M-Payments in M-BRIC

How to best leverage the upcoming opportunity

Mobile financial services are experiencing a global surge, especially in emerging markets. Global total transaction volume is expected to reach approximately USD 280 billion by 2015. Clearly, there is an enormous potential for M-payments in M-BRIC countries, but how to best capture it? This article provides an overview of the best entry strategies and indicates how players in each country must consider specific local requirements in order to succeed in the m-payment market.

Released: July 2010

To download please login or register as a new user ADL_2010_M_Payments_in_M_BRIC.pdf (.PDF, 720 kB)

Smart Grid opportunities for telcos

New business models in the electricity market of the future for telcos

Existing electricity grids are not capable of satisfying the increasing demand for a reliable electricity supply in the long run. The growing proportion of decentralized electricity generation based on renewables is making electricity transport and distribution significantly more complex, yet the existing electricity network, which in many cases originates from the middle of the last century, is reaching its capacity and capability limits. A “Smart Grid” – one that links innovative information and communication technologies with traditional electricity components – will deliver intelligent and highly automated grid maintenance and management. New business models and emerging players will change the rules of the game!

Released: June 2010

To download please login or register as a new user ADL_Smart_Grid_01.pdf (.PDF, 693 kB)

Untying the Gordian Knot

Digital Rights Management

The media debate regarding DRM the past few years has pitted two groups against each other: End users accused of wanting a free lunch (e.g., through file sharing) and content owners who sometimes have been overambitious in building fences around their rights.

This paper firstly provides an introduction to the concept of DRM. It then identifies needs of end users and other stakeholder groups and analyzes how well today’s DRM systems fulfill these needs. The paper then analyzes legal and regulatory perspectives around DRM before drawing conclusions on which end game for DRM would be most beneficial for end users as well as other key stakeholder groups along the value chain.

Released: May 2010

To download please login or register as a new user ADL_Untying_the_Gordian_Knot.pdf (.PDF, 1.27 MB)

Space for Creativity

Innovative Solutions in Central and Eastern European Telecommunications

The Central and Eastern European region (CEE) is a mosaic of 21 countries at various stages of development. While looking for solutions that best fit the local conditions, operators have often chosen previously untested, innovative solutions, and deployed new technologies earlier and faster than their Western counterparts. This bold approach has driven the growth in the broadband market, contributed to the hegemony of mobile telecommunications, and has effaced the line between telecom companies and TV operators. This white paper provides insights into the primary telecommunications trends in the region, specific examples of solutions in individual countries and take-away lessons that current or new operators can employ in the CEE region or elsewhere.

If you are interested in the full report, please contact Dr. Karim Taga or Jürgen Morath.

Released: March 2010

Cost Reduction in the Telecom Industry

Why operators need to act now to escape from the low-profit spiral

The telecoms industry in Europe and the US is at risk of becoming a low profit business. If the current trend cannot be reversed, industry margins are at risk of dropping from the current figure of 35 - 40% to 15% within 5 years. Cost management has to become an inherent core competence for wireless and wireline operators. Significant cost reductions are only possible with substantial changes in the business/operating model. New pressures will mean a change in mindset and the ability to ‘think outside the box’. Arthur D. Little has successfully managed this process with many operators.

Released: March 2010

To download please login or register as a new user ADL_Cost_Reduction_Telecom_Industry.pdf (.PDF, 837 kB)

Open Standards for IPTV Set-Top Boxes

What an Open Standard Could Do for the Success of IPTV

The global IPTV industry has experienced impressive growth, but penetration levels are still modest. Set-top boxes represent a not insignificant part of the total costs of providing such services to the end consumer.

To spur further development and to avoid sub-optimization based on multiple proprietary systems, a common standard will be increasingly important. Any such standard needs to be interoperable, affordable and innovation-friendly.

Since no single proprietary standard for IPTV STBs is likely to emerge, influential players should cooperate to establish a widely supported open standard. A common open standard may represent the best route forward, but does not in itself guarantee such qualities. Clear rules and procedures are needed to ensure robust competition and a win-win environment for all principal stakeholder groups.

Such a development will likely aid the prospects of the entire ecosystem, contributing to the growth and overall success of IPTV.

Released: December 2009

To download please login or register as a new user ADL_Open_standards.pdf (.PDF, 442 kB)

Future of Television

The End of TV as We Know It?

The future of TV will be defined by the enrichment of linear TV with interactive, on-demand services, a mash-up of professional and user-generated content, an increasing availability of TV on multiple devices and 3-screen access. Successful business models will be based on a hybrid model, i. e. a combination of free services to attract users to the respective platform and paid services. Upselling opportunities will depend both on the reach and ease of use of the platform as well as the quality of the content. While short-form user-generated was enough to grow for first movers in the middle of the 2000s, this content won’t be enough to compete with the increasing online offer of commercial broadcasters. Relevant content - and this might be Hollywood studio productions as well as niche specialties from independent studios - will provide reach and stickiness which are the ultimate enablers for upselling and the placement of advertising.

Those players which provide a carefully balanced content portfolio, ensure a high reach with an easy to use platform, add relevant additional services and focus on a hybrid business model will be at a competitive advantage and dominate the market in the future.

If you are interested in the full report, please contact Jürgen Morath or Dr. Karim Taga.

Released: November 2009

Telecom Operators in a Carbon Constrained World

Findings of an Arthur D. Little Survey in the Middle East and North Africa

As the world awaits a global carbon reduction commitment, Middle Eastern and North African (MENA) telecoms operators must do more to ensure that energy and carbon management positively affect their future growth, according to a new report by Arthur D. Little and Dubai Internet City.

Released: November 2009

To download please login or register as a new user ADL_Telecom_Operators_in_a_Carbon_Constrained_World.pdf (.PDF, 1.33 MB)

Global M-Payment Report Update – 2009

M-payments surging ahead: distinct opportunities in developed and emerging markets

In the last five years, markets with mobile payment offers have matured with a variety of players entering the industry value chain and new services being launched. Initially, there was a race to enter the market and a strong rivalry between different technological propositions that would facilitate mobile transaction channels. Today, we observe that, in many national markets, only one or two dominant mobile payment platforms have prevailed, and key issues now being addressed include cross border interoperability and standardization.

Despite the financial crisis, Arthur D. Little expects m-payments to grow globally at 68% p.a. and to reach a transaction volume of almost USD 250 billion by 2012, while there will be distinct opportunites in developed and emerging markets. Arthur D. Little’s new global m-payment report provides insights into the current stages of the m-payment market development in different countries and regions, and draws conclusions for relevant value chain players.

If you are interested in the full report, please contact Dr. Karim Taga or Gregory Oswald

Released: April 2009

To download please login or register as a new user ADL_Global_M_Payment_Report_Update_2009_Executive_Summary.pdf (.PDF, 1.01 MB)

Online Gambling: All In?

How the Opening of the Online Gambling Market Across Europe Can Benefit Media and Telecom Companies

The online gambling market is progressively opening throughout Europe, with annual revenue forecast to reach €8 billion within three years. Many telecom operators and media companies looking for new revenue opportunities have a card to play, thanks to their privileged access to customers. However, these players need to carefully elaborate an entry strategy leveraging their core capabilities and protecting their brand image.

Released: April 2009

To download please login or register as a new user ADL_OG_01.pdf (.PDF, 445 kB)