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Telit Communications shares lifted by Orange partnership in France

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Machine-2-Machine (M2M) telecoms specialist Telit Communications (LON:TCM) has agreed a commercial partnership with France Telecom's Orange Business Services unit, under which Telit will distribute Orange's complete range of M2M solutions on the French market, by adding them to its own modules.

Shares were up nearly 8 percent on the news in midday trade.

Telit told investors that it sees the agreement as a strategic expansion of its current business model, and it expects the partnership to have a positive effect on its own distribution activities.

"Cooperating with Orange Business Services, the largest B2B telecommunications operator in France, is a strategic move forward for us in terms of expanding our M2M services portfolio ... This partnership is the ideal starting point for joint distribution activities", Telit Global Sales VP Felix Marchal commented.

"Orange has a reliable data network, as well as market dominance in terms of extremely high-speed broadband coverage, for which we can provide powerful modules to integrate all adapted wireless technology."

Telit will use its existing distribution channels to actively market Orange's data services, and it believes that the partnership will bring both companies better market penetration and an increased use of their respective M2M solutions.

"The Telit brand enjoys an excellent reputation in France, and its global expertise in terms of M2M modules is the perfect addition to our portfolio", Orange Business Services Director Luc Bretones said. "As a telecommunications operator this partnership gives us a unique opportunity to acquire new customer segments, and further increase the use of our M2M network."

In its Morning Report to investors, London-based stockbroker Astaire Securities said that the deal highlights Telits strong position in the M2M market, following on from a collaboration agreements with Deutsche Telekom and T-Mobile in February.

Quick facts: Telit Communications PLC

Price: 158 GBX

AIM:TCM
Market: AIM
Market Cap: £209.65 m
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