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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