Deloitte analyses top trends in technology for 2008

Deloitte has released its seventh Annual Predictions 2008 report, a series of
three reports that examine emerging developments and predicts how they will
shape the technology, media and the telecom sector. The Deloitte predictions
report explores a number of emerging TMT trends that will impact the markets in
2008.

According to a Deloitte statement, this series by Deloitte has been designed
to provide a diverse selection of views and thoughts that challenge, inform and
engage industry leaders and executives. Each report recommends ways to best take
advantage of the emerging trends in the sector. The 2008 series is based upon an
extensive research process involving discussions with industry analysts,
financial institutions, senior executives from the TMT industry, and feedback
from senior alumni along from inputs from Deloitte's strong global TMT practice.

Key trends

Technology predictions

In 2008, there may be an increasing clamor, from regulators, users and
online traders for the Internet to provide authenticated identity every time
people undertake any transaction via web. A move to process online
authentication could ultimately be good for both business and users.

It stated that in 2008, people would spend more on virus protection, online
backup and insurance to enhance the lifetime of their computer. This trend could
extend beyond the PC to other devices such as MP3 players, mobile phones, DVRs,
external hard drives and others, as all these forms hold valuable data.

According to the study, the technology industries are demonstrating increased
interest and investment in developing products to reach large, low-income
populations in emerging economies such as India, China, and Latin America. In a
phenomenon called innovation blowback, we can also expect to see innovative
products, services, or management practices be introduced back into western
economies in 2008.

Media predictions

Online advertising is expected to generate $41.6 billion in revenue in 2008
with major events like the World Cup and Beijing Olympic Games adding an impetus
to online ad spending. However, despite the positive outlook, it has been
noticed that growing antipathy to online advertisements and behavioral patterns
is presenting obstacles to online advertising. The sector could fight back by
methods such as testing various types of online advertisements with consumers,
experimenting with radically new forms and formats, and considering online
advertising as an element of the media mix within a campaign rather than as a
solitary platform against traditional media.

Long live traditional television, thanks to Internet television: The global
traditional television sector, despite the occasional shock, should remain in
good health throughout the year, and there is a good chance that Internet
television will contribute to traditional television's fortunes.

Overcoming online privacy may not mean the end of counterfeit content: Steady
growth in the number of broadband connections around the world has allowed
online piracy to grow and the increasing speed of broadband connections has made
movie, television and software piracy feasible. The Chinese authorities attach
great importance in cracking down online piracy by closing down illegal
websites, imposing fines on violators and controlling virtue communities of the
Internet. But the rapid growth of the Internet and wider access will continue to
pose challenges to anti-piracy efforts.

Telecom predictions

Prey becomes predator: While the credit crunch may dampen the overall pace
of mergers and acquisitions activity in 2008, the growth via acquisitions is
likely to remain strong in the telecommunications sector. In China, foreign
ownership of joint-venture companies that provide basic domestic and
international telecom services in China was officially raised in December 2007
from 35 to 49 percent. However while established, developed world mobile
operators may be looking for acquisitions, in 2008, the tables may be turned.
The leading operators in emerging markets may transform themselves from prey to
predator.

Capitalise on the $10 mobile phone: Lower priced mobile handsets are popular
gifts in China but the major opportunity for the $10 mobile phone may be the
market for machines, rather than for people. Lower priced handsets are likely to
increase overall mobile penetration rates but as global mobile ownership
approaches 50 percent. Embedding mobile phone functionality in machines from
ATMs to vending machines could be a potential market for the mobile industry.

Giving mobile GPS direction: Prices for GPS functionality have fallen to such
an extent that a growing number of mobile phones now incorporate GPS navigation.
The number of devices that incorporate the technology is expected to grow
rapidly in 2008. The mobile industry may overlook several critical differences
between how satellite navigation is used in vehicles and how it might be used by
people on foot. Thus, while a growing number of GPS-enabled mobile phones may be
shipped and sold in 2008, aside from the novelty, their use may be infrequent in
the near future.

Exploiting new media's growing need to communicate: In 2008, digital
communications will become more varied, vibrant and vital to the way we live
than ever before. New media companies, such as social networks, synthetic worlds
and blogs, are likely to offer the services through which newer forms of
communication are initiated. However, the telecommunications sector should
consider how to earn a greater share of revenues from communications in new
media websites.

Green TMT predictions

The challenges and opportunities of water scarcity: In 2008, it is estimated
that more than one billion people will lack access to clean water and more than
double that number will lack access to sanitation. China's State Council
indicated in December 2007 that even if steps to improve conservation are
undertaken, the country's thirst for water is expected to approach the limit of
the available resources by 2030. The technology sector can play a major role in
addressing this by looking at how their products and solutions can add to
existing supply, improve management of existing supply and reduce current usage.

The living room moves closer to being 'public enemy number one': The
proliferation of technology in the living room is creating its own distinctive
carbon footprint and forecasts estimate that consumer electronics' share of
household electricity usage could reach 50 percent by 2020. The media and
consumer electronics industries should consider how developing energy efficient
products to reduce unnecessary power consumption could reduce the carbon
footprint of the living room.

Let there be Light Emitting Diodes: In 2008, the LED should become
commercially viable and its challenges with regard to intensity and color should
be resolved. While the upfront cost of an LED is high, its long life makes the
total cost of ownership more than competitive.

From zero to green hero: The renaissance of nanotechnology: Nanotechnology
can be used to generate clean power, reduce existing power consumption, provide
drinkable water, clean contaminated land, reduce harmful emissions and enable
long-life portable power. According to the OECD, China already has nearly as
many published works in nanotechnology as the US. The investment and the
progress of nanotechnology is expected to provide solutions for environmental
and energy challenges facing the country.