The telecommunications industry in Indonesia has experienced a decline in revenue growth in recent years. This is due to a shift in the trend of digital transformation which has caused a shift in the need from legacy service to digital service. Meanwhile, revenues from digital services currently cannot replace revenue from legacy services. Internet of Things (IoT) is a solution that can be utilized by Mobile Network Operators (MNO) to boost the telecommunications business in Indonesia. Concept of IoT aims to expand the benefits of internet connectivity that is continuously connected. IoT consists of sensors, telecommunications networks, and applications that are able to share data, control remotely from a device or thing. IoT is one of the entities in the 5G era, that is also a key technology in the industrial revolution 4.0. Telkomsel is one of the cellular operators in Indonesia that faces the same problem. In research, we will discuss how Telkomsel`s strategy in implementing IoT-based business. Strategy analysis is carried out using analytical analysis strategies, namely the SWOT method, internal and external evaluation matrix and selection of alternative strategies using the QSPM method. The results of the study indicate that Telkomsel is in a position of Maintained Growth Strategy where the strategies are suitable for product development and market purchases. The chosen strategy is to develop IoT products for the industrial sector using existing technology and infrastructure starting from urban area such as IoT for manufacturing, transportation, smartmetering, then IoT services in rural areas such as in agriculture, plantations and fisheries to get great benefit from IoT economic value.
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