Vodafone’s business arm and Huawei are to jointly develop services for the enterprise market in Europe, Asia Pacific and Africa.

The two companies have signed a Memorandum of Understanding to establish a new strategic alliance.

According to a statement, specific areas of cooperation will include the use of Huawei’s fixed and mobile connectivity bonding technology for new products, in-building coverage solutions, M2M module designs, “Safe City”, the Internet of Things and cloud data centres.

Vodafone Group Enterprise Director Nick Jeffery said: “We have worked with Huawei across various parts of our business and this agreement to focus on the enterprise market is an important evolution.

“There is an opportunity for us both to bring our expertise to bear on some of the key challenges in the enterprise market.”

Vodafone Global Enterprise saw revenues increase 1.8 percent in the 12 months to March thanks to growth in M2M and unified communications.

It said businesses continued to seek a single provider of services across borders.

[Read more: Vodafone wins Deutsche Bank telephony deal]

Huawei’s Enterprise arm saw revenues increase 27.3 percent to €2.9 billion in 2014.

Huawei Enterprise Business Group President Yan Lida commented: “Now, many enterprises realise that technology-led transformation is necessary for companies to stay competitive, and improve operational efficiency and performance.

“We aim to carry out joint innovations, integrate our ICT expertise and global resources, help customers cope with challenges and opportunities brought by the new industrial revolution, and push ICT transformation in the industry.”

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