Connected TV: Accelerating OTT video development


Jacques Bajon
Director of Media & Digital Content Business Unit, IDATE DigiWorld

The development of connected TV is inextricably bound up with the widespread availability of high-speed Internet access, a shift to more and more individual viewing and the proliferation of smart devices in the home.


Together, these three elements are steadily revolutionising how viewers access their TV programmes, and providing them with an array of new functions and features. TV sets can be connected to the Internet in several ways. Using:
a smart or connected TV (direct connection, via Ethernet or Wi-Fi),
a connected set-top box,
a streaming box or stick,a connected game console,
or a smart Blu-ray player.

In 2015, almost three-quarters of the televisions being shipped are Smart TVs, even if their owners may not systematically take advantage of the Internet connection. At the same time, the market for streaming devices – whose main purpose is to play online videos – is progressing rapidly. Within this market that is still populated by a great many solutions and services, several trends are taking shape:
the way users access and employ connected TV services has become more simple, and shifted from Internet-centric to video-centric;
managing connectivity with users’ personal devices has become a key issue, with app systems playing an increasingly central role;
OTT services are moving to the TV and making real strides;

More information about main trends

Technological progress in a variety of areas is helping to bolster the market’s development, be it the growing ubiquity of broadband and superfast broadband access in the consumer market, major improvements in video optimisation and compression (HEVC), or the advent of innovative features such as casting which allows users to send video content from a personal device to the television. The main stakeholders in the connected TV ecosystem can be broken down into three categories, based on their original sector of activity: consumer electronics (CE) companies, TV market players and the Internet’s leaders.
CE industry players are working to improve their software interfaces, either through dedicated developments such as Samsung has done with Tizen, or by acquiring another company, as LG has done with WebOS. The aim is to capture the added-value in the marketplace, whether in the arena of services and/or by selling high-end devices.
Players from the TV universe are developing their OTT products, and working to bolster their position on the software side of the equation with more open and hybrid platforms. The connected TV could enable them to renew ties with consumers, and better monetise their plans. Broadcasters and pay-TV providers, especially in the United States, are therefore starting to roll out complete OTT plans which include a live component
Lastly, companies such as Google, Amazon, Facebook and Microsoft that dominate the Internet, are very knowledgeable about software, and changing consumer habits. So they are in the best position to deliver a top-notch user experience, whether in terms of smooth and intuitive interfaces, or providing recommendations based on user data. Their increasingly vertical positioning – covering everything from the content to the device – is also bolstering their potential to capture a growing portion of the video entertainment market.

In this way, many scenarios are emerging for Connected TV to 2025, and will determine which industries are likely to increase their control over this environment:


The size of the OTT video market will vary considerably under these scenarios, depending on how the environment evolves and so which industries prevail, and The popularity of the different devices will also evolve along the same lines.

Discover the perspectives,  key trends, and scenarios about the TV market for the next decade through our dedicated report and register to DigiWorld Future 2016 

DWF15 video report v3For the publication of the 16th edition of the DigiWorld Yearbook (pre-order now), IDATE is organizing a conference based on the detailed analysis of the current situations and some forecasts by IDATE experts on the major digital sectors, the discussion will deal with the great trends and challenges that will disrupt the digital markets by 2025.




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Mobile Gaming, 23 Milliards d’euros d’ici 2018 !

infog google vs apple 2018

Google versus Apple : les deux géants tirent le marché vers le haut et s’affrontent au travers de business models différents


L’économie des jeux sur les plateformes nomades est remarquablement efficace, et la concurrence qui s’exerce entre Apple et Google l’est tout autant.

L’App Store d’Apple et Google Play sont les deux principaux appstores du marché en volume d’applications disponibles et téléchargées.

On notera qu’en juillet 2014, ils comptabilisaient chacun plus de 1 million d’applications, loin devant Windows Phone Store, Amazon Appstore et Blackberry World. Aujourd’hui, ces deux appstores rassemblent à eux seuls  quasiment 80% des applications disponibles.

