Earlier today, Ericsson’s ConsumerLab released the 5th edition of its annual trend report [pdf]. The report indicates consumers believe artificial intelligence will soon enable interaction with objects without needing a smartphone screen. Indeed, half of all smartphone users expect smartphones to become things of the past within the next five years.

These are the top 10 trends identified in the report:

1. The Lifestyle Network Effect. Four out of five people now experience an effect where the benefits gained from online services increases as more people use them. Globally, one in three consumers already participates in various forms of the sharing economy.
2. Streaming Natives. Teenagers watch more YouTube video content daily than other age groups. Forty-six percent of 16-19 year-olds spend an hour or more on YouTube every day.
3. AI Ends The Screen Age. Artificial intelligence will enable interaction with objects without the need for a smartphone screen. One in two smartphone users think smartphones will be a thing of the past within the next five years.
4. Virtual Gets Real. Consumers want virtual technology for everyday activities such as watching sports and making video calls. Forty-four percent even want to print their own food.
5. Sensing Homes. Fifty-five percent of smartphone owners believe bricks used to build homes could include sensors that monitor mold, leakage and electricity issues within the next five years. As a result, the concept of smart homes may need to be rethought from the ground up.
6. Smart Commuters. Commuters want to use their time meaningfully and not feel like passive objects in transit. Eighty-six percent would use personalized commuting services if they were available.
7. Emergency Chat. Social networks may become the preferred way to contact emergency services. Six out of 10 consumers are also interested in a disaster information app.
8. Internables. Internal sensors that measure well-being in our bodies may become the new wearables. Eight out of 10 consumers would like to use technology to enhance sensory perceptions and cognitive abilities such as vision, memory and hearing.
9. Everything Gets Hacked. Most smartphone users believe hacking and viruses will continue to be an issue. As a positive side-effect, one in five say they have greater trust in an organization that was hacked but then solved the problem.
10. Netizen Journalists. Consumers share more information than ever and believe it increases their influence on society. More than a third believe blowing the whistle on a corrupt company online has greater impact than going to the police.

What opportunities are being created by these trends? How will existing businesses be transformed?

Ericsson identifies three important underlying shifts:

• All consumer trends involve the internet – many aspects of our physical lives are merging with our online habits;
• Early adopters are less important – as the speed of technology adoption increases, mass-market use becomes the norm much quicker than before;
• Consumers have more influence – only a few years ago, the focus was on how the internet is influencing consumers, now consumers are using the internet to influence what goes on around them.

The report provides insights from various studies conducted by Ericsson ConsumerLab over the course of the past year. Ericsson ConsumerLab interviews 100,000 individuals each year in more than 40 countries and 15 megacities, statistically representing the views of 1.1 billion people. Using both quantitative and qualitative methods, hundreds of hours are spent with consumers from different cultures. Ericsson ConsumerLab has analysts in all of the regions where Ericsson operates, giving it a global understanding of the ICT market and emerging business models.

Ericsson will be returning once again to The 2016 Canadian Telecom Summit, taking place June 6-8, 2016 in Toronto. Will you be there too?

IT Business is reporting that the City of Mississauga has approved a new information technology master plan [pdf, 770 KB]. According to the Plan, “The IT Master Plan is a well-informed vision for the adoption of technology that will enable the transformation of the City of Mississauga into an engaged and connected City.”

The Plan is built around four key strategies to provide focus for action plans over the next three to five years, as summarized in the article:

• Foster open and accessible government. Use technology to enable easy and convenient access to services and information, host an Open Data hackathon in 2016, implement the digital strategy and increase mobile accessibility.

• Enable decisions through research and analytics. Develop a Big Data framework that enables analytics, dashboards and data visualizations providing timely and relevant management information.

• Create a connected and engaged workplace. Connect services and collect information through sensors and connected devices by implementing Smart City initiatives that will allow the city to better manage services with visibility on how they are performing and the ability to affect changes on services in real time.

• Improve services through innovation and partnerships. Provide opportunity and access to technology in the community that spark innovation and partnerships to provide and enhance services.

It is worth taking a look at the work that has been done by Mississauga to set out some ambitious plans. There are a half dozen concrete actions already set out for 2016, as well as other initiatives to improve the delivery of services to the community.

The mere existence of an IT Master Plan makes a statement about the City of Mississauga. What can other municipalities and all levels of government learn?

