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The decision is part of a wider appointment in which Fallon's owner Publicis won the pan-European consumer business, while Euro RSCG owner Havas took the worldwide business-to-business account. Mother had handled the UK business since 2002.

The agencies' first brief will be to produce a brand campaign before the end of the year. The two agencies will also rebrand France Telecom's operations as Orange in its European markets.

Advertising for Wanadoo, the group's internet service provider, will be included in the Orange account after the £16m business was pulled out of M&C Saatchi in February. The Wanadoo name will be ditched this year and rebranded as Orange as part of a rationalisation of the group's brands.

The review was initiated at the end of last year and was managed from France Telecom's headquarters in Paris. Other agencies involved in the pitch included Mother, FCB, TBWA\Worldwide and a collaboration between DDB and BBDO.

WPP was involved at an early stage but pulled out after failing to resolve a number of client conflict issues; Virgin Mobile is handled by RKCR/Y&R, while JWT works on Vodafone.

According to insiders, a shake-up in Orange's pan-European marketing team is due to be announced in the next few weeks, with several high-level changes expected.

France Telecom revealed it was making the Orange brand the corporate and consumer face of its company last September (Marketing 2 September 2005).