Orange Business Services, the commercial brand of France Telecom (FTE), which serves business-to-business clients, will offer Microsoft Corporation’s (MSFT) Office Together Select, a communication and collaboration software based on Microsoft Office 365. This business solution will be available on the company’s business virtual private network (:VPN) Galerie from June this year. We believe the launch of the new product will strengthen ties between both the companies in the enterprise service market and remain accretive to their business growth.
Orange customers will now benefit from the high performance and security level of VPN while accessing Office Together Select services. These services include instant messaging and Web Conferencing, collaboration portal and access to enterprise social networks. Further, we believe the company’s new offering will also support its targeted five-year action plans – Adapt and Conquer. The second phase, also called Conquests 2014–2015 aims at the Enterprise segment back on the path of growth through solid improvements in Europe as well as in Africa and the Middle East.
Under this program, France Telecom’s Enterprise segment is expected to register revenue growth of over 30% year over year in 2013 based on double-digit revenue growth in the cloud computing business. In order to enhance services to the corporate group, France Telecom is also improving its networks and services like Internet Protocol virtual private network (:IPVPN) access, managed services, network resources and Wi-Fi roaming in both, mature and emerging markets.
In this context, in 2013, the company together with Qualcomm Inc. (QCOM) and Ericsson (ERIC) has successfully tested an add-on downlink technology on L-band frequencies. By deploying L-band frequencies that range between 1,452-1,492 MHz, the company foresees improvements in network traffic. Further, France Telecom’s deal with Iliad SA is expected to foster 2G and 3G roaming facilities to 90% of the French population by 2018 while providing the company with €1 billion incremental revenues over the next six years.
France Telecom has a Zacks Rank #2 (Buy).
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