Spanish telco Telefónica (NYSE: TEF) and compatriot agricultural and environmental technology company Tragsa have signed a collaboration agreement to work together on developing technology infrastructure, the companies said in a joint statement.
Telefónica will support Tragsa in telecommunications and IT management and will also allow the company to accelerate and consolidate its international expansion, particularly in some regions of Latin America.
Under the agreement, the companies will work on deploying infrastructure, communication services and emerging technologies that contribute to creating engineering and technical assistance for rural development, environmental and agricultural improvement, aquaculture, and the food sector, among others.
The companies will collaborate on projects and solutions based on machine-to-machine (M2M) technologies or on the "Internet of Things" (IoT) for efficient management of water resources and irrigation.
IoT comprises a series of independent systems operating with their own infrastructures, which are partly based on existing internet infrastructure. IoT can be implemented in symbiosis with new services, covering three types of communication - things-to-person, thing-to-thing and machine-to-machine.
Telefónica and Tragsa will also develop mobility solutions for management applications, perimeter security and computer applications.
With the agreement, Telefónica will extend the scope of its ICT efficiency and productivity solutions to new areas related to environmental protection.