Low cost smartphone users to pass half billion mark by year end

Cheap smart phones and capped Internet access are the trends to look out for in 2012, according to Deloitte's annual Predictions for the Technology, Media & Telecommunications (TMT) sector. Deloitte's consultants credit mobile devices and multifunctional handsets as the main drivers for the sector in recent years.They also pick out low cost smartphones, which the firm defines as a less than USD 100 price tag, as being ideal for both the developed and the developing world. Cheap smartphones are “the perfect teenage ‘starter’ phone in developed markets, while also being the solution for emerging markets' users, with limited Internet access but a growing desire for communication and information services,” believes Ahmed Hassan, Managing Partner and TMT Industry Leader, Deloitte Balkans. Worldwide, the number of low cost smartphones in use is expected to pass the half billion mark by the end of the year.

But all this extra Internet use comes at a cost, Deloitte's analysts foresee more capping as service providers struggle to provide space for traffic. “With demand growing at over 30 percent a year and traffic at peak times, many network providers are forced to introduce bandwidth caps to alleviate congestion,” says Alina Mirea, Audit Director, Deloitte Romania. She adds that short range wireless connections that bypass the web could also help give strained networks some relief. Liam Lever, liam@romania-insider.com (photo source: Photoxpress.com)