IT & Telecom Trends in 2007

I’ve been asked to give my thoughts oneconomies of scale kick in and more networks
what trends are likely to emerge during 2007 inother than Sprint Nextel in the USA do mass
the Information and Communications Technologyroll-outs. It will continue to disappoint those who
market. As usual, this will be a mix of “duh,believed all the hype w.r.t. 70Mbps @ 70 miles @
of course, what do you think!” type stuff70mph. Some Meshed WiFi networks will appear
and some “what are you smoking”here in SA, whether legal or not, and we’ll
ideas that may well be way off the mark!continue to see a LAN technology play in open
Here goes:spaces it was never intended for. Unlicensed
Obviously the desktop hardware technologyMobile Access, with VoWiFi phones following along
“refresh” will get going as IT budgetsbehind, causing Mobile Networks to get edgy.
are approved and laptop and desktops usingSpectrum is being fiercely fought over. It is a
Intel’s new super fast core 2 duoscarce resource and it is unlikely that anyone
chip’s start hitting corporate desks inother than a few established players will get
earnest; followed closely by the early adopters oflicences. There will be many frustrated wannabes.
Microsoft’s much awaited new operatingMunicipal networks are coming to the fore, with
system ‘Vista’. (The more cautiousthe Cape Town tender awarded, but challenged,
of us will wait for Service Patch 1 or even 2 toeThekweni ready to roll but caught up with
appear!)legalities, and City of Joburg now out on tender.
On the bandwidth front - Broadband, now farThey are unlikely to have any real impact this
from broad, will continue to drop in price, but Iyear. They do not really have much of a
doubt as much as we have seen in the last 18sustainable advantage in the long run, as they will
months. MTN have created a new benchmarkhave to allow others access to infrastructure and
with their new offering at around R0.20/MB. Itwill find that building a telco is not trivial.
would appear to be a limited duration half-priceThe Mobile networks will announce HSUPA with
special, but shows what can be done!great fanfare. Mobile broadband will then be about
Sentech announced they’re providing moreas broad as it gets for a while, but as up- and
bang for buck; lets hope they get their servicedown-load speeds will be around 5Mbps, it will
offering right this time. Vodacom then droppedmake quadplay (or fourplay?) possible –
their price (by 61% according to their ads) aftermobile/voice/internet/video.
being almost double everyone else’s price.Mobile interconnect prices are due to come down
iBurst also dropped their pricing, but remain moreby 20 to 25% shortly. This should allow Telkom
expensive than Sentech for equivalent packages.to drop the price of calls to mobile phones –
The unlicensed players like Amobia and Uninet arewhether they will pass on the full benefit or not
still an order of magnitude cheaper butwill have to be seen. Mobile packages are unlikely
don’t have the coverage advantage. It is allto change as a result though. Least Cost Routing
a bit confusing for the man in the street, butwill become more and more marginal and the shift
ultimately these changes will make getting onlineto Communication Service Providers using VoIP
and staying there permanently, more affordable.will be become more obvious.
Offerings should start to differentiate on qualityAsterisk, the open source “IPPBX”
(reliability of throughput) and you should be able towill continue to make some serious inroads into
get fixed IP addresses – currently notthe PBX market, with damage being done at a
available to ADSL users. This will facilitate hooking“higher level” in the market than
up remote offices for voice and data over IP.originally proposed – medium to large
More telco’s will announce moves tocorporates instead of SME’s. Watch the call
converge their voice and data networks onto IPcentres here – they’re the weather
based New Generation Networks like Britishvane of change.
Telecom’s 21st Century Network project.Hosted IPPBX’s will start emerging as
This will make networks more intelligent andbroadband improves and investors in some of the
flexible, but will unfortunately not impact onearly VoIP entrants who committed large capex
customers for some time to come.in these sorts of solutions seek to get ROI
Video on Demand is growing overseas (wheremoving.
real broadband exists) – people areSocial Networking using web based applications like
prepared to pay a premium over the likes of MrMySpace, YouTube, Flickr, blogs, Second Life etc
Video et al to choose their viewing for thewill become more widely known and used as
evening from their armchair. Don’t holdpeople get used to being online 24*7.
your breath here – we’re too spreadWe’re seeing South African flavours of
out geographically to make it profitable just yet.these appearing.
And Telkom still dominates the local loop.DSL and SSL VPN’s will become more
IPTV is being touted by vendors as the next bigpopular as DSL prices drop and quality improves
thing. Again, dependent on broadband, andand mobile broadband grows. Business will seek
ownership of content will be key! It will not behelp to set up and manage increasingly complex
over the Internet, but over managed IPnetworks of devices.
networks.As broadband improves in throughput, price and
Music and video downloads, both legal and illegal,reliability, ASP services will become more popular,
continue to grow. More cell phones with betterwith companies seriously considering (but possibly
mp3 players will eventually make people wondernot committing to just yet) such things as Getting
why they have a CD player, but probably not thisThings Done, Gmail and Office packages from the
year! Apple’s iPhone will develop a cultlikes of Google rather than Microsoft (from one
following but will hardly make a dent inevil empire to another!?).
Nokia’s global market dominance.VoIP [ will start emerging as more than just a
Instant Messaging (IM) will continue to grow. Localcost saving exercise with some of the first real
mobile phone based instant messaging service,value adds starting to come through, with
MXIT (Think MSN messenger on your phone) willintegration into calendars, address books,
find ways of “growing up” andCRM’s and PBX’s.
becoming more respectable. IM will start makingThere will be a lot of consolidation in the next few
deeper inroads into corporate culture with ITyears, with bigger players buying smaller, more
managers needing to develop policies on IM usage.niche players to fulfill the need to have broader
WiMAX equipment will drop in price as thevoice and data offering.