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Detecon: M2M Growth in Southeast Asia in Need of Regulatory Incentives

by david.nunes

M2M Growth in Southeast Asia in Need of Regulatory Incentives

•          Virtually no specific regulations for M2M
•          International M2M roaming agreements needed
•          Open mobile network codes simplify a switch from one provider to another  

Bonn/Eschborn, 19 February 2012. Unless the countries in Southeast Asia create a specific regulatory framework, machine-to-machine communication (M2M) will be unable to develop into a successful market. More than any other factors, the high costs for switching providers and the expense of roaming – a consequence of the almost complete lack of specific M2M fees – are obstacles to M2M growth. In its analysis of regulatory factors, the management consultancy Detecon International has also identified the provision of an adequate number pool for M2M applications and the establishment of suitable integration platforms as important prerequisites.

Whether Singapore, Malaysia, Indonesia, or Thailand – none of these countries currently have a regulatory framework specific for M2M in place. However, Singapore and Malaysia, in contrast to Indonesia and Thailand, have developed bilateral M2M roaming regulations and launched various initiatives which, among other objectives, promote the technological infrastructure of M2M projects. “Thailand and Indonesia should follow this example by offering manufacturers and users dedicated M2M rates as well. Otherwise, there is no option but to fall back on expensive international roaming fees,” emphasized Markus Steingröver, Managing Partner at Detecon International. The allocation of additional 3G frequencies for M2M applications would be advisable for Thailand.

Detecon recommends the introduction of open mobile network codes (MNCs) as well so that users would be able to switch M2M providers. In this type of system, users or intermediaries would have their own MNC so that the expense and effort of replacing SIM cards in the M2M devices would become unnecessary. Users and providers in this case would simply buy M2M network services on the wholesale market.

General information about the regulatory aspects in the development of national markets for machine-to-machine communication can be found in Detecon’s opinion paper “Eliminating Regulatory Roadblocks for M2M Deployment” (www.detecon.com/m2m_deployment).

Detecon International GmbH
Detecon is one of the world’s leading consulting companies for ICT management consulting. Our services focus on consulting and implementation solutions which are derived from the use of information and communications technology (ICT). They encompass classic strategy and organization consulting as well as the planning and implementation of complex, technological ICT architectures and applications. Detecon’s expertise bundles the knowledge from the successful conclusion of management and ICT consulting projects in more than 160 countries. Detecon is a subsidiary of T-Systems International, the key account brand of Deutsche Telekom.

For additional information, go to:

Press contact
Detecon International GmbH
Gerhard Auer
Oberkasseler Strasse 2
D-53227 Bonn
Phone: (+49 228) 700-1013
Fax: (+49 228) 700-1017
E-mail: gerhard.auer@detecon.com



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