TAIPEI: Far EasTone Telecommunications Co Ltd expects revenue from enterprise customers to grow at a compound annual growth rate of about 20 percent over the next three years, benefiting from rising demand for corporate social networks and smart city solutions, a company executive said yesterday.
The nation’s third-largest telecom operator said the popularity of mobile devices and the bring-your-own-device trend would stimulate demand for digital channels for corporate collaboration and communication.
“To boost revenue, Far EasTone closely monitors global consumer and industrial trends to provide products and services that cater to market demand,” said Mike Lee, vice president of Far EasTone’s enterprise and carrier business unit.
The global enterprise social network market is expected to grow to US$8.1 billion in 2019, from US$4.7 billion last year, Far EasTone said, citing a survey by market research and consulting firm MarketsandMarkets.
In Taiwan, Far EasTone has helped more than 50 local companies and government agencies adopt a customized social network application — Enterprise Mobility Messaging Assistant (EMMA) — for internal communications, it said.
EMMA, developed by the state-funded Industrial Technology Research Institute, is a messaging application, similar to South Korean app Line.
Far EasTone said its customers include Taoyuan Airport Corp and foreign recruitment agency Kanglin Global Group .
Convenience chain operator Taiwan FamilyMart Co is also considering adopting EMMA, Far EasTone said.
Enterprise clients contributed NT$10 billion (US$325.2 million) to Far EasTone’s revenue last year, accounting for 10.62 percent of its total revenue of NT$94.18 billion.
The figure is expected to expand 20 percent to NT$12 billion this year, Lee said. He expects the growth momentum to carry into the next three years with annual growth of 15 to 20 percent.
Like global telecoms operators, Far EasTone is expanding its enterprise business scope to smart city solutions to better utilize its high-speed 4G network.
The company said it has secured a NT$1 billion project from the Tainan City Government to provide more than 10 smart applications.
Far EasTone will help build a smart transportation system in Tainan to provide real-time information about traffic congestion and alternative routes. The company will also provide Internet connection on city buses, allowing riders to retrieve sightseeing information and free coupons via mobile devices.
The smart transportation system, which is scheduled to begin in the second half of the year, is expected to attract 500,000 users within three years of operation, it said.
