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since 2009
Friday, September 11, 2026

CPFL Builds a Private 5G-Era Network to Modernize Its Grid

By · July 24, 2026 · 4 min read

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Business

Key Facts

The deal. CPFL Energia will invest about R$60 million (US$12 million) in a private 450 MHz telecom network built with TIM Brasil.

The purpose. To digitalize its power-distribution grid with real-time monitoring and remote control.

The scale. It links 65 substations and about 2,500 smart grid devices across roughly 50 municipalities.

The reach. The network covers about 51,000 square kilometers and serves around 980,000 customers.

The states. The rollout spans São Paulo and Rio Grande do Sul.

A Brazilian power company is building its own private phone network, not for calls, but to make its grid smarter. CPFL Energia is spending R$60 million (US$12 million) with TIM on a CPFL private network to digitalize how it moves electricity.

Power grid substation
An electrical substation. (Photo: Wikimedia Commons)
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CPFL Energia is one of Brazil’s largest electricity distributors. Rather than rely on public mobile networks, it is building a private one to run its grid, a growing trend among utilities worldwide.

TIM Brasil, one of the country’s big carriers, will build and integrate it.

What a Private Utility Network Is

A private network is a dedicated radio system, here on the 450 MHz band, reserved for a company’s own machines rather than shared with the public. For a utility, that means reliable, secure links to equipment spread across the countryside.

The 450 MHz band is well suited to the job because its signals travel far and penetrate obstacles, ideal for rural substations and grid gear.

What It Will Do

The network will connect 65 substations and about 2,500 smart devices, monitored in real time from CPFL’s Integrated Operations Centers in São Paulo and Rio Grande do Sul.

That lets the company spot faults instantly and carry out procedures remotely, including during power cuts, cutting the time crews spend driving to sites.

Live Company IntelligenceCPFL Energia S.A — the full investor dossierInside: live share price, market cap, three-year financials, valuation, ESG and peer benchmarks — plus the latest Rio Times coverage.
C
◆ Live Company Intelligence
CPFL Energia
SA: CPFE3CPFE3UtilitiesUtilities – Regulated Electric
R$53.00B
Market cap

Valuation & profitability

Market capR$53.00B
Revenue (TTM)R$45.61B
P / E ratio8.8
Profit margin13.2%
Return on equity27.3%

Price & risk

52-wk low
$34.98
52-wk high
$53.07
Beta (volatility)0.10
200-day average$48.16

Revenue trend · 6y

20202025
Latest R$44.37B

Ownership

Institutions9.1%
Shares outstanding1.15B

Dividend

Yield7.9%
Payout ratio71.7%
Fwd. annual$3.73
What CPFL Energia does. CPFL Energia S.A., through its subsidiaries, operates as an energy company in Brazil. It operates through Distribution, Generation, Transmission, Commercialization, and Services segments. The company generates electricity through hydroelectric, solar, wind, and biomass sources. It also engages in operation and maintenance of electric energy transmission facilities; and commercialization of electricity. As of…
Data: RT fundamentals (CPFE3.SA) · figures in BRL · as of 11 Sep 2026More company intelligence →

The Footprint

The project spans roughly 51,000 square kilometers and serves about 980,000 customers, taking in regions such as Franca and Sorocaba in São Paulo and Uruguaiana and Santa Maria in Rio Grande do Sul.

At about R$60 million (US$12 million), it is a modest sum for the reach it buys.

Why It Matters

Smarter grids mean fewer and shorter outages, a direct benefit to customers and a regulatory expectation in Brazil.

The deal also shows how telecom operators like TIM are finding new business selling connectivity to industry, not just to phone users.

Why Utilities Build Their Own Networks

Power companies increasingly run private communications networks because public mobile signals can be patchy where grids sprawl, and because utilities need tight control over security. A dropped link to a substation is not the same as a dropped call.

Dedicated spectrum like the 450 MHz band lets a utility guarantee coverage for its own equipment, independent of consumer traffic. That matters most during storms, when public networks are congested.

The payoff is a smarter grid that detects faults, reroutes power and restores service faster, cutting the outages regulators penalize. Real-time data also helps schedule maintenance before equipment fails.

For TIM, such deals open a business selling connectivity to industry, a steadier line than chasing phone subscribers. Expect more utilities and carriers to strike similar arrangements as grids digitize.

Frequently Asked Questions

What is CPFL building with TIM?

CPFL Energia is investing about R$60 million (US$12 million) in a private 450 MHz telecom network, built and integrated by TIM Brasil, to digitalize its power-distribution grid.

What will the private network do?

It will connect 65 substations and about 2,500 smart grid devices for real-time monitoring and remote control, letting CPFL detect faults instantly and act remotely, including during outages.

How big is the project?

The network covers about 51,000 square kilometers and serves around 980,000 customers across roughly 50 municipalities in São Paulo and Rio Grande do Sul.

Sources

Connected Coverage

Sources: CPFL Energia; TIM Brasil.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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