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Smartphone market continues to grow

Telecommunications predictions for 2010

Dejan Ljuština

Dejan Ljuština, senior manager in Deloitte, “Most markets in the region are saturated in the mobile communications segment, and the fixed network penetration is solid when comparing to the European Union. However, the whole sector in the region is currently looking for new opportunities for further growht. ”

Smartphone will continue to thrive on the market, and it can be expected that in 2011 its sales will reach 400 million units, which will exceed all PC sales. With nearly 600 million mobile broadband connections, 2010 could see the wireless equivalent of gridlock. Markets in our region are saturated in the mobile communications segment, so the telecommunications industry finds itself searching for the further growth possibilities, according to the latest Deloitte’s report Telecommunications predictions for 2010.1  

Deloitte’s report for 2010 is marked by three specific challenges, first of them being the course of global economy. Deloitte’s predictions for 2009 confirmed the general consensus on economic turmoil that will reach throught the globe. However, the situation for 2010 is much more versatile. Although it can be agreed that most of the economies will recover, the paths of this recovery still remain uncertain. Second challenge is the dynamics of digitalization process. Conversion of analog data into digital was primarily achieved in the telecommunications industry. While technology and media industry are still trying to embrace a full digitalization, global telecommunications world remains the key driver of this process. However, finding profitable business model for this part is still a major challenge. Third issue is the fact of extremely fast adaptation of the mobile internet, which continues despite economically uncertain conditions, which brings major challenges for the entire telecommunications industry and its major players. Speaking in global terms, telecommunications markets can be roughly devided into those where the industry reached the saturization (such as on the developed Western countries) and those where the further growth still can be expected. Apart from China and India, this segmet includes some of the SEE countries, including Croatia.

“During the last decade, the telecommunications industry in our region had a steady growth rate, especially in the mobile and broadband segments. In the last few years growth rate of the mobile communications became stagnant, while traditional networks have reached negative growth rate. Most markets in the region are saturated in the mobile communications segment, and the fixed network penetration is solid when comparing to the European Union. However, the whole sector in the region is currently looking for new opportunities for further growht,” said Dejan Ljuština, senior manager in Deloitte.

Smartphone will continue to thrive on the market, and it can be expected that in 2011 its sales will reach 400 million units, which will exceed all PC sales. Leadership in mobile search will be the most important battle in 2010, however it might stay below the radar of the media due to the modest project revenues between 1 to 2 billion dollars. With nearly 600 million mobile broadband connections, 2010 could see the wireless equivalent of gridlock. Leading companies specialized in technologies that can make existing wireless networks perform better should experience growth approaching 100 percent.

In 2010, the global telecommunications sector will focus heavily on reducing CO2 emissions, with cost control being the common driver in developed and developing countries. Operators with fixed and mobile operations should consider the merits of shifting voice and data traffic between fixed and mobile networks to reduce overall energy costs, in addition to considering how metered broadband usage might discourage excessive network usage. More reliable network technology could translate into reducing emissions generated by maintenance teams. Equipment manufacturers should continue to improve network efficiency, whilst adapting innovations in power efficiency of mobile phones to network components. Device manufacturers and the mobile industry should continue to strive to reduce emissions with initiatives such as turning off chargers and a single standard for chargers.

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