Telit power problem

I am using a Telit GE865 GSM module which I have connected to a USB FT232 (Sparkfun# BOB-0718). I have connected the 3.3V power and the TX/RX from the BOB-0718 and I get a serial connection with no problems. Now that I have things working I am looking to use a seperate power supply and in my case I intend to use a lipo single cell battery. I left the RX/TX connections to the BOB-0718 and connected the Telit to the battery. I verified with a voltmeter that the Telit is getting power but I can no longer get a serial connection. As soon as I take the 3.3V power from the BOB-0718 I get the connection right back. Why would it matter where I get power from? Any help would be appreciated, thanks!