• Thursday, November 14, 2024
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Four predictions to expect for the tech and telecoms industry in 2025

4 Predictions to Expect for the Tech and Telecoms Industry in 2025 (2)

The tech and telecommunications industry of 2025 is set to witness pivotal developments across artificial intelligence, quantum technology, mobile networks, and global taxation policies. These advancements will influence industries, reshape international relations, and impact consumer and business markets worldwide.

According to the “Tech and telecoms outlook 2025: A test of intelligence” report by the Economic Intelligence Unit(EIU) “Artificial intelligence will continue to drive the technology sector in 2025, but firms will be under pressure to show returns.”

The report forecasts key trends in AI and telecommunications for 2025. Many companies will remain at the proof-of-concept stage, struggling to achieve returns on AI investments. Demand for semiconductors will shift to AI applications, influenced by geopolitical tensions between China and the West.

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Also, online content regulation will begin to converge, balancing power between internet companies and governments, though countries will adopt varied approaches. More nations will launch satellite internet services targeting military and maritime clients, with Amazon’s Kuiper project expected to disrupt the dominance of Starlink and Eutelsat OneWeb.

These developments will require adaptation from businesses, governments, and consumers.

According to EIU, Here are the 4 predictions to expect for the tech and telecoms industry in 2025

1. Apple Intelligence: Broadening AI access for consumers

Apple’s newest AI platform, Apple Intelligence, first launched in late 2024, will see a broader release in early 2025. This update, anticipated for the iOS 18 rollout in March or April, will offer an advanced version of Siri. Apple Intelligence will make AI tools available to a larger audience, expanding access to AI-powered applications and services across the company’s devices.

However, the service’s European release remains uncertain. Apple has cited potential challenges around regulatory compliance, particularly with the EU’s Digital Markets Act (DMA). As regulatory frameworks evolve, questions around data usage, privacy, and market dominance continue to shape Apple’s decisions on product availability in Europe.

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2. The international year of quantum science and technology 2025

UNESCO’s decision to designate 2025 as the international year of quantum science and technology commemorates a century since the development of quantum mechanics. This landmark acknowledgement will heighten attention on the potential of quantum computing, even though widespread application remains distant. Quantum computing holds the promise of exponential increases in processing power, with possible applications in fields ranging from medicine to finance.

The primary focus in the near term will be on encryption, given the possibility that quantum computers could disrupt current encryption standards. Companies are increasingly investing in quantum technologies, hoping to find secure and scalable solutions. However, bringing quantum computing to a level of broad commercial application will require overcoming significant technical challenges, including the large-scale stabilisation of qubits.

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3. 6G standardisation begins: Setting the stage for the next generation of connectivity

In 2025, 3GPP, the global standards-setting body for the telecoms industry, will initiate work on 6G standards. The standardisation process will commence with technical working groups expected to convene in the third quarter of the year. Although final standardisation will take time, high-level discussions on principles and potential use cases will begin.

One anticipated shift is the move towards a more software-driven approach for 6G, as many telecom operators remain hesitant to undertake costly infrastructure upgrades. Efforts are also underway to ensure a unified global standard. However, this could face obstacles, as China is actively promoting its vision for 6G globally, potentially leading to competing standards.

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4. The OECD tax deal: A potential source of trade tensions

The ongoing efforts to establish a global tax agreement by the Organisation for Economic Co-operation and Development (OECD) have yet to achieve consensus. The proposed deal includes reallocating tax revenues to jurisdictions where revenues are generated and introducing a 15% minimum corporate tax rate. Without an agreement, many countries are expected to pursue their own digital services taxes (DSTs) aimed at capturing more tax revenue from large technology companies.

Most major technology companies are headquartered in the United States, and any unilateral tax measures from other countries could provoke responses from the US government. The resulting tax dispute could lead to trade tensions, especially as countries seek more equitable taxation of digital services without a unified global tax framework. The resolution of this issue will be critical, as it could affect global digital trade and the operations of multinational technology companies.

Chisom Michael is a data analyst (audience engagement) and writer at BusinessDay, with diverse experience in the media industry. He holds a BSc in Industrial Physics from Imo State University and an MEng in Computer Science and Technology from Liaoning Univerisity of Technology China. He specialises in listicle writing, profiles and leveraging his skills in audience engagement analysis and data-driven insights to create compelling content that resonates with readers.

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