Deutsche Telekom is set to unveil details of the first telecom operator outside Germany that will launch smart home services based on its Qivicon platform, Light Reading has learned.

Telekom Deutschland GmbH , the operator's German business, is currently the only service provider offering services based on Qivicon -- an open-source initiative that has now attracted nearly 40 partners -- although Austria's eww Group, an energy provider, became the first company to introduce Qivicon-compatible services outside Germany earlier this month.

Deutsche Telekom AG (NYSE: DT) has, of course, been trying to drum up interest elsewhere and says partnerships with other players outside Germany are "coming."

"A major telco in Europe will launch on Qivicon," said Holger Knoepke, the vice president of Deutsche Telekom's connected homes business, during a meeting with Light Reading in London earlier today. "There will be an announcement very soon and definitely this year."

This is not the first time, however, that Deutsche Telekom has indicated a service launch by an international partner is forthcoming.

In March, Deutsche Telekom told Light Reading that it would announce details of a partner launch in the Netherlands by June and that Qivicon-based services would become available in the UK by the end of the year. (See DT to Bring Smart Home Into Netherlands, UK.)

An announcement about the Netherlands failed to materialize, raising the possibility a deal fell through or that a Dutch service provider is the "major telco" to which Knoepke refers.

Besides Deutsche Telekom's T-Mobile Netherlands subsidiary, Dutch incumbent KPN Mobile and Vodafone Netherlands also provide telecom services in the Netherlands.

Given the operator's comments in March, another possibility is that the new telco partner operates in the UK, where Deutsche Telekom's EE joint venture with Orange (NYSE: FTE) competes against fixed-line incumbent BT Group plc (NYSE: BT; London: BTA) and mobile operators Three UK , Telefónica UK Ltd. and Vodafone UK .

BT is currently in the process of acquiring EE in a £12.5 billion ($19.4 billion) deal that will leave Deutsche Telekom with a 12% stake in the combined entity. (See BT Locks Down £12.5B EE Takeover Deal.)

The operator remains the UK's fixed broadband market leader and is keen to provide a broader range of connected-home services to customers, although its current focus appears to be on expanding its line-up of TV offerings so that it can better compete against pay-TV giant Sky . (See BT Unveils UHD TV Prices in Challenge to Sky and BT Demands Action on Sky's Pay-TV Dominance.)

Telefónica, meanwhile, emerged as a major player in the UK's smart energy market after securing a £1.5 billion ($2.3 billion) contract in August 2013 to provide the communications infrastructure for smart meter services in southern and central parts of the country.

It has previously indicated that home hubs used to provide connectivity for smart meters could support a range of other smart home services.

Spanish parent Telefónica this time last year revealed plans to conduct European trials of a connected home platform developed by leading US service provider AT&T Inc. (NYSE: T), which -- like Deutsche Telekom -- aims to license its technology to other telcos.

One concern at the time may have been whether AT&T's platform would meet European requirements and Knoepke emphasizes the attractions of Deutsche Telekom's technology in that regard.

"When you talk to European providers they want a platform provider that is in their time zone -- not in the US," he says. "The requirements at a broad level are the same in terms of monitoring, efficiency and security, but if you look below, it's sometimes different with regulations about data security and privacy. You need to comply with all those requirements on a European level."

Deutsche Telekom has repeatedly drawn attention to its security credentials when touting for business, pointing out that data centers storing customer details are based in Germany, which has some of the world's most stringent laws on data protection.

Next page: Telcos showing most interest in Qivicon

Telcos showing most interest in Qivicon
Knoepke says that the most interest in providing smart home services on the Qivicon platform is currently emanating from telcos, followed by utilities, "a couple of insurance companies and a couple of retailers."

In the UK market, energy retailers represent an "immense opportunity" for Qivicon because they are taking responsibility for the installation of smart meters in customer homes, according to Jon Carter, the UK head of business development for Deutsche Telekom's connected homes business.

"Energy retailers are looking to invest in smart home hubs and so there is a significant opportunity for utilities in the UK to start offering smart home services by leveraging the devices they are putting in," he says. "The open platform allows us to be very innovative about the business model that supports it."

Besides eww in Austria, five utilities are now providing Qivicon-based services to customers in Germany, says Carter.

Deutsche Telekom collects monthly royalties from Qivicon licensees but says it is looking at new business models.

It also generates smart home revenues from Telekom Deutschland customers, who can pay a one-off fee to enjoy one of several smart home packages that are currently available.

This business model also appears to be evolving, however, with Knoepke acknowledging that "quad-play" -- the term used to describe offerings that include fixed voice, broadband, mobile and TV services -- could become "quintuple-play" in future, with smart home services added to the mix.

He is also optimistic that smart home services will help to revive Telekom Deutschland's connected homes business as consumers start to appreciate their benefits.

Connected homes forms one of Deutsche Telekom's strategic "growth areas," but revenues in this area -- which are today derived largely from broadband and TV subscriptions -- have flat-lined in recent quarters.

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Knoepke would not disclose details of Qivicon revenues, which are currently booked at Deutsche Telekom's Digital Business Unit, or indicate how many Telekom Deutschland customers are using smart home services, but said he was "happy" with the revenue performance so far.

Revenues at the Digital Business Unit fell sharply from €970 million ($1.09 billion) in 2013 to €635 million ($711 million) last year -- a decline triggered by the sale of the Scout24 classifieds business in November 2013.

Deutsche Telekom undoubtedly faces strong competition in the smart homes market from a variety of technology players, including behemoths like Apple Inc. (Nasdaq: AAPL) and Samsung Corp. , and Knoepke thinks there will be room for only three to five platforms globally in the next five to seven years.

Besides highlighting Deutsche Telekom's ability to satisfy European regulatory requirements, Knoepke also cites the operator's commitment to the use of open-source technology when asked why he is confident Qivicon will thrive.

"We use a lot of open source technology and are much more open that some of the US players," he says.

— Iain Morris, , News Editor, Light Reading