Evaluation Of Investment In IoT Startup at PT TMI
Smartphone revolution, the rise of OTT (Over the Top) technology, and growth of mobile application drive explosion in data demand and erosion of legacy service, which voice and SMS (Short Messaging Service) revenue. It forces mobile telecommunication operators to explore new revenue sources through new business development by taking the opportunity across technology, media, and telecommunication (TMT). Telkomsel Mitra Inovasi (TMI), Telkomsel Corporate Venture Capital (CVC), conducts non-organic business development through investment in an early-stage startup from TMT sectors. January 2020, TMI followed in Series B1 funding of the Internet of Things (IoT) startup. The investment evaluation utilizes two factors which capital gain and incremental revenue to existing Telkomsel business. There is uncertainty in financial return on high-risk investments in a new startup company, and existing Telkomsel IoT provides smart connectivity services. However, connectivity will become increasingly commoditized, declining from 9% of total IoT revenue in 2018 to 5% in 2025. Consequently, Telkomsel IoT should expand its role to seize the incremental revenue opportunities. This research project uses discounted cash flow (DCF), secondary data to predict expected financial return after capturing possible risk investment for sound management decisions.
AVSystem, 2019, What is IoT architecture?, https://www.avsystem.com/blog/what-is-iot-architecture/ [Accessed on 12 February 2020]
Damodaran, Aswath, 2010, Applied Corporate Finance – Third Edition, New Jersey, USA: John Wiley & Sons, Inc.
Das, K., Wibowo, P., Chui, M., Agarwal, V., and Lath, V., 2019, Automation and the future of work in Indonesia Jobs lost, jobs gained, jobs changed, https://www.mckinsey.com/~/media/mckinsey/featured%20insights/asia%20pacific/automation%20and%20the%20future%20of%20work%20in%20indonesia/automation-and-the-future-of-work-in-indonesia-vf.ashx [Accessed on 21 April 2020]
Ekholm, B., and Rockström, J., 2019, Digital technology can cut global emissions by 15%. Here’s how, https://www.weforum.org/agenda/2019/01/why-digitalization-is-the-key-to-exponential-climate-action/ [Accessed on 24 March 2020]
GSMA Intelligence, 2019, The Mobile Economy 2019, https://data.gsmaintelligence.com/api-web/v2/research-file-download?id=51249388&file=2915-260220-Mobile-Economy.pdf [Accessed on 23 March 2020]
Hambrick, Donald C., and Fredrickson, James W., 2005, Are you sure you have a strategy?, https://pdfs.semanticscholar.org/564c/83c48e6a3c8dc3ca2cc39d4470f150f6a352.pdf [Accessed on 28 March 2020]
Hwang, Yitaek, 2020, Cellular IoT Explained – NB-IoT vs. LTE-M vs. 5G and More, https://www.iotforall.com/cellular-iot-explained-nb-iot-vs-lte-m/ [Accessed on 23 March 2020]
Jatmiko, Leo D., 2019, Mengapa IoT Belum Digunakan Maksimal di Manufaktur Indonesia?, https://teknologi.bisnis.com/read/20190712/84/1123371/mengapa-iot-belum-digunakan-maksimal-di-manufaktur-indonesia [Accessed on 1 March 2020]
Kementerian Komunikasi dan Informatika Republik Indonesia, 2019, Potensi Pasar Internet of Things di Indonesia Capai Rp 444 T, https://www.kominfo.go.id/content/detail/15354/potensi-pasar-internet-of-things-di-indonesia-capai-rp-444-t/0/sorotan_media [Accessed on 12 February 2020]
Kementrian Perindustrian Republik Indonesia, 2018, Teknologi IoT Solusi Pengembangan Industri Masa Depan, https://kemenperin.go.id/artikel/19902/Teknologi-IoT-Solusi-Pengembangan-Industri-Masa-Depan [Accessed on 1 March 2020]
Kementrian Perindustrian Republik Indonesia, 2019, Making Indonesia 4.0 - Kementrian Perindustrian, 2018, https://www.kemenperin.go.id/download/Making_indonesia_brief_Bahasa_Indonesia.pdf [Accessed on 12 February 2020]
Kusumawati, D., Winarko, B., Wahab Riva'atul A., and Pradono, W., 2017, Analisis Kebutuhan Regulasi Terkait dengan Internet of Things, https://online.bpostel.com/index.php/bpostel/article/view/150205/300 [Accessed on 12 February 2020]
Telkomsel, 2019, Company Profile. Available from https://www.telkomsel.com/mybusiness/solution-enterprise/internet-things-iot [Accessed on 25 April 2020]
Telkomsel, 2019, Annual Report 2018, https://www.telkomsel.com/about-us/investor-relations [Accessed on 14 November 2019)
This work is licensed under a Creative Commons Attribution 4.0 International License.