developments related to the COVID-19 pandemic in recent months have demonstrated Orange Polska’s strong commitment to the public good in Poland, as we have effectively responded to the needs and socioeconomic challenges affecting Poland’s economy and society.

The products and services we sell and our multi-billion investments, especially in modern fibre and mobile networks, contribute to Poland’s gross domestic product (GDP). GDP growth is also indirectly supported by taxes paid by Orange Polska and our expenditure on salaries or purchases of goods and services from local suppliers. These funds circulate in the economy, enabling further entities to come up with their products and services.

Investments in the broadband internet are directly reflected in GDP growth. According to the World Bank’s economists, a 10 percentage point increase in broadband penetration would increase GDP growth by 0.3–1.5%. Accordingly, we estimate that the broadband access provided by Orange Polska contributed to Poland’s GDP growth by 8.7% between 2004 and 2021 (based on OECD’s estimates from before the pandemic).

>10,000

Orange's Polska workforce

>40,000

jobs created by activity of Orange Polska

10 p.p

increase in broadband penetration

Investments in network development

Orange Polska has very consciously participated in the development of information society through its activities. We are also aware that further digitisation, based on the development of modern telecommunication networks, is a major driving factor for Poland’s economic growth.

In 2021, Orange Polska spent PLN 1.74 billion on investments. Between 2016 and 2021, the Company’s investments in Poland’s digitisation totalled approximately PLN 12 billion.

Orange Polska spent PLN 43.5 billion on tangible and intangible fixed assets (capital investments). Broad access to the internet stimulates rapid growth of digital economy and faster economic growth. The internet has become one of the resources determining the economy’s growth potential. We spent PLN 346 million on fibre in 2021 alone.

1.74 PLN billion

spent on investments
between 2016 and 2021

12 PLN billion

total amount spent
on digitisation in Poland

43.5 PLN billion

spent on tangible
and intangible fixed asset

346 PLN million

spent on fibre in 2021

There are currently over 5.8 million households within the reach of Orange Polska’s ultrafast fibre broadband, and the service is used by one million customers, who enjoy internet access at speeds of up to 1 Gbps. Since 2015, the Company has invested almost PLN 4 billion in fibre rollout. Orange fibre footprint consists of both the network developed by the Company itself and lines made available pursuant to the co-operation with several dozen other companies operating FTTH networks. On the other hand, fibre lines developed by Orange Polska are offered to other operators on a wholesale basis. Intensifying the co-operation between operators is a major component of the Company’s .Grow strategy announced last year. It is our ambition to grow the number of wholesale fibre customers six times by the end of 2024. A further increase in our fibre footprint will rely mostly on partnerships with other entities, particularly the wholesale operator Światłowód Inwestycje.

Orange Polska has been rolling out its fibre network not only in big cities, but also in small towns and rural areas, thus creating new growth opportunities for local communities and businesses with its investments.

7-8 mn

households will be connectable with Orange fibre by 2024

Orange Polska is the leader in providing broadband services in small locations. A 38% of high-speed fixed broadband lines in rural areas in Poland are operated by the Company. Furthermore, 35% of Polish schools use Orange Polska’s broadband.

We have already provided broadband internet access to 3,140 schools within the Nationwide Education Network (OSE). The access lines have been deployed pursuant to tender procedures held by the OSE operator, i.e. the Research and Academic Computer Network (NASK). Orange Polska connects schools through its own investments or by building fast broadband networks within the framework of the Digital Poland Operational Programme (POPC). POPC is the largest public programme for broadband infrastructure development in the areas of coverage gaps and is co-financed from EU funds. Temporary access lines (which do not guarantee speed of 100 Mbps) have been installed in over 100 schools.

Orange Polska participates in POPC upon winning subsequent competitions for co-financing. Since 2016, we have carried out fibre investment projects aimed to eliminate geographical differences in broadband internet access. In our competition submittals we declared to reach 404,000 households with broadband network in the areas classified as coverage gaps in the internet map of Poland. By the end of 2021, we had connected 324,000 households to broadband networks within POPC projects (adding 126,000 households in 2021 alone).

These investments have a huge impact, improving the quality of life in rural and semi-rural areas, stimulating development of local communities and increasing the competitiveness of the areas which have been devoid of the opportunities offered by digitisation. As a result, it is possible to overcome the barriers in access to education, e-services, remote work or other activities which have been strictly connected with physical presence in cities hitherto.

Value of the supply chain

The business activity of large corporations benefits also other companies, as they can grow, offer jobs and make investments. The great majority of goods and services which Orange Polska needs to operate is purchased in Poland. As many as 91% of our domestic suppliers are companies with full or majority Polish ownership.

In 2021 alone, purchases from Polish companies or Polish branches of foreign companies accounted for over 87% of Orange Polska’s aggregate expenditure. The Company placed orders totalling over PLN 4.8 billion with almost 3,000 companies. Despite the pandemic, Orange Polska continued to fuel the Polish economy, contributing to its stability: the aggregate value of our orders in 2020 was comparable (93%) with their three-year average. It is estimated that on average Poland owes 0.2% of its annual GDP growth to the Company’s purchases.

Our expenditure supports the economy and stimulates demand. According to the input-output analysis, which describes the demand effects of purchases throughout the supply chain, we have estimated that Orange Polska’s expenditure generated aggregate growth in demand for goods and services of Polish companies of over PLN 200 billion between 2005 and 2021.

Over a quarter (26%) of Orange Polska’s purchases in Poland supply high-technology companies (according to the Eurostat classification), while a further 16% supply companies from knowledge-intensive industries, that is based on advanced knowledge. These totalled more than PLN 2 billion in 2021. A 15% of Orange Polska’s expenditure supplies Polish-based ICT companies, which are considered the key asset of any modern economy.

Annual Report 2021

Engagement

Digital inclusion

Economic impact

Investments in network development

Value of the supply chain

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