Deloitte: Top Trends in Telecommunications in 2012

Low cost smartphones and capped Internet consumption 

Increased popularity of smartphones has pushed for cheaper handsets, and the end of 2012 will see over half a billion low cost smartphones already in use; separately, strained networks will force providers to impose some restrictions on Internet consumption, according to Deloitte's annual Predictions for the Technology, Media & Telecommunications (TMT) sector, now at their 11th edition. 

The report presents Firm's view of the major trends over the next 12-18 months that are likely to have significant medium to long-term impact for companies in TMT and other industries. 

"Mobility and multifunctional handsets have certainly been the main drivers in telecom over the past years; introducing low cost smartphones (sold for less than 100 Dollars) is a successful strategy for both mature and emerging markets”, explains Ahmed Hassan, Managing Partner and TMT Industry Leader, Deloitte Balkans. "On one hand, it could serve as the perfect teenage 'starter' phone in developed markets, while also being the solution for emerging markets users, with limited internet access but a growing desire for communication and information services.”

With internet becoming ubiquitous as means for delivering information and data between users, fixed broadband and mobile networks are facing increased traffic and higher risks of congestion. 

"An immediate effect is that short-range wireless connections (web bypass) emerge as a third network option to transfer data,” adds Alina Mirea, Audit Director, Deloitte Romania. "Moreover, with demand growing at over 30 per cent a year and traffic at peak times, many network providers are forced to introduce bandwidth caps to alleviate congestion.”

Technology trends in 2012 - highlights 

• The 100 Dollar "smartphone” reaches its first half billion
• NFC and mobile devices: payments and more!
• Web Bypass: delivering connectivity without the Internet 
• Here come more data caps: it's the end of the (wire)line for unlimited Internet
• So many apps - so little to download

For a full copy of the report with all of the Deloitte predictions please visit www.deloitte.com/predictions

The 2012 series of Predictions has drawn on internal and external inputs from conversations with member firm clients, contributions from Deloitte member firms' 7,000 partners and managers specialising in TMT, and discussions with industry analysts as well as interviews with leading executives from around the world.