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Internet of Things : Opportunities and Insights for Communication Service Providers in Malaysia

  • September 2015
  • -
  • Frost & Sullivan
  • -
  • 46 pages

Summary

Table of Contents

Internet of Things : Opportunities and Insights for Communication Service Providers in Malaysia


The Asia-Pacific ICT sector is getting increasingly mature. Revenue growth from traditional ICT sectors is projected to be flat and participants can no longer rely on their core areas to increase shareholders' value. Hence, there is a need for new sources of revenue to stay relevant. IoT offers opportunities for ICT companies to transform industries by leveraging on technology as an enabler of growth. IoT in the Asia-Pacific region is projected to grow at a CAGR of 35.1% between 2014 and 2020. Countries in Southeast Asia will be expected to reap the highest growth rate between 40 to 49%. IoT in Malaysia is expected to benefit from various government-driven initiatives, with Smart Transportation and Smart Energy leading this area.

Key Findings

System integration capabilities will be essential in getting into the platform play.
- Partnership is the dominant strategy of telcos. However, control will be limited and profit sharing will dilute returns.
- Metrics to measure performance and capabilities will require changes from telco-centric set to a set that encompasses convergence.
- Opportunities in content distribution, Big Data analytics, and offering wearables as a subscription product represent a new revenue stream for telcos.
- The Information and Communications Technology (ICT) landscape is getting increasingly mature as revenue growth from core sectors are slowing down and competition from participants are getting more intense. However, Internet of Things (IoT) offers opportunities in the form of new business services.
- Connectivity offers new business models for the non-ICT industry. However, many parties are not aware of the benefits they bring and, hence, telecom operators have to educate them on their capabilities.

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