Telefonica receives E1.78 billion smart meter communications contract in UK
Sep 27, 2013 (MarketLine via COMTEX) --
Telefonica, SA, a broadband and telecommunications provider, has announced that its UK business has received E1.78 billion, or GBP1.5 billion, contract to deliver smart meter communications services in the UK.
Telefonica today signed the 15 year agreement which represents the industry's largest M2M contract win to date. Telefonica UK has been awarded two out of the three communications service provider lots within the overall UK Smart Meter Implementation Programme (SMIP) tender. The initiative is the world's most ambitious smart meter roll out which will see over 53m smart meters installed across the UK by 2020.
The GBP11 billion programme is expected to deliver a net benefit to the UK of GBP6.7 billion through reduced energy consumption and more efficient management and deployment of energy across the country. It is estimated that a smart meter enabled industry could save 2bn tonnes of CO2 a year in 2020.
Telefonica UK will provide the communications infrastructure to connect smart meters in the central and southern regions of Great Britain. The technology solution which was successfully selected by DECC is primarily based on Telefonica UK's existing cellular network complimented with mesh technology used to provide connections in hard to reach areas.
The combination of cellular and mesh represents the ideal communications technology for smart meter deployments. Telefonica has successfully tested both technologies in relation to smart meters and already connects over 400,000 smart meters in Great Britain via cellular, while the mesh solution has been successfully implemented in over 650,000 households in the Nordics.
Machine-to-Machine is a key focus area for Telefonica Digital, the division formed to drive Telefonica's transformation to becoming a digital telco. The UK smart meter deal is the latest in a number of high profile contract wins following the formation of the unit, including Dell and General Motors' On Star.
Commenting on the deal, Matthew Key, Chief Executive of Telefonica Digital said, "the Internet of things has the potential to transform society and we hope Telefonica Digital will be at the heart of this. Smart meters are a perfect example; they will become the foundation of a revolution in energy consumption and management, helping consumers and businesses to more efficiently manage their energy usage with significant economic and environmental benefits."
Key continued, "this deal is a huge endorsement of the decision to form Telefonica Digital which gave us the right structure and focus on M2M to take our capabilities inthis area to the next level. From technology innovation in platforms through to dedicated sales teams and partnerships we have the right components in place to lead in this area and meet the needs of customers across a wide variety of sectors. We look forward to supporting additional smart meter deployments in other Telefonica markets."
With the agreements now in place, Telefonica will immediately start working with the Data Communications Company (Smart DCC Limited) and the other successful service providers to design, build and test the solution. Mass roll out of smart meters will commence during 2015.
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