Deloitte's TMT forecast highlights the key trends shaping the future of Technology, Media and Telecommunications
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Deloitte has released its 2024 Technology, Media, and Telecommunications (TMT) global report, providing valuable insights for businesses looking to stay ahead of the curve in this rapidly changing landscape. The report highlights the ongoing digital transformation of the global economy, looking at the rise of Generative AI (Gen AI) among consumers and enterprises, subscription video on demand (SVOD) platforms facing the challenge of balancing growth with profitability and Telcos looking to reduce their carbon footprint as they move from copper to fiber, shut down 3G networks, and deploy efficient 5G networks.
Gen AI might move from a concept buzzing in enterprise circles to a reality reshaping industry. Deloitte Global surveyed the 50 largest enterprise software companies, and all of them offer or plan to offer a software product with gen AI inside. In this context, 2024 will be a ramp year, with enterprise software revenue uplift from gen AI reaching US$10 billion run rate by the end of 2024 -- from zero dollars in 2022.
Belgian businesses are set to rapidly embrace Generative AI technology, as market projections indicate a double-digit growth over the next decade, with 29% of Belgian Generative AI users already leveraging this technology for professional purposes. Belgian AI scale-ups are poised to play a pivotal role in the corporate adoption of Generative AI, by customizing globally-developed Gen AI models to meet specific local business requirements.
In 2024, Deloitte Global predict that streaming platforms will charge more for premium content, fight churn with longer subscriptions, and satisfy bargain hunters with more pricing tiers. 2024 will be an inflection point for streamers, shifting from growth to profitability. This may require streamers to fight churn and diversify revenues – or examine if they’re in the right business
.Belgium presents an interesting streaming landscape, marked by distinct market dynamics. Despite a 67% average SVOD penetration across Europe, Belgium stands at just 47%. This disparity can be attributed to a mix of supply-demand factors, including the limited size of consumer and advertising markets, the prevalence of strong broadcaster video on demand (BVOD) platforms like VTM GO, VRT Max, RTL Play, and RTBF Auvio, as well as high telco pricing limiting the consumer willingness to pay for streaming service. These elements could potentially deter some streaming services from entering the Belgian market, considering as well the profitability hurdles they face.
Telecom sectors, despite accounting for only 2% of global emissions, are actively seeking to further reduce their carbon footprint. Initiatives may include transitioning from copper wire networks to energy-efficient fiber optics, decommissioning power-intensive 3G networks, electrifying field service fleets, and employing power-saving technologies in 5G radio gear. Deloitte predicts that telcos worldwide may be able to reduce their carbon footprint by 2%, or 15 million tons of carbon dioxide equivalent (CO2e) in 2024 and do the same again in 2025.
In Belgium, Proximus will decommission 60,300 km of copper network over a 5-year period. Telenet will gradually migrate customers towards FTTH network after which HFC network may be decommissioned gradually. Every Belgian operator is also phasing-out legacy mobile networks, with 3G phase-out by 2024 or 2025 and 2G phase-out between 2027 and 2030. At the same time, Proximus will Installs 5G RAN base stations with “sleep functionality” to improve save energy and Telenet, through its partnership with Ericsson, will deploy 5G operation engine designed to optimize 5G energy efficiency. In the same vein, Orange will Update base stations to a more energy efficient Nokia Single RAN.
Deloitte's annual TMT Predictions report provides an outlook on technology, media and telecommunications trends that may disrupt and transform the business and consumer ecosystems worldwide. Visit www.deloitte.com/predictions.
Deloitte in Belgium
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