Mark Zuckerberg of Facebook announced that Internet.org has expanded the availability of its Free Basics service throughout India. For the record, I think this is an outstanding project and I applaud the efforts to develop a creative, market approach to increase the levels of adoption of digital connectivity among low income households.

As I have written before, there are some activists that object to selective zero rating of services, under a belief that all applications should be treated alike by all access networks. Either all or nothing for free services.

I can’t figure out the business case that supports that view.

On the other hand, I can fully appreciate the free sample approach for Free Basics. Reports from Internet.org say that half the people on Free Basics upgrade to a paid full internet service.

50% of people who use Free Basics are paying for data – and access the internet outside of free basic services – within 30 days of coming online for the first time.

It isn’t surprising. “Try it, you’ll like it” was the tag line in early 1970’s advertising for Alka Seltzer. The fact is, it works. That is why there are sample tables at grocery stores.

No, Free Basics isn’t providing access to the entire internet. But, let’s be realistic. It is free. And as the name implies, the service provides some important basics.

Those free samples at the grocery store aren’t supposed to be a full lunch or dinner.

Maybe we need to approach zero-rated services is by remembering that not every service is supposed to take the place of a full internet access service.

I noticed internet packages on a cruiseship line that offer three levels of access: Social ($5 per day) offering access to Facebook, Twitter, WhatsApp and a handful of other messaging sites; Value ($16 epr day) with most of the web but no Skype or streaming services; and, Premium ($25 per day) with the full internet. Should passengers be filing complaints with regulators about network discrimination? Or, do we accept that the cruise line is offering choice. If you want full internet, it costs $25 per day, but if you can get by with parts, here are some lower priced alternatives.

As Zuckerberg says in his annoucenment, the latest expansion of Free Basics is another step toward connecting all of India. I have said it before, but it is worth repeating: banning zero rated services raises prices for some, reduces rates for no one while limiting choice for all.

With respect to retail services that are highly competitive, regulators might want to consider less intervention in order to allow innovative business models to emerge. Heavy handed ex-ante regulations are likely to inhibit innovation and ultimately deliver questionable consumer benefits.

Zero-rating is “pro-competition” and “pro-innovation” according to FCC Chair Tom Wheeler.

In an article under a banner of “Ministry of Innovation / Business of Technology”, Ars Technica reports that Tom Wheeler praised T-Mobile’s program that exempts certain online video services from data caps, under its new Binge On service.

If anyone were to file a complaint against T-Mobile’s video exemption, Wheeler doesn’t seem likely to stop the practice.

“Its clear in the Open Internet Order that we said we are pro-competition and pro-innovation,” Wheeler said today. “Clearly this meets both of those criteria. It’s highly innovative and highly competitive.”

The CRTC is currently holding an inquiry into whether to prohibit Videotron’s “Unlimited Music” offering that exempts data metering of certain music services. In January 2015, the CRTC shut down mobile TV services from Bell and Videotron that offered video programming on the basis of flat rate charges per hour rather than charging for data consumed.

A few years ago, I wrote

It is difficult to understand how consumers can benefit from restrictions in the types of offers available to them.

How can it possibly be in the interest of end-users to have only one price structure in the marketplace?

In another post, “Zero is better than nothing“, I wrote “Consumers can benefit greatly from creative, competitive, targeted pricing plans. Regulators need to be careful imposing restrictions on the evolution of business models.” Those words came out 2 weeks before the CRTC took away choice for Canadian consumers to have mobile TV.

Banning zero rating has the result of raising prices for some consumers and lowering prices for no one.

The FCC is making it clear that it won’t stand in the way of innovative pricing models. A month ago, I asked “Does CRTC policy inhibit investment“?

Will the CRTC continue to deny Canadian service providers the opportunity to offer consumers the choices of services available to Americans?

Planning has begun for The 2016 Canadian Telecom Summit.

Mark the dates in your calendars: The 2016 Canadian Telecom Summit will take place in Toronto on June 6-8, 2016.

The theme for The 2016 Canadian Telecom Summit will be: “Transforming our digital world: The journey to universal connectivity.”

Now is the time to get in touch with us for speaker proposals and sponsorship inquiries.

Registrations are now open – and yes, some people are already registering. Do you have funding left in your 2015 budget?

You can register online and get a receipt right away.

I look forward to seeing you at The 2016 Canadian Telecom Summit, June 6-8, 2016, at the Toronto Congress Centre.