There are few other sectors where the rate of innovation is so rapid and the ability to access and harness this information so expeditious that a time frame of one year seems like centuries. The ICT (in this case the telecommunications) sector, is one such area. There is no evidence to show that this rate of innovation is slowing down in any way and 2017 looks to be bringing in some fascinating new developments as well as the tools to improve on existing technologies. Below are some of the trends I see coming to the fore in 2017:
1. Approval of the National Integrated ICT Policy White Paper
Certainly debate and discussion around this will be a hot topic. While the paper contains some good views on issues such as universal access and reducing the cost of communications and enhanced customer choice, it certainly has some contentious plans around the future management and control of the scarce spectrum resources. While some new entrants might support the proposed wireless open access network, the incumbent operators who have spent millions building their own networks would certainly push against this.
2. Fibre connectivity land grab
With more options coming to the market bringing larger bundle offers and lower cost options, operator deployment models and margins will certainly come under pressure, however this will only serve to benefit the consumer.
3. LTE (Long-Term Evolution)
I believe that the role of LTE as last mile access technology will continue to become more popular due to its wider national availability off the major mobile networks, it provides a rapid and stable connectivity mechanism.
4. Price decreases in the voice space
Also, with the interconnect rate decrease cycle now over, the pressure on continual price decreases in the voice space, with the continued increase in equipment and service costs, could be over. "We are already seeing the cost of voice calls increasing in both the mobile and fixed line space from various operators. Those alternative operators who have not secured sufficient or substantial traffic volume will feel a strong business model squeeze.
5. Internet of things
Although the Internet of things (IOT) will be a continuous trend for years to come, not just in 2017, I foresee it will have a significant impact regardless. The IOT is most certainly coming more to the fore, with low connectivity costs we will see more "things" connected to the Internet to allow remote management or monitoring. More connections mean more data usage and more over-the-top offerings becoming available. This fundamentally will grow the cloud and cloud app offering space in the coming years." Good news for consumers and businesses.
6. Consolidation and bundling
Consolidation and bundling is a popular trend that is happening globally. Last month for example, AT&T announced that it is buying Time Warner, looking to secure content to deliver over its connectivity. If you ask me, this trend is equally as important in South Africa and is already being harnessed. An example is how ShowMax who are discounting their offerings to DSTV subscribers.
How will these trends impact business in South Africa and how can businesses better prepare for these?
I believe that more competition is positive and will lead to better or wider offerings at better or bundled prices. Businesses will get more, be it in bits, seconds or service for their spend. Their overall ICT spend may increase but the added value they get will exceed the price change.
I advise SA businesses that they need to understand the changing environment and apply the applicable changes to their own business models. This will allow them to reap the benefits of the new technologies. The best way to ensure they do not miss out on this is to collaborate with the right ICT partner who can guide them through this complex field.
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