TIME Austria | Wirtschaftsblatt | 04 May 2012

New Telecom World starting descent

The Austrian Business Daily WirtschaftsBlatt reports about Arthur D. Little’s study “Telecom Operators: Let’s Face It”. Karim Taga, Global Head of Arthur D. Little’s Telecommunication, Information, Media and Electronics (TIME) practice is quoted saying that the competition from “Over-the-top”-Players like Google or Apple with IP telephone- and SMS-services will see revenues of telecommunication providers decline. Especially for the Austrian mobile phone-operators this trend means a dramatic loss of revenues of between four and five percent. Taga is, however, more optimistic and sees better chances for the telcos in the new field of IT-Solutions for mobility, energy, retail and health.

TIME Germany | Handelsblatt | 04 May 2012

Telecommunications: no end of downturn in sight

European telecommunication companies fight the erosion of their core business through declining revenues from phone calls and internet usage. The harsh competition with aggressive flatrate, triple-play offers and demanding stipulations from regulators puts turnover and margins under pressure. Now, the telcos put their hope in two new areas: new business segments with online-based services including telematics for e.g. remote access facility management and a new business segment with the increasing amount of data being sent through the internet-backbone. Still though, an Arthur D. Little study recently revealed, these expectations will not come true. The strategy consultants see bundling of the several services as a favourable option.

TIME UK | European Communications | 02 May 2012

Why do the markets continue to shun Telefónica?

Telefónica is now the biggest European operator in terms of revenue, but the stock market continues to give the company the thumbs down. The article states that after registering a 3.5 percent year-on-year increase in revenues during 2011, to €62.8 billion, the Spain-based operator overtook rival Deutsche Telekom, which saw sales fall six percent to €58.6 billion over the same period. Carlos Abad, Managing Director of Arthur D. Little’s Spain practice, believes the operator is being harshly judged. He is quoted as saying “Telefónica’s value is penalized in excess because of its Spanish nationality and the generally bad market sentiments towards the country. Telefónica has, of course, exposure to the severe recession in Spain, but has acted very decidedly to reduce payroll, retain clients and lower acquisition costs eliminating subsidies.”

TIME UK | Total Telecom Plus | 01 May 2012

Business and Finance: New Markets Vertically Challenged

An article about Arthur D. Little’s report: ‘Telecom Operators: Let’s Face It’ – the 11th edition of the annual report from Arthur D. Little and equity broker Exane BNP Paribas. The report focuses on the move to all-IP and the impact on European Operators as it creates opportunities for telcos in adjacent markets such as automotive, energy and utilities and financial services. The article states that there is doubt over whether the opportunities will be enough to stem the decline in core revenue and some say telcos will have to take a long-term view, dig deeper into adjacent markets and consider making acquisitions. “When not only everyone, but also everything is connected, surely telecoms should benefit,” notes the Arthur D. Little report.

TIME UK | Total Telecom Plus | 01 May 2012

Winging It

An article about how addressing new industry verticals could prove to be more of a leap of faith than telecoms operators anticipated. Didier Levy, Director at Arthur D. Little is quoted warning operators if they do not act quickly to address these opportunities, over-the-top (OTT) players probably will. He says the OTT risk could repeat itself in these new verticals… (OTT companies) are experimenting.

TIME UK | European Communications | 27 April 2012

The three strategic routes left open to operators

An article written by Richard Swinford and Didier Levy of Arthur D. Little, explaining why European operators need to implement far-reaching strategic choices now in order to protect the bottom-line. The best next action for operators will depend on their market position, ambitions in terms of global reach and other differentiating factors. Swinford and Levy predict three key strategic routes will emerge: The Mega Operator, The Local Hero and The Infrastructure Play.

Manufacturing Germany | Handelsblatt | 23 April 2012

Decampment to new markets

Most mechanical engineering companies put most of their stakes for too long in a high-tech strategy. On the other hand the players covering the medium segment make it harder for Chinese competitors to catch up in terms of market share. But companies need to gain ground in developing countries. In order to do that, Bernd Hirschle, an expert for distribution strategies at Arthur D. Little says: “The developments for the medium segments cannot be driven from Germany or other leading countries in mechanical engineering. Lokal markets need to be serviced with local products“, he says. “A shift in thinking is essential here. It is vital to have the guts to displace core competencies into these new markets“, he continous.

TIME UK | TelecomTV | 19 April 2012

European telco revenues set to decline

An article about Arthur D. Little’s report: ‘Telecom Operators: Let’s Face It’ – the 11th edition of the annual edition from Arthur D. Little and equity broker Exane BNP Paribas. The article states that core European telco revenues will decline by 1.8 per cent per year until 2015, partly due to the competition of OTT services. Didier Levy, Director in Arthur D. Little’s Telecommunication, Information, Media and Electronics (TIME) practice is quoted saying European operators will need to design and implement new business models as well as consider revenue opportunities in adjacent businesses.

TIME UK | Total Telecom | 17 April 2012

European core telco revenues to decline 1.8% per year until 2015

An article about Arthur D. Little’s report: ‘Telecom Operators: Let’s Face It’ – the 11th edition of the annual edition from Arthur D. Little and equity broker Exane BNP Paribas. The article explains why Europe’s telco sector will see core revenues decline by 1.8% per year through 2015 unless operators make dramatic changes, including cost-cutting and moving into new sectors. Didier Levy, Director in Arthur D. Little’s Telecommunication, Information, Media and Electronics (TIME) practice predicted that depending on the strategy implemented, operators will fit one of three profiles: ‘the mega operator’, ‘the local hero’, or the ‘infrastructure play’.

Technology & Innovation Management Germany | manager magazine online | 13 April 2012

Western machine builders vs the rest of the world

The new challenge for the German mechanical engineering industry is what has already been achieved by  Germany’s car manufacturer’s years ago - - successfully conquering the fast growing emerging countries. „Car manufacturers procure locally, produce locally and even develop in the BRIC-countries. In Germany this is not the case where the mechanical engineering industry is coined predominantly by small and medium sized companies“, says Markus Achtert from Arthur D. Little. „When it comes to new business in China or India, the magic term for them is middle segment“, the expert continues. For customers in China or India, the products have to be good, but – taking the price into account - only good enough and not premium.

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