TMT buyouts drive growth

Dubai: The global technology, media and telecommunications (TMT) market is poised for an interesting year ahead with a diverse spread of development that is likely to have varying effects on current market players, a seminar has established.

The assessment was made during a ‘Predictions 2010: Global Innovation for the TMT Market' seminar hosted by Dubai Media City and research firm Deloitte.

"A large part of the Middle East has in many ways has become a mature mobile telecommunication market.

"Penetration rates are high in this region and if the companies are looking for top-line growth, they should look abroad for acquisitions [or new licences] and/or expand the product offerings for their current market," said Robin Butteriss, managing director of financial advisory services at Deloitte in Qatar.

He said operators in markets less developed than the Middle East were very attractive assets as the still expected growth in penetration and average revenue per user (ARPU).

Owners of these assets with stressed portfolios could be forced to sell these liquid assets. This will open acquisitions that probably would not have been there if the downturn had not occurred, at potentially attractive prices.

According to Saba Sindaha, Middle East head of TMT, Deloitte, there would be increased revenues to telecom operators from value-added services, particularly in the area of internet and data services. These would be attributable to intense competition, VOIP and regulation.

The future

When asked whether smartphones would replace laptops, Paul Lee, director of knowledge and research at Deloitte in the United Kingdom, told Gulf News: "Yes, but only for small pockets of users, [for example] those who have been allocated laptops, such as some field force workers, but don't really need the full functionality of a laptop.

"Other form factors, such as the expected form factor that sits in between the smart phone and the lap top, are likely to replace some lap top usage, but are more likely to be additive."

Key trends for 2010

The rapid growth in the smart phone market, which places further, deeper prominence on handset manufacturers as a source of differentiation.

Continued uncertainty over funding models for next-generation access networks— there are still no applications that rely on NGN speeds for them to function.

Pockets of congestion in the network, for example, due to growth in video usage across mobile and fixed networks and growth in the usage of mobile networks for data traffic.

A focus on operational efficiency among operators in developed markets.

3D technology will gain more importance. The global gross is expected to between $2 billion (Dh7.34 billion) and $3 billion this year. In 2010 multiple 3D standards will exist.

E-book are expected to remain as an attractive niche market.