HIGH PRIORITY MARKET - TELECOM
cars and “ smart ” homes . We also expect manufacturing , |
For telecom companies looking to expand , we expect to |
transportation , utilities , retail , and hospitality to be big |
see a continued increase in alliances and partnerships |
contributors to this rapidly emerging and complex |
which can help bring a variety of requisite capabilities and |
ecosystem particularly in the enterprise space . |
speed time-to-market . For example , integration with key |
Telecommunications companies will also find new |
players in industries such as retail , automotive , or |
opportunities for growth in the public sector , as “ smart |
healthcare is a way for carriers to expand their business , |
cities ” gains more traction . Consumer demand for digital |
and do so in a way that is timely and less risky . Companies |
technologies that make it easier to access and pay for |
can avoid having to invest significant resources and time to |
public services using mobile devices , such as parking and |
develop these core capabilities themselves , each |
transportation , will help to drive these initiatives , as will |
leveraging their natural strengths . There also remains |
municipal demand to operate the city more effectively and |
opportunity for cross-sector M & A ( e . g . telecom + media , |
efficiently through applications such as connected city |
telecom + tech ), as well as M & A in other vertical industries |
lighting , asset monitoring and tracking , and video security . |
as a way to pursue these complex solutions . |
What should businesses be mindful of as they plan for growth ?
Carriers need to continue to focus on providing data and |
Furthermore , carriers will need to consider other network |
voice services that are high quality , reliable , and |
strategies to better manage coverage , quality , and |
affordable . The challenge in 2016 will be doing this in a |
capacity . Further densification of cell sites including small |
market where there is increasing usage , declining rates , |
cells represent a viable strategy for many carriers , as do |
and scarce spectrum . With billions of dollars at stake , |
other network efficiency trends such as Software Defined |
2016 spectrum auctions will remain a top-of-mind |
Networking ( SDN ) and Network Function Virtualization |
concern . Data usage has been growing dramatically , |
( NFV ). Operators are essentially moving away from |
particularly due to streaming services , and is expected to |
proprietary , hardware-based network equipment to |
continue that path in the year ahead . Wi-Fi usage will |
software-based network functions which should allow |
continue to be key . Voice over LTE ( VoLTE ) and Voice over |
them to manage their networks more efficiently and |
Wi-Fi ( VoWiFi ) services will also be a key focus . |
effectively . |
What markets do you see emerging in the sector ?
Wearables and smartphones are two related areas to continue to watch . Findings from our latest GMCS help to underscore how wearables are beginning to gain real traction in the marketplace — with ownership rates doubling over the prior year , but still at relatively small levels ( 10 percent and under ) indicating significant potential for growth .
Massive data consumption will continue to grow with the expansion of IoT and more streaming of content — especially video . We also expect to see sponsored data services further emerge as providers look for ways to increase revenue in a market where consumers are less likely to invest in long-term ownership of content .
Location-based services , such as mobile advertising , also represent significant potential for growth . The overall trend : development of more services and capabilities that further leverage mobile devices , analytics and the mobile ecosystem to make everything more convenient and efficient for consumers , all while balancing and protecting privacy .
A big upcoming wave of change for the telecommunications sector will be the emergence of fifth generation mobile networks ( 5G ). While the technology is still several years away from achieving mass market coverage , what it promises — more speed , greater efficiency , and less latency — will be essential to supporting connected things in the future , especially self-driving cars . 2016 is likely see heavy momentum toward implementation of the next generation of wireless network technologies such as 5G which should move from the lab to field trials , despite mass-market rollout still being several years away .
The smartphone market will continue to be robust with continued flexibility for regular device upgrades . With more robust upgrade options , we would also expect the secondhand smartphone market to continue to grow . In 2016 consumers globally are estimated to sell outright or trade-in 120 million used smartphones — an increase from the 80 million smartphones estimated in 2015 — generating more than $ 17 billion for their owners . This is particularly driven by the ease of trade-ins , more transparent trade-in value , as well as the desire for owning a latest model device . The biggest potential implications are for handset vendors , who are likely to become more and more aware of the residual value of their devices as well as carriers who can get more smartphones into the hands of even more budget conscious consumers .
Lastly , we have been watching momentum steadily increasing for mPayments . The findings of Deloitte ’ s most recent GMCS show that there was a nearly fourfold increase in use of mPayments technology from 2014 to 2015 . More handsets are being equipped with Near Field Communication ( NFC ) chips , retailers are upgrading payment systems in response to regulatory pressures and consumer demand and businesses of all types , from gas stations to coffee shops , are implementing point-of-sale technology that allows customers to pay using mobile devices . Given these trends , we anticipate that mPayments will finally become a payment method of choice for many consumers in 2016 . Needless to say – there will be a vast array of changes that will make 2016 an exciting year for the sector .
Spotlight on Indian Electronics 2016 | 142