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Introduction The telecommunications industry have contributed positively to the Malaysian economy, as reported by the Department of Statistics of Malaysia. The expansion of the industry is vital to ensure prosperity of areas i.e. Internet of Things and Digital Financial Services. Despite the growing number of licensees, the cancellation rate of the Individual licences have been rising from 2007 till 2017. Financial difficulties appear to be the source of these firms- licence cancellation. Malaysia may not be able to achieve its 2020 national agenda to become full national digital economy if the problem continues to exist. Aim of the study The aim of the research is to investigate the performance of the NFP and NSP Individual licensees- financial status to assess the extent of the financial performance-s influence on the cancellation, non – renewal and surrender statuses of these licences. Method Our sample consists of the financial information of the six major operators in the industry and 2 operators who have exited the industry. Profitability, liquidity and the solvency ratios were computed for 5 years. Regression analysis was employed to test the impact of financial performance for selected licensees. Results Results obtained shows that there is no relationship between the financial performances (profitability ratios) with the liquidity ratios although a strong relationship is observed between the financial performance and the solvency ratios. The research found that the financial performance of the firms impacts the cancellation, surrender and non-renewal of the firms- licences. The firms also contributes significantly to the GDP of this particular industry. Conclusion The overall GDP of the country is influenced by the decrease of percentage share by the telecommunications industry contributed by the exit of the firms- holding the NFP and NSP Individual licences. Results of this study have significant implications for the Malaysian government to achieve the proliferation of Internet of Things for the Sustainable Smart City initiative.