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<strong>Vodafone</strong> Global M2M<br />

<strong>Bglobal</strong> <strong>and</strong> <strong>Vodafone</strong> <strong>deliver</strong><br />

<strong>cost</strong> <strong>and</strong> <strong>carbon</strong> <strong>savings</strong> for<br />

businesses with smart metering<br />

UK case study


<strong>Vodafone</strong> Global M2M<br />

<strong>Bglobal</strong> is a UK company that helps businesses manage energy consumption<br />

through smart metering. It has worked with <strong>Vodafone</strong> to develop a machine<br />

to machine (M2M) solution which can help businesses to cut energy <strong>cost</strong>s<br />

<strong>and</strong> reduce <strong>carbon</strong> emissions. <strong>Vodafone</strong> itself has shown 10% <strong>cost</strong> <strong>savings</strong><br />

amounting to £2 million annually by reducing electricity consumption at its<br />

base stations due to smart metering.


3<br />

<strong>Bglobal</strong> <strong>and</strong> <strong>Vodafone</strong> <strong>deliver</strong><br />

<strong>cost</strong> <strong>and</strong> <strong>carbon</strong> <strong>savings</strong> for<br />

businesses with smart metering<br />

The need<br />

Businesses everywhere are under pressure to manage their<br />

energy consumption to reduce operating <strong>cost</strong>s <strong>and</strong> cut<br />

<strong>carbon</strong> emissions. Smart metering technology provides<br />

accurate bills <strong>and</strong> real-time information, helping companies<br />

to meet these goals.<br />

To take its own business as an example, electricity consumption<br />

is a major <strong>cost</strong> for <strong>Vodafone</strong> worldwide.<br />

In the UK, <strong>Vodafone</strong> has 12,000 base stations, with an annual<br />

electricity bill of around £20 million. Most of these sites are<br />

unmanned with restricted access, creating obvious difficulties in<br />

reading the meters manually. This means that <strong>Vodafone</strong> at some<br />

sites have had mostly estimated bills over many years.


<strong>Vodafone</strong> Global M2M<br />

“We see <strong>Vodafone</strong> as a partner not just a supplier.<br />

Their support has been second to none, <strong>and</strong> the<br />

reliability <strong>and</strong> resilience of the GPRS backbone<br />

network have been excellent.”<br />

Tony Stiff, Commercial Director, <strong>Bglobal</strong><br />

5% <strong>cost</strong> <strong>savings</strong> on bills due to improved<br />

accuracy of smart metering<br />

The Solution<br />

To monitor its electricity consumption,<br />

<strong>Vodafone</strong> installed remote Automated<br />

Meter Reading (AMR) equipment at its<br />

base stations in the UK.<br />

<strong>Bglobal</strong> manages the data collection, <strong>and</strong><br />

its equipment provide a reading every<br />

30 minutes. This data is transmitted over<br />

<strong>Vodafone</strong>’s GSM or GPRS network to a<br />

central server at <strong>Bglobal</strong>’s headquarters.<br />

The meter readings are provided to<br />

<strong>Vodafone</strong>’s electricity provider, which<br />

means the invoices are now accurate. As<br />

the previous estimated bills were too high,<br />

this means that <strong>Vodafone</strong> is on track to<br />

save around 5% on its bills simply due to<br />

the improved accuracy of smart metering.<br />

“While moving from estimated bills to<br />

accurate readings won’t always bring bills<br />

down, there is a tendency for estimates<br />

to be higher not lower,” said Tony Stiff,<br />

commercial director at <strong>Bglobal</strong>.<br />

“Whether bills are reduced or not,<br />

companies want accurate information<br />

for budgeting purposes.”<br />

There is a also a direct <strong>cost</strong> saving as<br />

<strong>Vodafone</strong> staff no longer need to arrange<br />

access to the base stations for meter<br />

readings, which <strong>cost</strong>s between £50 <strong>and</strong><br />

£100 for each visit.<br />

Reducing consumption<br />

The real-time data provided by the smart<br />

meters also allows <strong>Vodafone</strong> to monitor its<br />

power usage.<br />

This enables it to make more informed<br />

energy management decisions <strong>and</strong> put in<br />

place measures to reduce consumption,<br />

saving money <strong>and</strong> reducing the<br />

environmental impact of its base stations.<br />

The energy <strong>savings</strong> due to smart meters<br />

can be as simple as identifying where<br />

energy consumption is higher than<br />

expected <strong>and</strong> taking action.<br />

For example, one <strong>Bglobal</strong> customer<br />

investigated unexpected electricity usage<br />

in its offices overnight, <strong>and</strong> realised its staff<br />

were turning off their PC screens but not<br />

shutting down the computers themselves.<br />

Once this was addressed, the company’s<br />

electricity usage fell by more than 10%<br />

from this simple step.<br />

<strong>Vodafone</strong> has made further power <strong>savings</strong><br />

of at least £1 million annually by replacing<br />

air conditioning at some sites with fan<br />

cooling systems, which consume much<br />

less power.<br />

This saving has only been possible due to<br />

the data provided by the smart meters.<br />

“Usually we replace the settlement meter,<br />

which is the main meter at a site that<br />

gathers the data for billing,” said Stiff.<br />

“More sophisticated energy managers<br />

are putting additional smart meters into<br />

buildings or even on individual appliances,<br />

<strong>and</strong> this all feeds through to a single<br />

management system to help them<br />

monitor consumption.”


