(Reuters) -French telecoms operator Orange is establishing a new defence and homeland security division as it steps up efforts to support actors in these sectors in France and Europe, it said on Monday.

The specialised division will be a part of Orange Business which serves businesses and organizations. It will deploy connectivity solutions, artificial intelligence and cybersecurity services, and integrate civilian and military networks, targeted at defence ministries, security operators and related industries.

WHY IT'S IMPORTANT

European companies are set to benefit from countries' growing defence budgets as the continent seeks home-grown alternatives to rely less on the United States.

NATO members agreed earlier in June to bring their defence spending target to 5% of gross domestic product by 2035.

France is also leading Europe's efforts to secure communications by raising its stake and spearheading a capital increase plan for satellite operator and Starlink rival Eutelsat.

KEY QUOTES

"We are ideally positioned to meet the rapidly evolving needs of this highly specialized sector, which relies on civil solutions," said Nassima Auvray, who will lead the new division.

Several hundred experts will be brought together from various group entities within Orange to work on the division, the company said in a statement.

CONTEXT

Orange owns and operates seven cable ships that install and maintain underwater telecom cables, critical infrastructure that has become a focus of European security concerns amid reports of Russian sabotage attempts.

Other telecoms companies aiming to pivot to defence include Finland's Nokia which will jointly develop tactical networks for the German armed forces.

(Reporting by Gianluca Lo Nostro and Jerome Terroy in Gdansk, editing by Milla Nissi-Prussak)