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The U.K. Department of Energy and Climate Change (DECC) has announced the preferred communication providers for its mass rollout of smart meters. Between 2015 and 2020, the U.K. plans to deploy 53 million units.

The provisional deals, to be finalized in September, went to the following companies:

- Capita PLC has been selected as the preferred “DCC Licensee,” which will manage the smart metering service of its users and will contract with, and manage, the data and communications service providers. The estimated value of the deal over 12 years is approximately £175 million.

- CGI IT UK Ltd. has been selected as the preferred bidder for the Data Service Provider contract and will develop and operate the system controlling the movement of messages to and from smart meters. CGI will now be invited to form a contract with the DCC Licensee. The estimated value of this contract over eight years is approximately £75 million.

- Arqiva Ltd. has been selected as the preferred bidder for the Communications Service Provider contract for the North region (north of England and Scotland) and will provide wide-area communications to and from the smart meters. The estimated value of this contract over 15 years is approximately £625 million. In conjunction with Arqiva, Sensus will provide its FlexNet communications technology.

- Telefonica UK Ltd. has been selected as the preferred bidder for the Communications Service Provider contracts for the Center (Midlands, East Anglia and Wales) and South (south of England) regions. The estimated value for these two contracts over 15 years is approximately £1.5 billion.

- Gemserv Ltd. has been selected as the preferred bidder for the Smart Energy Code Administrator and Secretariat contract, which will maintain and update the industry code governing the use of smart meters across the energy industry. The estimated value of this contract is approximately £10 million over four years.

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