Siemens and O2 Telefónica sell 5G network slices to water utilities in new industrial model

Siemens and O2 Telefónica’s new partnership marks a significant shift in how network resources are delivered to industrial customers in Germany. By selling slices of public 5G networks to water utilities, the companies are pioneering a model that provides enterprise-grade connectivity without requiring dedicated private networks. This approach could transform how distributed industrial operations access critical communications infrastructure while accelerating the practical applications of Industry 4.0 technologies.

The big picture: Siemens is leveraging O2 Telefónica’s public 5G network to sell optimized connectivity slices directly to water utilities and wastewater treatment companies in Germany as part of a comprehensive industrial automation solution.

How it works: The partnership allows Siemens to maintain the customer relationship while selling portions of O2 Telefónica’s public 5G spectrum bundled with its AI-enhanced Industry 4.0 solutions.

• Siemens argues that these dedicated network slices deliver comparable performance to private 5G networks but are better suited for enterprises with distributed operations.
• The offering targets water utilities specifically because their operations are typically spread across multiple locations where private networks would be impractical or cost-prohibitive.

Key details: The collaboration extends beyond simple reselling of network capacity, positioning Siemens as both a solution provider and connectivity manager.

• O2 Telefónica will expand its 5G Standalone (SA) coverage specifically to accommodate Siemens’ industrial customers.
• The companies plan to jointly develop new applications that combine 5G network slicing with AI technologies for industrial automation.

Why this matters: This partnership represents a new business model for delivering enterprise-grade connectivity that could reshape how telecoms and industrial technology providers collaborate.

• Traditional private 5G networks work well for contained industrial environments but become impractical for utilities whose assets are spread across wide geographic areas.
• By leveraging public networks with dedicated slices, Siemens can deliver the quality-of-service benefits of private 5G without requiring customers to build and maintain their own infrastructure.

Industry implications: The water utility sector serves as the initial target, but the model could expand to other distributed industrial operations seeking advanced connectivity.

• The approach potentially solves the longstanding challenge of providing mission-critical communications to essential infrastructure that spans multiple locations.
• This business model creates new revenue opportunities for telecom operators by allowing them to monetize network capacity through industrial partnerships.