Australian Internet of Things (IoT) technology company X2M Connect Limited’s (ASX:X2M) wholly-owned subsidiary has been named as the successful bidder for a significant remote water monitoring tender covering 20,278 households in South Korea.
The tender is for an initial 20,278 out of a potential 232,028 city households and carries a value of 2.3bn Korean Won (approx. A$2.6m). It includes the X2M IoT platform, devices and 12 months of remote meter monitoring fees.
Prior to the end of this 12 month period, a new monthly SaaS fee will be agreed upon for ongoing monitoring.
The tender covers households in Jeonju City, which is located in the southern province of Jeollabuk-do where X2M has other major remote water monitoring customers of Gochang County and Gimje City.
X2M now has until December 8, to finalise and execute contracts that have largely been set out in the tender documents.
CEO, Mohan Jesudason, said the tender win demonstrates the performance of the X2M solution when assessed against the South Korean remote water monitoring evaluation criteria and follows the two similar K Water wins announced in October.
He said X2M’s strategy for water in South Korea is to secure deployments across many of the South Korean municipalities and then leverage the initial deployment to penetrate the balance of the municipality’s households.
The Total Addressable Market in this new customer city is 232,028 households with penetration following completion of this stage of deployment being 8.7% of households.
Were X2M to secure a contract to connect all households throughout the municipality, the estimated value of the future implementation across the remaining households is in excess of A$25m.
Mr Jesudason said the company expects opportunities to secure this to progressively present themselves over the next two to three financial years. X2M’s strong position in this market together with the incumbency this mandate delivers, positions it well to secure future opportunities. S
Securing this tender takes the total number of Enterprise and Government customers across the X2M group to 40 with an addressable market of in excess of 25m households.
This is another excellent result for our South Korean subsidiary. Winning a number of these tenders in quick succession shows our leadership position in this market. This also aligns with our long- term strategy to secure customers with large numbers of households that will drive future subscription revenues. This tender plus our Q1 and other contracted revenues now total $7.8m,” Mr Jesudason said.