Tele2 is to provide M2M connectivity to the Vattenfall Group, one of Europe's largest generators of electricity and the largest producer of heat, after signing a major deal.

The Sweden-based operator’s M2M division plans to centralise all of Vattenfall’s M2M/IoT connectivity solutions for the entire European market.

It promised to deliver cost savings, scalability and increased simplicity of deployment.

Rami Avidan, Head of Tele2 M2M Global Solutions, commented: “The Vattenfall Group is one of the larger European players within the field of energy and utilities.

“We are extremely delighted that the Vattenfall Group has chosen Tele2 as the supplier for their connectivity across Europe. This contract is another proof point that Tele2’s global M2M offering is highly competitive and attractive on the market.”

The deal is a significant deal for Tele2’s M2M business, which launched around 12 months ago.

The company has not announced customer numbers but a spokesman told European Communications that the Vattenfall deal represented its second “major win”.

The financial performance of the M2M business have not been disclosed either, but the operator told Reuters earlier this year that it expects annual sales of around €110 million.

Tele2 uses Jasper Wireless technology to power its M2M platform. Last December, it signed a partnership agreement with India-based IT company Wipro.

The spokesperson said the operator did not deem it necessary to join operator alliances such as the M2M World Alliance or the Global M2M Association.

Tele2 is focusing on a wide range of verticals, he added, but is keeping healthcare “on the sidelines” for the moment.

Overall, the operator saw sales decline three percent in the first quarter of the year.

[Read more: Tele2 to focus on Netherlands, Kazakhstan as sale of Norway unit ongoing]

Click here to watch videos of Turkcell and Telefónica execs discuss M2M strategy

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