Racal Telecom is to market Vodafone's mobile telecomms services. This will be the second deal Vodafone has signed with a fixed wire operator since a similar agreement with Energis.
From next year Vodafone Distribution will target medium and large businesses with a package that combines mobile and managed fixed voice and data services.
A fully managed outsourcing contract will be available from Racal Telecom.
Racal Telecom, which is expected to be floated next year said the deal with Vodafone is the first in a line of similar arrangements. Likewise, Vodafone, which signed its deal with Energis last month said it was looking for other partners.
Racal Electronics chief executive David Elsbury, said: "This is the first of many such alliances Racal plans to make in recognition of the need for the convergence of fixed and mobile services. When the service is fully operational, it is expected to significantly enhance Racal Telecom's revenues."
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