Our homes are becoming increasingly connected. From lighting fixtures to refrigerators, virtually any and every household device and appliance now exists in intelligent versions capable of connecting to the Internet via Wi-Fi. Within Southeast Asia, growth in the intelligent home services market has not only been palpable, but is also accelerating.

For telecommunications providers, the rapid emergence of a nascent intelligent services market in Southeast Asia represents a clear opportunity to define – or in some cases, redefine – their role as ecosystem participants beyond their traditional functions as connectivity providers.

To realise this value, however, telecommunications providers must, first and foremost, evolve beyond current efforts in this space – specifically, their existing focus on device-centric models – and towards new platform-centric models that will enable them to entrench themselves as end-to-end service providers within the broader ecosystem.

A four-pillar approach for the evolution from Interoperable Platform Developer to Managed Services Provider

In a recent global benchmarking study conducted by Deloitte Southeast Asia on the business models and value propositions of 18 leading telecommunications players across the globe, we found that telecommunications providers in the intelligent home services market can broadly be categorised into three different archetypes: Marketplace Provider, Interoperable Platform Developer, and Managed Services Provider.

Based on observations of mature intelligent home services markets across the globe, it is irrefutably clear that players who had moved decisively into either Interoperable Platform Developer or Managed Services Provider models at an early phase tend to be the ones who have been more successful at unlocking new revenue streams.

In this report, we will present a structured, four-pillar approach that we have developed to support telecommunications providers in Southeast Asia in their evolution towards the Interoperable Platform Developer and Managed Services Provider archetypes: