Enterprise business accounted for 20.6% of the total revenues across 25 leading telcos in Asia Pacific in H1 2022 (first 6 months of the year 2022). Telcos continue to make good strides in enhancing their enterprise business portfolio as they seek to unlock the full potential of 5G.

With this report, twimbit seeks to highlight and celebrate the success of telcos driving revenues from enterprise segment in H1 2022

Assumptions and methodology

1. We studied 40 telcos across 16 Asia Pacific countries. 25 out of the 40 telcos had made progress in establishing and reporting their enterprise business revenues. 
2. Enterprise is defined as services provided to the business customers (large, mid and small businesses). It excludes all the B2C revenues.
3. For the purposes of the analysis, we further segmented the telco enterprise business into two distinct categories, viz.,

• Total enterprise (connectivity+ non-connectivity): Includes voice, fixed-line, data communications (including leased lines, IP-VPN, SD-WAN, etc) provided explicitly to enterprise customers. It also includes beyond connectivity services like managed services, IoT, etc, provided to businesses.
• Enterprise non-connectivity: This is defined as beyond core connectivity services provided to the enterprise customers. It mainly comprises of cloud, managed services (collaboration, contact centers, other IT services and applications), IoT, cyber-security, etc. Excludes all the connectivity solutions provided to business customers

Enterprise accounts for 20.6% of total revenue in H1 2022

80% of the operators recorded a positive YOY change in revenue from B2B segment. Enterprise revenue grew by 11.7% as compared with total industry growth of 6.5% in H1 2022.

• The average revenue share for enterprise to total has increased from 19.6% in H1 2021 to 20.6% in H1 2022.

Exhibit 1
Percent of enterprise revenues to total revenues

Enterprise non-connectivity accounts for 51.9% of overall enterprise segment, and 10.7% of total company revenues

80% of the operators recorded a positive YOY change in revenue from this segment. Enterprise non-connectivity revenue shot up by 21.8%.

• The contribution of enterprise non-connectivity to total increased from 9.3% in H1 2021 to 10.7% in H1 2022.
• Non-connectivity portion of the overall enterprise segment increased from 47.6% in H1 2021 to 51.9% in H1 2022.

Exhibit 2
Percent of enterprise non-connectivity revenues to total revenues

SingTel makes a bold move to restructure its assets to focus on other growth areas

• Decision to sell Amobee, digital marketing unit

1. Financial figures for FY 2021 & 2022 reflected weakness in the performance of Amobee
2. It was classified as a subsidiary held for sale as at end-March 2022
3. The transaction was concluded with Tremor International for US $239 million
4. This was a strategic reset for SingTel, the telco wanted optimal allocation of resources towards new growth drivers

• Sold 70% stake in Australian tower network to AustraliaSuper, superannuation fund, for US $1.4 billion

1. Done with an objective to fund 5G rollouts and data centres
2. Singtel intends to create an ASEAN-focused regional data centre platform. It has a memorandum of understanding with Gulf Energy, Thai power and infrastructure company and is in negotiations with Telekom Indonesia to build data centres in respective countries

• In talks to shed Trustwave, cybersecurity business

1. Similar to Amobee, Trustwave also reflected a declining performance
2. In October 2021, Trustwave’s payment card industry compliance business ‘SecureTrust’ was sold for US $80 million
3. According to Bloomberg sources, SingTel is in talk with advisers for Trustwave sale to raise between US $200 million -300 million
4. The objective is to streamline the business and focus on 5G and new growth areas

Tata Comm equips for future growth with Digital and Incubation services

Tata Comm positions itself as a digital eco-system enabler. It has created platforms with a portfolio of offerings relevant for enterprises. It’s a combination of cutting-edge technologies and services foresighted on where the world will be years from now.

• Following products/services have helped Tata Comm achieve the highest % revenue incoming from enterprise services (53.8%)

Exhibit 3
Diverse product/service offerings of Tata Communications

1. Collaboration and CPaaS
   Comprises of UCaaS, Global SIP Connect, Microsoft Teams solutions, Cisco Powered Solutions, Hosted Contact Centre and the all-new suite of Cloud communications platform, powered by APIs that can be integrated into business solutions

2. Cloud, Hosting, Security and SD-WAN
   Portfolio offers access to Colocation, Dedicated Hosting, Virtualization, IZO Private Cloud and IZO Cloud Storage solutions. It has 1 million+ square feet of collocation space in 44 locations worldwide and global partnership to extend reach

3. Media and Entertainment Services
   The media eco-system includes gaming, sports, news, cable, and broadcasting services. It combines traditional video contribution services with IP-based connectivity to create an innovative cloud based global media platform.

4. Incubation
   These services are seeded to drive future growth. It comprises the global mobility platform (MOVE), Internet of Things and the in-house SASE platform (NetFoundry).

China Mobile emerging as a top-tier competitor in mobile cloud

China Mobile is amongst the best player in the enterprise segment

• Largest enterprise business in terms of revenue
• Largest enterprise non-connectivity business in terms of revenue
• Added the highest revenue from H1 2021 to H1 2022 in both the above categories

The huge success in the enterprise segment is attributed to the cloud business and 5G industry use cases. We discussed industry-leading projects enabled by 5G in our previous report on the enterprise business update. Here is how it is working to be a top player in the cloud business

1. Mobile cloud revenue amounted to US$3.5 billion in H1 2022 growing at 103.6% YOY
2. Differentiated advantages in convergence of cloud and networks, cloud and big data, cloud and intelligence, and cloud and edge computing
3. Over 3,500 significant cloud services contracts signed by the end of June 2022, bringing in over US $1.95 billion in revenue
4. China Mobile executed 1,110+ cloud migration projects and also completed several model cases for industries like public administration, education, and healthcare

Performance summary for H1 2022

Exhibit 4
Key performance metrics for enterprise segment of Asia Pacific telcos

Read here how Asia Pacific telcos have performed in the non-connectivity segment in H1 2022