Les chiffres clés du marché mobile mondial à 2018

•    Le nombre de jeux mobiles dépasse de loin le nombre de jeux disponibles sur les autres plateformes de jeux,  offrant de nombreuses perspectives aux grands acteurs.

•    Le marché du jeu mobile s’élève à 12.8 milliards EUR en 2014. 72.6% de la valeur est générée par le jeu sur smartphone et atteindra vraisemblablement les 15 Milliards d’euros d’ici 2018

global mobile market generated by smartphone and tabletsDes modèles économiques innovants : Le free2play séduit de plus en plus de joueurs

Sur téléphone mobile, les 20 plus gros succès de l’année 2014 aux États-Unis sont des Free2Play. Ils étaient 18 en 2013.

•    Sur iTunes Store d’Apple, les jeux payants ne représentent plus que 8% du catalogue, contre 47% en 2012.

•    Le modèle Free2Play cohabite avec le modèle Pay-per-Download, mais le premier est bien plus répandu. Même les acteurs « historiques » du jeu vidéo investis dans le jeu nomade ou les « pure players » du jeu nomade ont passé le cap du Freemium, EA et Gameloft en tête.

Ce modèle a vocation à d’abord séduire le joueur avant de le faire payer. Une fois conquis, ce dernier paiera des objets virtuels en fonction de son attraction au jeu et de ses objectifs d’évolution à l’intérieur du jeu.

Pour retrouver toutes les informations concernant l’étude Mobile Gaming et les études associées, cliquez-ici

Plus d’informations sur l’expertises et les événements de l’IDATE sur :

www.idate.org          www.digiworldsummit.com          www.digiworldweek.com          www.gamesummit.pro


In 2015, the key words of the Mobile World Congress were 5G, IoT, virtualization and LTE-U : PART 1

MWC infog

As for each edition, IDATE has been Analyst partner of the Mobile World Congress. A fantastic opportunity for our analysts and experts to interview many professionals coming from their Mobile planet to Barcelona for this intense and tremendous week.

5G Concept

Even though the concept of 5G is still very much under discussion (videos from KT, Huawei presented during conferences), NGMN (next generation mobile networks) Alliance published its 5G white paper which can be seen as the mobile operators “wish list” for 5G. Nonetheless, 5G is scheduled for 2020. Early trials should arrive in 2018, with projects scheduled for the Winter Olympic games in South Korea (4G became real in 2010’s, 3G in 2000’s). Key advantages of 5G over 4G would be a much lower latency (1ms compared to 40 ms in 4G and 100 ms with 3G), the capacity to connect billions of devices, faster response that will boost services like augmented reality, self driving cars and online gaming. Huawei mentioned that 5G should reach 10 Gbps (7 minutes to download a movie with 4G, 6 s with 5G).

5G should better take into account specific requests of vertical markets (healthcare, automotive, energy, government, city management, manufacturing and public transportation) and better manage the Internet of Things.

Equipment suppliers showed first demos of 5G air interface using millimetric bands (70 GHz - Nokia) and 15 GHz (Ericsson). New air interface techniques were proposed by Huawei with the non-orthogonal access technology based on Sparse Code Multiple Access (SCMA), and Filtered-Orthogonal Frequency Division Multiplexing (F-OFDM).

With tvisuel principal idate MWC v2he 5GPPP (Public Private Partnership), Europe is trying to accelerate developments of 5G with fundings of €700 million for R&D. It is expected that the industry will invest five times this amount. According to the 5GPPP, 5G should be based upon a HetNet (heterogeneous network) supporting various radio access technologies and frequency bands ranging from sub-1 GHz bands to 100 GHz. Various traffic profiles will have to be supported:


•    Low speed-low energy for IoT sensors
•    High speeds for video services
•    Very low latency profile for mission critical services such as PPDR (Public Protection and Disaster Relief) and for transportation issues

