Financial Services, TIME Germany | Handelsblatt | 03 July 2012

Deutsche Telekom says Goodbye to Cash

Together with Mastercard, Deutsche Telekom will launch a credit card that includes a chip for Near Field Communications (NFC) enabling a contactless exchange of data at the cash box. From 2013, the credit card shall be an important part of the mobile wallet which is a digital platform that can be used by banks, businesses and other credit card companies. “It will be hard to profit from huge emerging business”, says Dr. Michael Opitz from Arthur D. Little’s TIME Practice in Germany. “As of today there is no business model that is proven to make money.”

Automotive, TIME UK | South China Morning Post | 29 June 2012

Smart cars and what they will bring

An article about the future of smart cars and how software is probably more reliable behind the wheel than humans. The article discusses the current status of this revolution including ‘infotainment’ which includes intra-car systems that use iPads and Wi-fi hot spots to enable gaming, movies and web browsing.  Stuart Keeping, Partner at Arthur D. Little, is quoted as saying ‘The future of connected cars will require both worlds – on-board communications units and smartphones. Critical remote services such as remote shut-down and tracking and tracing will only work with an embedded system, since the smartphone usually doesn’t stay in the car.’

Energy & Utilities Germany | Financial Times Deutschland | 28 June 2012

Costs for Offshore-Windparks divide Network Operators

The turnaround in energy policy in Germany – to include more renewable energy resources into the power generation mix over the next decade – creates real challenges as the connection of offshore wind farms in the North Sea with the power network will be delayed. Therefore, the wind farm investments cannot yield any return. Dr. Matthias von Bechtolsheim, Partner at global management consultancy Arthur D. Little says “The current delays lead to considerable reservation on the investors’ side.” Therefore, for future growth, the investments into the offshore-connection are needed as soon as possible.

TIME UK | Financial Times | 19 June 2012

European operators ready to talk mergers

An article about mergers and acquisitions in the telecoms industry. The article states that European telecoms groups have experienced a decline in revenues over the past few years, even as they face the need to spend more on fibre cables and fourth-generation mobile networks. Arthur D. Little and Exane BNP Paribas are quoted as forecasting a €19bn decline in revenues in European telecoms by 2015 to €208bn, in spite of a rapid rise in demand for data that will require greater network expenditure from the operators.

TIME UK | FT.com | 19 June 2012

EU telecom operators ready to talk M&A

An article about mergers and acquisitions in the telecoms industry. The article states that European telecoms groups have experienced a decline in revenues over the past few years, even as they face the need to spend more on fibre cables and fourth-generation mobile networks and that the European sector carries €272bn of debt. Arthur D. Little and Exane BNP Paribas are quoted as forecasting a €19bn decline in revenues in European telecoms by 2015 to €208bn, in spite of a rapid rise in demand for data that will require greater network expenditure from the operators.

Germany | Wirtschaftswoche | 18 June 2012

The Globalization of R&D Departments

When emerging markets turn into buyer markets, it has an enormous impact on the future strategy of exporting companies: They have to adapt their products to the requirements of the new market as export only is not enough anymore. But that leads to the demise of a traditional Western dogma, that at least the R&D departments of the companies will not be outsourced. An Arthur D. Little study shows globalization has already captured companies’ R&D departments. Dr. Fabian Doemer, Arthur D. Little’s Managing Partner in Germany says “European companies even take an active role in dislocating their R&D departments to those markets where the products will be bought.”

Energy & Utilities, TIME Germany | Handelsblatt | 05 June 2012

Vodafone wants to head power stations

The telecommunication corporations currently discover the market for energy-services. Following Deutsche Telecom’s move, now Vodafone wants to earn money with the nuclear exit that Germany has decided upon. Vodafone offers companies and public utilities a joint development of virtual power stations so that the companies can lower their energy costs and the public utilities can better coordinate supply and demand of energy. This is essential for Germany’s energy market in the wake of the government’s decision to shut of nuclear power. Arthur D. Little sees growths rates of more than 30 % for the telco-companies within this new network control-market.

TIME UK | The Observer | 27 May 2012

Third time lucky for the Telefónica boss exploring brave new digital worlds

An article about Matthew Key, previous CEO of Telefónica. The article states that Key is leading the most explicit effort yet by a mobile phone company to participate in the digital goldrush. Key left his role as CEO of Telefónica, overseeing 30,000 staff, to run a newly created division designed to house just 6,000, working in a rather random assortment of internet and television businesses collected by the Spanish telecoms firm. Arthur D. Little is quoted as saying Telefónica’s revenues from non-traditional business lines could be around €5bn by 2013.

Automotive, Financial Services, TIME Germany | Handelsblatt | 23 May 2012

Telecom-CEO on a tough mission

Due to regulations, new IP-technologies and innovative over-the-top-competitors, traditional turnover with telecommunication-services like voice- and mobile transmission are at stake: According to a recent Arthur D. Little-study, European Telecommunication-companies will face an annual drop of about 2% in turnover until 2015. Still though, the consultants from Arthur D. Little see several opportunities in adjacent markets like Financial Services, Automotive or the internet of things for the Telcos, to mitigate the decline.

TIME Germany | Focus | 14 May 2012

Web-economy : Cable contra telecom

An increasing number of customers use the TV-cable for high speed surfing. So far, the incumbents in Germany have not managed to provide an answer to that issue. “In the last years, Deutsche Telecom did not extend their fiber optics net sufficiently“, says Dr. Michael Opitz, TIME-Director for Central Europe at Arthur D. Little. But throught the eyes of Deutsche Telecom, the investments into fiber optics are too high and returns uncertain. Therefore the Telecom CEO still asks for help from the government.

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