Following an open competitive tender, Ericsson was chosen to design and integrate a multivendor wireless access network for EnergyAustralia.
The network will enable two-way communications between electrical control devices, back-end systems and households.
In a statement to Government News, EnergyAustralia said the telecommunications network was the backbone of the smart grid.
"This allows real-time data from its substations and field devices to be sent back so our IT systems can turn that data into useful information for planners, field staff and consumers," the spokesperson said.
"It will also allow a faster response to power outages, support potential changes in the grid from renewable energy and electric vehicles and will give households more information and control over their appliances and energy use."
According EnergyAustralia 15 sites in the Newcastle were chosen for the The Long Term Evolution (LTE) trial.
"After the trial we will assess the technology to decide whether it is rolled out across EnergyAustralia's entire network," he stated.
"One of the major benefits for choosing this LTE platform is its approach to cyber-security - a key consideration in selecting technology for the electricity industry."
The LTE comes built with the latest security improvements and EnergyAustralia is adding further controls and measures for data protection.
"By using the same LTE technology as mobile carriers, we will also benefit from economies of scale for chip, device and equipment pricing as 3G networks around the world migrate to LTE," the spokesperson stated.
EnergyAustralia's 4G network will cover the five locations that are part of the Smart Grid, Smart City project - Newcastle, Scone, Ku-ring-gai, Newington and Sydney CBD.
The contract is for an initial three years with an option to renew for a further two years.