Google will soon become a MVNO

Google confirmed during the MWC that the group is negotiating MVNO agreements with the US mobile operators. Light details on Google plans so far. Further information scheduled for months to come. Nova is not expected to compete directly against US MNOs. In addition, Google do not want to launch a network at scale.
The Google MVNO will only work with the Nexus6. “The focus of Google’s network could be on connecting devices other than phones, as watches, cars and other devices increasingly will include mobile connectivity features”.Mobile Identity

Different methods of identification and authentication, each suited to particular transaction types (from access to social network to official ID) ; biometric authentication as a new solution.
•    Digital identity card exists in Estonia (with digital authentication), biometric card exists in middle east and Africa (Algeria, South Africa)
•    Mobile authentication is a challenge for mobile operators, but the market is far from mass-market: demand is not ready for official ID authentication on mobile, standards are needed, as well as regulation.Mobile Id could be a leapfrog technology in emerging countries where people don’t even have identity papers, and have a mobile phone.
If mobile operators don’t manage to be positioned on this market, banks or social networks could.


PICTO VIRTUANetwork Function Virtualization (NFV) appeared last year during MWC and is now close to commercial implementation by mobile operators. Telefonica demonstrated a full network together with ALU and HP. It will integrate a vRAN, vCDN, vEPC and vIMS.
A first implementation of vRAN was presented by China Mobile which is collaborating with Alcatel-Lucent and Intel on Cloud-RAN, which is seen as a first step towards virtual RAN. NTT Docomo is working with NEC on virtualization of the core network (EPC).


LTELOGO2LTE-U technology is important and was present on many vendors’ booths. It will give free access to additional spectrum in the 5 GHz band currently used by Wifi. This will provide SDL (supplementary downlink) capability, providing extra capacity for downlink traffic, especially video. LBT (Listen Before Talk), the specific function which will allow smooth compatibility between Wifi and LTE in the 5 GHz band will be included in 3GPP Release 13 expected to be adopted in Q3 2016.
LTE and Wifi carriers can also be combined in order to provide higher throughputs but in that case, the benefits of LTE higher spectrum efficiency are not present.



Telcos: evolve or die


Didier Pouillot
Director of the Telecom Strategy Business Unit,
DigiWorld Yearbook project leader, IDATE

Digiworld Yearbook 2013


What is the future of telcos Business models ?

Increasingly stiff competition, particularly in Europe, and the growing role of the internet and OTT (over-the-top) services, has upset the telco industry. Revenue from calling minutes is tumbling, data traffic is exploding and NGN (LTE and fibre) rollouts require massive investments. This is the backdrop, then, against which telcos are having to consider the future of their business models.



Creating more value from access

They do have certain leverage to deal with this change, starting with creating more value from network access now that OTT services are increasing user consumption. NGN technologies allow telcos to increase speeds (‘best network’ strategy) and to introduce noticeable quality improvements, both of which can differentiate their offerings. The challenge now is to increase data revenue, smartphone and tablet use and to extricate themselves from the price wars raging in certain national markets. So we are starting to see new pricing strategies emerging, with per-minute charging being replaced by new ways of creating value from access and data: tiered pricing based on speed and access quality, data-sharing options between multiple devices and/or users, and bundles that include optimised access for a group of applications.
Other than necessary investment in infrastructure, implementing these innovative approaches also requires significant effort in upgrading software tools (OSS/BSS) in order to control traffic and usage in real time, and to provide the flexibility required for policy management and real-time charging.
Also worth underscoring is that operators see the migration of IT architectures to the cloud and the proliferation of connected objects (machine-to-machine, the internet of things) as major opportunities to earn back on some of their spending on access.


Moving toward two-sided markets

Alongside this strategy, telco services can take two approaches:
• adding value to access and using a two-sided market approach, by enhancing wholesale services: telco CDN,
• API agreements (billing, geolocation and others)
• beyond access, by relying on certain assets that underpin their originality. For example, value can be created from the personal information available through their consumer relationship, either by optimising their own offerings (downstream side in the two-sided structure), or by selling analytics services to third parties (upstream side).

