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Industry Research Featured Article

January 25, 2008

Deloitte Releases Telecom Predictions for 2008


Mobile technology solutions is a tricky industry and every company is vying for not only the consumer dollar, but also the consumer’s attention in an ever-increasingly saturated world.

While companies are well aware of challenges that prevent their message from reaching their intended audiences, new predictions reveal disruptive forces that will impede efforts in the near future. 

Deloitte’s (News - Alert) Technology, Media & Telecommunications (TMT) industry group predicts that in 2008, at least one technology innovation developed in an emerging market will become a disruptive force in Western economies.

"Western companies understand the importance of innovating in emerging markets," said John Hagel, co-chairman of the Deloitte Center for Edge Innovation, in a Friday statement.
"They should not miss the much larger opportunity for innovation blowback to use emerging markets as seedbeds for innovation that can be used to attack more entrenched positions in more developed countries."

At the same time, the transformation of mobile networks from primarily outdoor to increasingly indoor usage is expected to create new opportunities for network operators. These operators must move rapidly as the process of fixed displacement take hold.

In the world of advertising, the growing online advertising market will contend with increasing consumer antipathy to online ads and concerns about the tracking of online behavior.

Predictions 2008 is comprised of three reports that examine emerging developments and how they will shape the TMT market. Written by the Deloitte TMT industry group with input from leading industry analysts and executives, each report includes recommendations on how best to take advantage of these trends.

Deloitte also offers the 2008 Industry Outlook report for Technology, Media and Telecommunications that looks directly at trends impacting the U.S. market in 2008.
Key trends identified in these reports include:

-- Innovation Blowback: Technology industries are paying attention to and investing in the development of products targeted at low-income populations in emerging economies. Aptly named innovation blowback, some of these products, services or management practices will be introduced back into Western economies to target the entrenched positions of incumbents in more developed countries.
 
-- Green Technology Issues: from LED lights, nanotechnology and water conservation technology predictions, technology will play an important roll in green issues in 2008. The importance of this focus in the U.S. will lead corporations to create a new certification body for energy-conservation claims.

-- Privacy & Protection of Personally Identifiable Information: the fight for online privacy will increase, along with continued data security breaches involving personally
identifiable information security.

-- Getting Mobile Indoors: As network traffic continues to move indoors, mobile operators must be able to adapt to this changing landscape. Network sharing will be a strategic decision made by many operators in 2008.
 
-- Accessibility as a Business Driver: demographics are creating new market opportunities for communications services and products. Market segmentation will play a key role in creating new product target markets.

-- From Credit Crunch to Communications Crisis: the telecommunications sector must consider the importance of the current credit crunch and how it may provoke a crisis in this sector.

-- Online Advertising: while online advertising spend has increased, there is growing antipathy by consumers to the online advertisement and the tracking of online behavior.

-- Long Live Traditional Television, Thanks to Internet Television: Internet television is expected to increasingly broaden the user experience of traditional 'TV' as opposed to providing a viewing experience that competes with it.

-- The Living Room Moves Closer to Being Public Enemy Number One: More elaborate TV/entertainment set-up in living rooms translates to higher energy consumption nationwide. The media and electronics industries will need to consider how the carbon footprint of the living room can be reduced without looking to antiquated technology.

Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 
INTERNET TELEPHONY Conference & EXPO East 2008 (ITEXPO (News - Alert)) is going on now in sunny Miami, Florida! For the latest show news, please visit Rich Tehrani’s blog.
 
 





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