Telecommunications provider o2 Telefónica is one of the first companies to launch a nationwide trial of the “5G RedCap” variant of 5G technology for German energy utilities. 5G RedCap will improve mobile connectivity for utilities. The technology enables the seamless networking of smart meters and smart grid components, sensors, and other devices in power grids and utility infrastructure. The business customer division, o2 Business, is testing the new 5G RedCap connectivity on o2 Telefónica’s live network in collaboration with its partner, Power Plus Communications AG (PPC). PPC is the leading provider of smart meter gateways and communication technology for the energy industry. The companies will showcase their solutions from February 11 to 13 at E-world energy & water 2025 in Essen.
The RedCap variant of 5G technology is particularly well-suited for applications that require high reliability and low latency but only need data transfer rates of a few megabits per second. As a result, the 5G radio modules used are more cost-effective than standard 5G radio modules. They are optimized for use cases that are currently connected primarily via 4G and do not require the full technological capabilities of the 5G standard. This makes RedCap particularly well-suited for Internet of Things (IoT) applications, enabling the efficient networking of sensors, smart metering systems, and machines via 5G.
“RedCap is the key to the digitalization and optimization of modern energy systems. We offer streamlined 5G connectivity for industrial sensors and IoT devices, tailored to their actual applications. With RedCap, we’re paving the way for the digital transformation of the energy sector by enabling us to quickly and cost-effectively connect thousands of devices in the utility sector using the latest standard. At the same time, energy companies are making a long-term investment in 5G technology, which is particularly future-proof,” says Sven Koltermann, Head of IoT at o2 Telefónica.
“We are pleased to be working with o2 Business to tackle innovations such as 5G RedCap and to evaluate emerging trends in telecommunications early on for smart meter gateways. Together, we are developing smart solutions that enable consumers to become active partners in the energy transition and in ensuring resilient grid operations,” says Ingo Schönberg, CEO of PPC.
Out of the Lab: 5G RedCap in Live Mobile Network Operations
This year, o2 Business can offer RedCap for testing purposes via o2 Telefónica’s nationwide 5G standalone network, thereby putting the technology through its paces in live operation with interested energy providers. Until now, such tests have been conducted exclusively in the lab. o2 Telefónica first tested 5G RedCap on its live network in the spring of 2024. Since then, the company has gradually expanded compatibility with new devices.
The smart meter rollout is essential for Germany’s energy transition. The new technology enables utilities to remotely measure and control electricity consumption and demand in private households. By 2032, all German households must replace their conventional meters with smart meters. The data is collected at the utilities’ central smart meter gateways, which monitor and regulate grid operations. This is the only way to efficiently integrate photovoltaic systems, heat pumps, and wallboxes into the energy system. In this way, utilities are laying the groundwork for stable and high-performance communication networks through which smart metering systems communicate. Only then can consumers benefit from flexible rate plans and optimized electricity usage.
