Orange-Samsung Tie Up - Analyst Blog

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Orange Business Services, the enterprise business unit of Orange S.A. , ( ORAN ), recently announced its partnership with Samsung to jointly drive tablet penetration into the enterprise market. Financial details of the deal were not provided.

As per the deal, Samsung will provide integrated software solutions in its tablets which will specifically cater to corporate customers of Orange Business Services.  Orange will also gain from enterprise class security, customer support and device management solution provided by Samsung.                                                                                    

Initially, both the companies will cater to the European network of Orange, with increased focus on France, Belgium, Spain and Poland. With the new partnership, Orange is targeting customers who look for a bundled service package that incorporates equipment, services and connectivity to enhance productivity.                                                                                           

Orangeis now in the second phase of its five-year action plan called Conquests 2014-2015, which aims at renewed growth at the Enterprise segment with solid improvements in Europe as well as in Africa and the Middle East.

The Enterprise segment is expected to register revenue growth of over 30% year over year in 2013 on steady revenue growth from the cloud computing business in the emerging markets. To boost its cloud services, the company launched the Orange Video Meeting mobile application that can be accessed through tablets or smartphones.

Going forward, the company expects capital expenditure to return to the normalized level of 10% of revenues, representing approximately €9.8 billion for the two-year period. As a result, the Conquest plan is expected to boost the company's growth in both domestic and international markets.

The plan focuses on enhancing the service provider's next-generation broadband access network, increasing international presence as well as expanding its global customer base by 50%. Through this project, the company intends to increase its customer base to 300 million by 2015.

Orange, which operates with other European telecom companies such as the Vodafone Group PLC ( VOD ), Telecom Italia S.p.A . ( TI ) and Telef ( TEF ), has a Zacks Rank #4 (Sell).



ORANGE-ADR (ORAN): Free Stock Analysis Report

TELEFONICA S.A. (TEF): Free Stock Analysis Report

TELECOM ITA-ADR (TI): Free Stock Analysis Report

VODAFONE GP PLC (VOD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ORAN , TEF , TI , VOD

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