The challenge is therefore to find the right balance so as not to destroy the image—and the value that comes with it—of a ‘trusted third party’ that consumers have of them. There are also increasing opportunities with regard to services. Operators can harness the creativity found in start-up companies, as seen with Telefónica Digital) while managing the risks of destabilising agreements that would likely be signed with major OTT players. They can also enter into collaborative projects, with players from user sectors (particularly within vertical markets), or between themselves to define applications deemed strategic (NFC and payment) or related to traditional interpersonal communication (see joyn RCS services). In particular, this would involve challenging the proprietary solutions developed by device manufacturers.


Industry reorganisation in the medium or longer term

These changes to business models tailored to operators’ specific assets could be accompanied by a consolidation of the telecommunications landscape in the more or less long term, particularly in Europe which has been singularly hard hit by the economic crisis and by having an extremely fragmented market. It is possible that the new round of mergers in the US could make its way to this side of the Atlantic, or result in a series of infrastructure sharing and pooled investments.

Maintaining the status quo could, on the contrary, only speed up European telcos’ loss of power, impede the development of NGN and, ultimately, result in their being taken over by carriers from the US or one of the powerful emerging economies.

About the Digiworld Yearbook

digiworld yearbook 2013
197 pages that deliver the finest market insights from IDATE experts who track the changes at work in the globe’s telecom, Internet and media industries throughout the year.

the DigiWorld Yearbook is published in English and French and available in print and PDF format. An iPad edition, developed by Forecomm, is also available.

The 2012 edition can be downloaded for free
The 2013 edition is available for purchase. Print: €99.99, incl. VAT; PDF and iPad: €54.99, incl. VAT


  • You can have a look at the digiworld yearbook 2013, purchase it or even download the 2012 version for free at : www.digiworld.org/yearbook/

The state of the digital world in figures

Interview with Didier Pouillot, Digiworld Yearbook project manager

Interview published in weekly letter from ARCEP - 7 June 2013

Find the intervew Didier Pouillot by ARCEP on the occasion of the publication of the 13th of the DigiWorld Yearbook: our annual publication on the state of the digital world. (Interview available in french only)

Source: ARCEP's website

Didier Pouillot reviews the status and trends of DigiWorld markets: telecommunications, computer and television, an economy that accounts for 6% of global GDP, but whose performance is currently short of those of the general economy, particularly in Europe, on which Didier Pouillot explains the situation. This is also an opportunity to recall the issues in each market of the digital economy with many business models are changing mainly because of internet giants: Facebook, Amazon, Google, Microsoft and Apple, and more broadly OTT services.

Discover the slides from the London Yearbook presentation with Ronan Dune, CEO Telefónica :

Digiworld Yearbook 2013 Presentation in London, with Ronan Dunne, CEO Telefónica UK Limited. from DigiWorld by IDATE

About the Digiworld Yearbook

digiworld yearbook 2013
197 pages that deliver the finest market insights from IDATE experts who track the changes at work in the globe’s telecom, Internet and media industries throughout the year.

the DigiWorld Yearbook is published in English and French and available in print and PDF format. An iPad edition, developed by Forecomm, is also available.

The 2012 edition can be downloaded for free
The 2013 edition is available for purchase. Print: €99.99, incl. VAT; PDF and iPad: €54.99, incl. VAT


  • You can have a look at the digiworld yearbook 2013, purchase it or even download the 2012 version for free at : www.digiworld.org/yearbook/

Interview with Dr. Osei DARKWA

COMMUNICATIONS & STRATEGIES No. 86, 2nd quarter 2012
Development of ICT in Africa

Summary : While the very rapid, although uneven, expansion of mobile telecommunication networks on the African continent is supporting a variety of services including voice, text messaging and Internet access, there is great variety in market structures, regulatory arrangements, and the way applications and services are being rolled out. This special issue is concerned with the way these technologies are contributing to economic and social development and with the barriers that countries in the region face as they seek to reap the benefits of increasing connectivity for their business communities, entrepreneurs and citizens. The papers analyse the challenges and barriers, as well as the opportunities, in the wake of the spread of mobile networks in the region based on experiences at the country level using aggregate data and at the within country level using qualitative data. Several papers show how infrastructure investment and regulation intersect with opportunities provided by voice services and data applications once networks are extended and offer affordable connectivity.



