PPP and Concessions in Smart Metering: How to Deploy a District on LoRaWAN/NB-IoT Without Upfront Budget

How PPP works in smart metering projects

In a typical PPP scheme, the municipality or utility defines the technical task — for example, automating water and heat metering across 10,000 points. A private partner then finances, installs, and operates the system — including communication networks like LoRaWAN or NB-IoT — while providing maintenance and data services.

Payment for utility modernization projects is made over time, using part of the savings achieved. As utilities gain access to accurate, real-time data from their metering infrastructure investment, they reduce losses and operating costs. A portion of these savings is directed back to the partner to recover their investment. 

The result of using PPP for smart metering is a self-financing system that requires zero-capex deployment or upfront capital, and typically achieves full payback within 3–5 years. Eventually, ownership of the entire infrastructure — sensors, gateways, and software — is transferred to the city or the utility, ensuring long-term sustainability.

Why LoRaWAN and NB-IoT are ideal for PPP and concessions

These two communication technologies form the backbone of modern smart metering. LoRaWAN and NB-IoT are designed for low-power, long-range data transmission, ideal for meters and sensors that need to operate autonomously for years.

LoRaWAN deployment funding offers independence — a city or private investor can build and manage its own network without relying on mobile operators. On the other hand, NB-IoT leverages existing telecom infrastructure, reducing entry barriers and enabling rapid deployment.

In both cases, the result of these digital infrastructure partnerships is a scalable and robust ecosystem that can grow from a single building to an entire urban area, enabling real-time monitoring and efficient management of energy and water resources.

The business model: pay for results, not for hardware

The true innovation of the concession model for smart city financing lies in its service-based approach. Instead of purchasing equipment, the municipality or utility pays only for data collection as a service. The private partner supplies and installs the meters, communication modules, and software platform, and then charges based on actual usage — number of connected nodes or volume of data transmitted.

IoT infrastructure leasing turns what was once a capital expense into a predictable operational service. Even small towns can launch pilot projects with hundreds of endpoints without financial risk, while investors finance scaling. The utility gains precise data, reduces losses, improves billing accuracy, and builds transparency for consumers.

From pilot to smart city

A typical project involving LoRaWAN NB-IoT smart meters can start small — a single neighborhood or residential complex. Within months, the benefits of remote utility monitoring become visible: fewer manual readings, elimination of errors, higher payment collection rates, and better operational planning. 

At this stage, architecture matters. Interoperability, unified data protocols, and integration with existing ERP or billing systems must be ensured from the start. LoRaWAN and NB-IoT provide this flexibility, allowing the network to expand step by step — connecting new buildings, lighting systems, or parking sensors. This model for risk-sharing in metering projects is how the foundation of a smart city is built, where every cubic meter of water and every kilowatt-hour is monitored in real time.

Global experience shows that cities investing early in digital infrastructure and sustainable urban innovation gain both technological and economic advantages. A PPP or concession in vendor-financed smart metering is an opportunity to act now, without waiting for grants or tenders.

Private partners gain a predictable return on investment from long-term PPP contracts, municipalities receive a modern and sustainable infrastructure, and residents benefit from transparency and fairness in billing. 

Smart meters, radio modules, and IoT sensors become more than just devices — they are building blocks of a new ecosystem of trust and efficiency between utilities and citizens. And with an IoT concession model, you don’t need an upfront payment when financing LoRaWAN networks — just vision, partnership, and the right technology.