Telefónica will supply infrastructure company Ferrovial with a range of communications services after winning a five-year deal.

The Spain-based operator will provide fixed and mobile technology, collaboration tools and new workplace services as well as cyber security and cyber surveillance solutions to the toll roads to airports business.

Both companies also promised to examine how they could collaborate in the areas of big data, the IoT and smart cities.

Ferrovial created a “digital hub” last year in a bid to analyse how emerging technologies such as AI, drones and 3D printing can lead to new business opportunities.

Its CEO Íñigo Meirás (above, left) said the agreement would enable it “to pursue our expansion strategy in a very agile, flexible way, providing new services that will support our ongoing digital transformation process”.

Financial details of the deal were not disclosed.

José María Álvarez-Pallete, Chairman of Telefónica (above, right) said all companies must "transform and adapt to the new digital environment in order to address emerging challenges”.

He added: “This alliance makes both companies more competitive and innovative within the technology and infrastructure fields.”

[Read more: Telcos must walk the digital transformation walk]

Telefónica saw like-for-like revenues rise 1.3 percent to €52 billion last year.

It does not break how sales from enterprise customers.

In January, Telefónica won a deal to provide telematics to car hire company Hertz in Mexico.

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