The report includes predictions, looking out into the next decade, developments such as the deployment of 5G cellular network, increase in digital payments in India and the usage of Internet of Things
BestMediaInfo Bureau | Mumbai | February 15, 2017
Deloitte India’s recent technology, media and telecommunications (TMT) India predictions states that television advertising expenditure in India is expected to grow at 11.2 per cent to reach Rs 543.44 billion in 2017. The report also predicts that over-the-top (OTT) players will be able to launch, monetise and manage direct-to-consumer content offerings.
The report includes predictions, looking out into the next decade. Developments, such as the deployment of 5G cellular network, increase in digital payments in India and the usage of Internet of Things (IoT) are among the predictions.
A Deloitte spokesperson said, “With advances in reliability, accuracy and technology of advance tech measures such as biometric authentication and digitisation will gain popularity in various business applications. The emergence of new tech trends will help transform digital economy in 2017 and will help operators in identifying new revenue generating opportunities, enhance customer experience, and improve operational efficiencies.”
Here are India-specific predictions in the report:
Internet of Things (IoT); the next big thing for operators: IoT units in India are expected to see a growth of 31 times to reach 1.9 billion units by 2020, from its current base of 0.06 billion. Companies are creating training programmes that will help transform the existing IT workforce. Currently, the Indian IoT ecosystem has a diverse set of 120 players, including hardware vendors, application vendors, network operators and system integrators; 60-65 per cent of these players being start-ups.
Digital aces; king cash: Mobile and digital payments will finally overtake physical card payments as the predominant non-cash payment mode. India boasts of over 770 million cards as of November 2016, with credit cards accounting for less than 5 per cent of the total volume. With close to 200 million mobile wallets reported, both adoption and usage statistics are increasing due to not just heavy discounts but also the increasing comfort and convenience being realised by customers. Demonetisation has fast-tracked the mobile wallet adoption exponentially.
OTT still a lot in it for Media and Entertainment (M&E): OTT platforms would further gain popularity as it continues to help M&E companies launch, monetise, and manage direct-to-consumer (DTC) content offerings. OTT delivers audio and video through Internet. The medium can be web-based or mobile-based. The advantage of OTT is that the users don’t have to subscribe to a traditional cable or satellite pay TV services. The OTT revenue models could be subscription-based, transaction or pay per view-based and advertising-based.
TV advertising on the climb: The importance of television in an Indian household is still high. Thus, even though digital advertising is gaining popularity, television advertising will remain a very effective option and have its stronghold in the media industry.
Television advertising is likely to have double digital growth in 2017. Advertising expenditure will continue to grow, leaving behind the temporary set-back that it encountered on account of demonetisation. Advertising expenditure in India is expected to grow at 11.2 per cent to reach Rs 543.44 billion in 2017. The Indian TV ad market is expected to grow 74 per cent between 2011 and 2017.
Communications Server Provider (CSP) 2.0 operator growth through digital transformation: Operators will focus on exploiting their existing assets and strengths in new ways by moving from one-sided to two-sided business models – CSP 2.0. The new CSP 2.0 approach will help operators in identifying new revenue generating opportunities, enhance customer experience and improve operational efficiencies.
The report states six global predictions with India perspectives, below are a few of them:
Prints charming – biometric security reaches the billions: The usage of biometric authentication in India will rise dramatically in 2017. Deloitte expects a large number of integrated smartphones and tablets with STQC (standardisation testing and quality certification directorate) certified biometric sensors to be launched in 2017, which is likely to disrupt the Aadhaar authentication market with an affordable price range. Government, banking and telecom are likely to be the key verticals that will drive adoption of biometric technology in 2017.
5G: a revolution in evolution, even in 2017: A significant tangible step towards the launch of 5G, the fifth generation of cellular networks, will take place in 2017. The technology industry may witness an earlier arrival of 5G in India unlike 2G, 3G and 4G, which were introduced much later than their global launches.
Another encouraging news for 5G in India is the clear evidence of urgency, and how India is keen not to miss the opportunity. India’s eagerness to contribute to 5G standards is evident, and to this effect, many renowned academic institutions and host of start-ups have filed 100 patents simultaneously in the US and India, 10 of which have already been granted. All these patents are expected to become part of the global 5G standards.
Have we reached peak tablet? Compared to the western markets, India is a relatively small market for tablet computers with less than four million units sold in 2016. The price-sensitive Indian market is dominated by low-cost devices, a majority of which are sold under $150 price tag and the low cost device manufacturer’s address close to 80 per cent of the overall market. Compared to 2015, the market is expected to marginally decline in 2016.
Among other global predictions include DDoS (Distributed Denial-of-Service) attacks enter the terabit era; Safety first: the road to self-driving starts with a stop; IT-as-a-Service: the half trillion dollar ‘niche’
No comments yet.