Telit Communications plc (AIM:TCM), which develops and markets end-user cellular products, has signed a contract with Italy’s Wind Telecommunications spa for the sale of Telit t110 GSM handsets. Wind will buy 30,000 t110 handsets at $200 per handset, for a total of $6 million.
Telit already has one contract in Italy for the sale of 10,000 3G UMTS-technology handsets to Telecom Italia Mobile (TIM). There will probably be a follow-on contract.
Telit recently launched eight new models of GSM/GPRS-technology handsets. The t110 handset is shell-style, with two frequencies, a double display (internal and external), and digital camera.
Telit said, “The agreement with Wind is another step to deepen the penetration of international markets by Telit cellular telephone division.”
Telit posted €36.6 million in revenue in the first half of 2005, 23% more than in the first half of 2004. Most of the growth was from the marketing of handsets. The company mainly markets Pantech & Curitel (KSX:25930) handsets under the Telit label to Pele-Phone Communications Ltd.. It recently signed marketing contracts with Chinese manufacturers, including ZTE, with the intention of expanding sales to other wireless operators in Israel and Europe.
Telit has set up a handset distribution system at Italian phone stores. The company’s revenue from the sale of wireless end-user equipment grew by 31.5%, compared with the corresponding period, faster than the company’s overall growth rate.
Published by Globes [online], Israel business news - www.globes.co.il - on December 15, 2005