O2 Business, the company’s enterprise division, is running live network tests of 5G RedCap in collaboration with Power Plus Communications
German telco O2 Telefónica, owned by Spanish operator Telefónica, said it has become one of the first telecommunications providers to conduct a nationwide trial of 5G RedCap technology for Germany’s energy sector.
In a release, the German telco noted that this innovation is set to enhance mobile connectivity for utility companies by enabling seamless integration of smart meters, smart grid components, sensors and other essential devices within power grids and supply systems.
O2 Business, the company’s enterprise division, is running live network tests of 5G RedCap in collaboration with Power Plus Communications AG (PPC), a provider of smart meter gateways and communication solutions for the energy industry.
The telco also noted that the 5G RedCap variant is designed for applications that require high reliability and low latency but only need moderate data transfer speeds, typically a few megabits per second. The radio modules used for this technology are more cost-effective than standard 5G modules, making them ideal for scenarios currently reliant on 4G networks that do not need the full capabilities of 5G. As a result, 5G RedCap is particularly well-suited for Internet of Things (IoT) applications, enabling the efficient networking of sensors, smart metering systems and industrial machinery via 5G.
“RedCap is the key to digitizing and optimizing modern energy systems. We offer a streamlined 5G network of industrial sensors and IoT devices that is tailored to the actual application. With RedCap, we are paving the way for the digital transformation of the energy industry by enabling us to quickly and inexpensively network thousands of devices in the utility sector using the latest standard. At the same time, energy companies are investing long-term in the particularly future-proof 5G technology,” said Sven Koltermann, head of IoT at O2 Telefónica.
Currently, most smart meters are connected via 4G/LTE, but in the future, they will also operate over 5G RedCap. O2 Business said it is making the technology available for testing through its nationwide 5G standalone network this year, allowing energy suppliers to experience real-world implementation.
Until now, trials of 5G RedCap have been limited to laboratory settings, O2 Telefónica said, adding that it had conducted its first live network test in early 2024 and has since been gradually expanding device compatibility.
O2 Telefónica explained that all households in Germany must replace traditional meters with smart meters by 2032. These advanced systems will allow energy providers to monitor and control electricity demand dynamically, even when users are mobile.
The data from these meters is transmitted to central smart meter gateways, which oversee and regulate grid operations. This infrastructure is essential for integrating renewable energy sources such as solar panels, heat pumps and electric vehicle charging stations into the grid. Through 5G RedCap, utility providers can establish stable and efficient communication networks, ensuring that smart meters operate seamlessly, the company added.
In October 2023, O2 Telefónica announced the launch of its 5G SA network in the country under the 5G Plus brand. Until this launch, the German telco had been offering 5G services through the NonStandalone (NSA) 5G architecture partly via its LTE/4G core network.
The carrier’s 5G Plus uses frequencies in the 700 MHz, 1.8 GHz and 3.6 GHz bands.
The telco said it expects its 5G SA service to reach full coverage in Germany by the end of 2025.