5<br />

“<strong>Vodafone</strong> has been a development partner for the<br />

smart metering service, <strong>and</strong> we have been able to<br />

work well together.”<br />

Tony Stiff, Commercial Director, <strong>Bglobal</strong>


<strong>Vodafone</strong> Global M2M<br />

<strong>Vodafone</strong> is working with <strong>Bglobal</strong><br />

to provide smart metering<br />

solutions worldwide<br />

Reliable network<br />

A smart meter must be connected<br />

reliably to a central data collection point,<br />

<strong>and</strong> this requires an effective two-way<br />

communications infrastructure.<br />

<strong>Vodafone</strong> has 20 years of proven<br />

experience in M2M communications,<br />

<strong>and</strong> can provide the network<br />

coverage <strong>and</strong> resilience required<br />

for metering applications.<br />

“<strong>Vodafone</strong> has been a development<br />

partner for the smart metering service, <strong>and</strong><br />

we have been able to work well together,”<br />

commented Stiff.<br />

In terms of coverage, <strong>Bglobal</strong> has found<br />

that the frequency used by <strong>Vodafone</strong><br />

helps with the penetration of the mobile<br />

signal inside businesses <strong>and</strong> homes,<br />

when compared to other network<br />

providers in the UK.<br />

Carbon reductions<br />

As well as <strong>cost</strong>, <strong>carbon</strong> is a major focus<br />

for enterprises. Around 5,000 of the<br />

UK’s largest businesses, as well as<br />

thous<strong>and</strong>s of public sector organisations,<br />

fall within the scope of the UK’s Carbon<br />

Reduction Commitment.<br />

This is a compulsory scheme requiring<br />

the businesses to reduce their emissions<br />

or buy allowances, providing an added<br />

financial benefit to cutting <strong>carbon</strong>.<br />

The scheme includes an annual ‘league<br />

table’ of emissions performance which<br />

determines the size of any fines for<br />

excessive <strong>carbon</strong> emissions.<br />

Outside the UK, there is similar<br />

government action putting pressure on<br />

businesses to cut emissions. <strong>Vodafone</strong><br />

is working with <strong>Bglobal</strong> to provide smart<br />

metering solutions worldwide, helping<br />

companies to reduce <strong>carbon</strong>, cut<br />

energy bills <strong>and</strong> manage their energy<br />

consumption more effectively.


7<br />

Key Benefits<br />

• <strong>Vodafone</strong> has saved at least £2<br />

million annually on its UK energy<br />

bills due to smart metering solutions<br />

from <strong>Bglobal</strong><br />

• <strong>Vodafone</strong> has reduced its <strong>carbon</strong><br />

emissions <strong>and</strong> the environmental<br />

impact of its base stations<br />

• <strong>Vodafone</strong> has been able to more<br />

efficiently manage its resources due<br />

to the accurate, real-time metering<br />

data provided by <strong>Bglobal</strong><br />

• <strong>Vodafone</strong>’s payback time in the UK<br />

from investing in smart meters was<br />

less than one year.<br />

“More sophisticated energy managers are putting additional<br />

smart meters into buildings or even on individual appliances,<br />

<strong>and</strong> this all feeds through to a single management system<br />

to help them monitor consumption.”<br />

Tony Stiff, Commercial Director, <strong>Bglobal</strong>


UK case study<br />

m2m.vodafone.com<br />

m2m_0001/08/10_8<br />

<strong>Vodafone</strong> Group 2010. This document is issued by <strong>Vodafone</strong> in confidence <strong>and</strong> is not to be reproduced in<br />

whole or in part without the prior written permission of <strong>Vodafone</strong>. <strong>Vodafone</strong> <strong>and</strong> the <strong>Vodafone</strong> logos are<br />

trademarks of the <strong>Vodafone</strong> Group. Other product <strong>and</strong> company names mentioned herein may be the<br />

trademarks of their respective owners. The information contained in this publication is correct at time of<br />

going to print. Such information may be subject to change, <strong>and</strong> services may be modified supplemented<br />

or withdrawn by <strong>Vodafone</strong> without prior notice. All services are subject to terms <strong>and</strong> conditions, copies of<br />

which may be obtained on request.

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