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Smartphones To Spur Revenues Of UAE-Based Telecom Firms
Published Nov 4, 2009
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Value added services (VAS) from smartphones is the next level of revenue growth for UAE-based telecom operators in 2010 as penetration rates globally are expected to touch 27 per cent in 2010.
Paul Lee, Director (knowledge and research) at professional services firm Deloitte, told Emirates Business: "In 2009, growth rates of smartphones went beyond 20 per cent globally, which was expected to be between 15 and 20 per cent. The smartphone will evolve further and grow strongly next year.
"The rationale for this segment will change compared to 2009 when it was about getting people into data plans. Search will also become an integral part of the smartphone and also generating revenue."
According to Deloitte's Predictions 2010, the global technology, media and telecommunications market is poised for an interesting year ahead with a diverse spread of development that is likely to have varying impacts on market players.
Chris Williams, Partner - Telecom, Deloitte, said: "The telecommunications sector will most likely face challenges based on the state of the global economy. Deloitte predicts the financial pressures felt by the operators and their customers will actually accelerate the industry transformation that has been under way over the last several years."
Some of the key trends in the telecommunications sector include further consolidation of Mena-based incumbents and the reorientation of telecom-related activities to create telecom "powerhouses" that offer a wider range of mobile applications/offerings.
In the technology sector, trends indicate the acquisition of niche technology companies by established technology firms and further commercialisation of green-IT technology.
"Focus will be on content sales for telecom operators. If you can create content then it is easy to capitalise and monetise and then cost of investment also gets low. Broadband and micro payments will also gain importance in 2010," said Lee.
Although broadband is expected to grow, prices are still not affordable in the Middle East. Operators are making investments in fibre networks, which is an expensive proposition, he said.
"Investment in fibre per line can go up to $1000 and the cost cannot be passed onto the consumer. Therefore operators bring in broadband, TV and telephony together. By doing this the cost is shared between the services," said Lee.
Mobile phones globally have touched four billion in sales figures for 2009. Fixed lines connections globally touched 2.6 billion this year.
On the technology front, Lee said he saw a lot of potential in thin client computing, even in this region.
Posted by
VMD - [Virtual Marketing Department]
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