Interview with Osei DARKWA
President of Ghana Telecom University College (GTUC)
Conducted by Anders HENTEN (Aalborg University, Copenhagen)


C&S: Let's start with the mobile development. How do you see the mobile development in the overall development of ICT and telecoms in Africa?

Osei DARKWA: I obviously think that it's a very positive development that we have seen in mobile communications. This has provided access to communications for much larger parts of society. People do not anymore have to wait for a communication line as they did previously with fixed line communications. One could say that we have leapfrogged fixed line communications.

But is there a need for fixed communications also to develop or is mobile communications the only important avenue? This issue pertains mainly to the development of broadband.
We have to differentiate here: whether we talk about the access or the backbone networks. Fiber is used in the backbones, but access is mainly mobile. But yes, broadband is the only reason for developing fixed line communications in the access network. Apart from this, it's not really necessary. Internet can also be accessed via mobile communications. It's only because of the quality of service of mobile Internet access and because the support system is not always reliable that fixed broadband has a role to play.

How is it then with the development of mobile broadband – for instance in your own country Ghana?
In Ghana there are presently 6 mobile operators and there is stiff competition. We, therefore, see a great many innovations. However, competition is not equally tough in all African countries. In other countries, there are fewer operators. In Ghana, all 6 operators actually offer mobile broadband. However, use of it is not that high yet. I'd say that around 80% only use voice and texting, but there is absolutely progress in the use of mobile broadband – a development which is primarily facilitated by the diffusion of smartphones.

Do you see Internet in Africa developing as mobile communications have done?
Internet is the next great wave of communication developments in Africa. It will, as I have already emphasized, mostly take place based on mobile networks. There are, however, pricing and reliability issues that need to be solved. But fixed network elements are also very important for Internet developments. We have in Ghana a national fiber backbone, and almost all mobile operators have their own fiber ring. This helps offering Internet at a sufficiently high quality also on mobile connections.

One of the characteristics of the mobile development in Africa is that it has quickly been coupled with broader societal needs and developments such as education and health. How do you see this development unfolding?
There is certainly a great interest in the applications of e-services in many different fields, especially e-health, e-learning and, of course, also e-commerce. And, as mobile is the preferred mode of communication, m-health, m-learning, etc. are important areas to be developed. Indeed, a large number of initiatives have been taken especially in the banking and money transfer area. But development in most African countries is still relatively slow – although some countries have taken a fast leap forward. The basic reason for the relatively slow development is the low take-up of broadband. When accessing Internet, most people will still do it from their workplace or at an Internet café. In Ghana, only a small percentage of people accessing Internet will do it from home. The many different potential societal applications of mobile Internet are, therefore, mostly at the planning stage. But the potential is there, and there is also a potential for leaping quickly forward to develop the many useful applications of mobile communications.

In spite of the impressive development of mobile communications, there are still segments of the population which are not yet connected. What needs to be done to reach these parts of the population?
Most African societies are predominantly rural societies. Some 60% of populations live in small communities doing farming in the countryside. This is a difficulty as the spread of populations raises the investment costs and as the ability to pay is rather low. This is, however, an issue which has been on the policy agenda for quite some time in the individual countries as well as internationally with initiatives from World Bank, ITU, the Economic Commission for Africa, etc. In Ghana, one percent of mobile operators' revenues are collected bi-annually to support the provision of infrastructure in rural areas. But I also think that creating awareness is important. Mobile phones are mostly used for voice communications, and there is also need to create awareness that mobile communications can be used for data as well. Another issue is related to the costs. Using mobile broadband services is costly for rural families. Also, the infrastructure needs to be in place. But mobile broadband is advancing – as mentioned. People moreover need terminals. But actually, mobile phones are often not bought by those who use them. For rural users, phones will often be bought by relatives in the cities and then sent to villages in the countryside. But to sum this up: awareness, costs, and infrastructure are crucial elements to look at when aiming at extending communications to remote rural areas.

