Top 10 tech trends see broader search engines, faster telecom.

The Technology, Media and Telecommunications (TMT) industries in Canada and around the world will face significant changes, challenges and opportunities in 2006 and beyond, according to a new study released recently by Deloitte. The 2006 edition of Deloitte's Technology, Media and Telecommunications Predictions is based on input from more than 5,000 TMT practitioners, firm clients and analysts.

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"In 2006, Canadian TMT companies will face tougher competition, greater challenges and have little time to respond to market shifts and new technological inventions," said Garry Foster, national director, TMT, Deloitte. "Companies can lead the domestic and global markets but need to take into account these changes and constantly re-evaluate and adjust their business strategies as they look into the future."

The top 10 trends for Canada are identified in the three-part series of Deloitte predictions reports. One is "Googlemania"--2006 marks the turning point for search engines, which are poised to displace e-mail as the most-used digital application, thanks to their rising functionality, and ever-expanding volume of searchable data and higher-speed connectivity. The scope of search, while still based on text-based key words, will expand to include digital data held on devices such as PCs, mobile phones, digital cameras and personal video recorders (PVR).

Audience fragmentation, long regarded by the media industry as a drawback, is likely to be embraced by media companies in 2006 and beyond as a catalyst to growth.

In the coming year, many telecom operators, both fixed-line and wireless, will compete on the basis of speed. Fixed-line operators are already deploying a variety of new infrastructures such as Fibre to the Home (FTTH) and ADSL 2, to deliver high speed connectivity. Meanwhile, mobile operators will start challenging fixed-line operators to a speed race that may lead to a frenzied quest for speed at the expense of crucial factors such as real market needs and profitable business models.

Emerging applications such as Voice over internet protocol (VOIP), video security systems, e-commerce and online music will likely continue to rely on broadband connectivity. But, unlike music and e-commerce companies that charge for every download or transaction, telecom companies that provide the bandwidth may not accrue additional revenues as they charge flat fees for connectivity and not for the services used. Thus in 2006, telecom companies may find themselves convergence losers unless they develop new event-based business models that generate additional revenue for each service used on their platform such as a song download, VoIP call, a video stream or an internet search.

This year may see two different types of VoIPs take shape as well, each following a markedly different path. Managed VoIP services offered by specialist VoIP service providers and telecom companies will rapidly gain market share. By contrast, ad-hoc VoIP, which uses the open internet as the service platform, may struggle to gain market and steady revenue stream.

For full copies of the reports, or further information on Deloitte's TMT Practice Group, visit Deloitte's website at www.deloitte.ca