Telcos look to cash in on M2M boom as Smart Nation agenda reaches full throttle

Which telco would gain the lead?

With the city-state’s Smart Nation program rolling, growth opportunities are simply handed to both incumbent and budding telcos in a silver platter.

According to analysts from BMI Research, along with the Smart Nation initiative, machine-to-machine (M2M) services are ready to boom and will contribute to a growing portion of telcos’ enterprise business.

BMI Research further emphasised that M2M services are the cornerstone of the country’s Smart Nation agenda, highlighting the need for a nationwide sensor network.

“The platform will be utilised to power the hyper-connectivity needed to maximise efficiencies in key sectors including transport, logistics, utilities and healthcare. The Infocomm Development Authority (IDA) has enlisted SingTel, StarHub, M1 and MyRepublic in running Heterogeneous Network (HetNet) trials from Q3-Q415, which will facilitate uninterrupted and seamless connectivity between wireless networks,” BMI said.

Meanwhile, BMI Research said telco giant SingTel is currently ahead in the country’s budding M2M market, while its competitor StarHub is slowly gaining traction.

“SingTel’s Singapore Enterprise segment grew by 3.0% y-o-y to SGD1.146bn in Q315 driven by higher ICT (comprising managed services and business solutions) and data internet revenues,” BMI said.

“On the other hand, although competitor StarHub records lower data and Internet revenue at SGD85mn in Q315, the segment experienced 5.1% y-o-y growth driven by enterprises taking subscriptions for internet services and managed services,” they added.

M1, the smallest of the telco triumvirate has also launched its M2M platform, BMI said.