A much debated topic has been the role of telecenters. How do you see the role of telecenters in reaching the poorest segments of society?
This is a notion that has been around for a long time and it has also been funded by international organizations in different countries. In Ghana, the Ministry of Communications has taken the initiative to construct more than 200 Community Information Centers. And, in for example Senegal and Uganda, there are significant telecenter developments. But I don't think this is the main avenue for the development of communications in Africa in general. The main avenue is the still wider diffusion of mobile communications and telecenters are only a supplement to this main development in reaching those that are still not connected.

Returning to the infrastructure issues: How has the international economic crisis affected the investments of operators in the infrastructural roll-out?
There may have been some effect, but it's not significant. African countries are to different extents linked to the international economy, but the crisis has not really affected the investment side of communication developments. One could say that the effects are more indirect in the sense that Africans living in other parts of the world send remittances to their relatives back home. Here, the crisis has affected the situation as far less money is being sent home. One could say that it's more on the demand side that the international economic crisis has impacted on the telecoms development. In other areas, in Ghana especially the oil area, there has been a great influx of foreign investments, and Chinese investments are all over. But in the telecoms area, the implications have mostly been indirect.

If we look at the regulatory framework, where do you see the greatest challenges for a continued development of the telecoms infrastructure? Are there any regulatory issues that must be addressed?
The situation of course varies in different countries. But yes, there are regulatory questions that need to be addressed. In my country Ghana, many of the telecommunication policies are obsolete. This applies to frequencies as well as infrastructure policies in general. They need to be reviewed. We have, for example, seen the development of VoIP, where there are regulatory obstacles, which set the country back. Technology developments have in different cases gone past the regulatory framework, and this needs to be looked into. The problem is that there is not sufficient pressure from advocacy groups. They are not strong enough and the pace of regulatory development is too slow.

How effective are the regulatory institutions?
For the regulatory institution that I know best, namely the one in Ghana, I'd say that it is relatively effective. But there are challenges regarding the general policy development related to fast changing technologies. The implementation of number portability has, as an example, worked well, and if we take the broadcast area, the transition to digital broadcast has also been successful. But the challenge is the general policy development in following up on new technology trends.

Is there a necessity for public investments in the infrastructure or are private investors/operators sufficient for a continued development?
Yes, I think that there is a need for public investments in the sector. The technologies are changing very quickly, and there is a need for countries to be on top of this development – so to say. In Ghana, a national fiber backbone was built from public money provided via a loan from China. There is also public money in the building of a national data center. In general terms, there needs to be a co-operation between the private sector and the public sector in this area. Most of the infrastructure will be built with private money, but there are specific fields where public investments are necessary.

How do you see the prospects in regional cooperation, for instance in the Ecowas area? Does such regional cooperation have any effect on ICT development?
There is a movement in that direction and there have also been initiatives to that effect for many years, for instance the ideas about creating a common currency in the West-African area. Ecowas is a good example of this. But one has to admit that this has often been more of a 'taking shop'. Many issues – also in the area of communications and IT – have been taken up. But it's more on the conceptualization level than the implementation level. But then again, there are common backbone initiatives, and the Economic Commission for Africa has also been pushing for regional initiatives.

When looking 10 years ahead, which will be the most important issues on the ICT and telecoms agenda?
The most important issue for the coming period will be the development of broadband. The access part of this will mainly be mobile, but the development of fixed backbones is part of it. So, mobile is the important development avenue, and here the crucial elements are the lowering of costs for the operators as well as the users. Quality of service is also a central issue. And then, there is the whole discussion concerning the many applications in health, education, banking, etc. I must say that I'm rather optimistic taking the last 10 years into account. It's been an impressive development in many ways.
Short Biography

Osei Kofi DARKWA was appointed first Principal of Ghana Telecom University College (GTUC) on November 16, 2004. He assumed this leadership position after more than two decades of higher education, administrative, consultative and managerial experience in Norway, the United States, and his home country, Ghana. Dr. Darkwa is an accomplished leader, an effective speaker, a writer par excellence, a true visionary and a holder of an impressive record of academic and research accomplishment. Notably he has written well over 120 articles on various ICT topics which have been published in the Ghanaian Times between May, 2006 and July, 2008. Dr Darkwa has published numerous papers and articles on the Internet and in peer-reviewed journals on ICT development in Africa. He has written on topics such as distance education, telematics, multipurpose community telecenters, and virtual institution building. He has participated in various television and radio programmes and delivered lectures on ICT that cut across various topics across the country and beyond. Dr Darkwa has played a leadership and pioneering role in the community informatics movement as well as a key role in ICT capacity building, education and training. He has membership with key ICT-oriented organization.

> For more information about our activities: www.comstrat.org

Sophie NIGON
Managing Editor


DigiWorld Yearbook 2012 by IDATE (1/3)

Scorecard for the digital economy in 2011

IDATE has published the 12th edition of its DigiWorld Yearbook which provides readers with a concise portrait of the digital world. The Yearbook begins with a look back at the trends that shaped 2011, then goes on to explore the key issues in 2012 and takes a looks at the map of the digital universe.

The DigiWorld momentum: new internet markets vs. traditional communication service markets

Digital market momentum calling existing models into question: usage explodes while revenue inches slowly up

Generating €3,069 billion in revenue in 2011, DigiWorld – i.e. telecoms, IT and television – markets grew only slightly last year and by three points below the economy as a whole . But the rate of innovation has not flagged, thanks to which equipment and consumption levels continue to rise at a steady clip – this is especially true of smartphones and tablets – while new markets on the periphery of the DigiWorld’s core continue to grow and flourish.

The good news is that DigiWorld market growth in 2011 was roughly equal to what we saw in 2010, as the momentum of markets playing catch up the year before was sustained, despite fears that it would slow. So while some concerns were alleviated, the past year did confirm two things:

  • the growing performance gap between the sector and the economy as a whole and
  • the 1.5 to 2-point drop in growth rates compared to the mid-2000s.

In addition to the impact of the still grim economic climate, particularly in Europe, what we are seeing are no doubt long-term trends due to the structural changes occurring in every single ICT industry sector.

Geographical perspective

From a geographical perspective, North America is faring better than Europe, reporting 2.7% growth compared to a mere 1% on this side of the pond. But the most significant and growing gap is between advanced and emerging regions: although the former continue to generate the bulk of market revenue – accounting for 68% of global DigiWorld industry income in 2011 – they did lose close to two points compared to the year before. While still being powered by China, the momentum of emerging markets is also being sustained by a number of other Asian nations – starting with India of course, but also smaller countries like Vietnam and Malaysia – and by the counties of Africa and the Middle East as a whole. Equipment levels in all of these places are rising quickly and steadily.

Sector-specific perspective

Looking at the individual sectors, hardware markets as a whole made greater progress than services in 2011, with the notable exception of consumer electronics which are suffering from a drop in the price of flat screen TVs, and shrinking sales for other types of hardware such as MP3 players and GPS devices. Over in the services segment, the outstanding phenomenon is the decline of certain core DigiWorld businesses which are being shoved aside by especially dynamic new markets, including the various managed and OTT services over IP – from search and social networking to online advertising, by way of VoIP, IPTV, etc. – along with mobile applications, M2M, cloud computing… not to mention e-commerce of course.

Once again this year, an entire chapter has been devoted to the top ICT market players’ transition to IP and digital. Taken as a whole (including access, software and content), the Internet sector now accounts for 5% to 10% of the ICT services market in advanced economies and, more significant still, most of its core components continue to grow by more than 20% a year.

> Visit the DigiWorld Yearbook website : www.digiworld.org/yearbook2012/