Thank you for Subscribing to Utilities Business Review Weekly Brief
Utilities Business Review | Saturday, May 27, 2023
Telcos are facing several challenges and high inflation that is increasing operational costs. Telcos face many risks, including rising customer living expenses, changing security demands, and shifting opinions about workplace culture.
Telecom operators worldwide should take solace from their collective resilience in recent geopolitical and economic instability. In the last two years, a mix of price rises, M&A agreements, and government involvement has helped share values in the global telecoms sector recover from the epidemic lows — albeit the recovery has been sluggish and uneven. Today, telcos are revising their strategies to navigate a volatile operating environment. The company is undertaking a growing number of digital transformation initiatives. They also focus on long-term viability, including efforts to promote staff diversity and inclusion (D&I) and recruit fresh talent.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
However, telcos must be sufficiently aware of the current and emerging risks to achieve these objectives. Amid a high inflationary climate, which raises operational expenses, telcos must also cope with various difficulties, ranging from consumers' cost-of-living demands to growing security standards to shifting perceptions of employee culture — the dangers being confronted are both urgent and broad.
Economic difficulties: The cost-of-living problem is prompting people to reconsider whether they receive good value from their telecom providers. According to studies, 45 percent of households say they overpay for content services, and 44 percent believe their broadband provider does not do enough to point them in the right direction. In addition, some regulators insist that telcos provide "social tariffs" to make their services more affordable.
Preventing breaches: Telcos are straining to keep up with the escalating cyber threats: 46 percent of customers feel that keeping their data secure when using the internet is impossible. In addition, 39 percent of telecom chief information security officers (CISOs) believe that strategic investments fail to adequately consider security. More encouragingly, more than half of CISOs believe the epidemic has allowed cybersecurity experts to boost their profile inside the firm. It is common for other business units, such as product development teams, to trust security functions; however, security functions themselves lack trust.
Streamlining workforce: Employers' and employees' perspectives on workplace culture are at odds: Employers are becoming more pessimistic about how the pandemic has impacted business culture due to staff attrition, whereas workers feel empowered by remote work and think the culture has improved since the health crisis started. According to surveys, 25 percent of TMT employers feel that everyone should report to work five days a week, whereas 91 percent of TMT employees desire to work remotely for two or more days per week. Telcos must pay attention to and act upon customer feedback.
Meeting requirements: The quality of telecoms' climate change disclosures has declined yearly, according to research, while reporting on environmental, social, and governance (ESG) measures, including e-waste management and renewable energy usage, needs to be revised. A net-zero strategy, transition plan, or decarbonization pathway is not disclosed by 39 percent of telecoms, which is also a problem. Customers' expectations are also changing quickly: according to 47 percent of major organizations, vendor use cases for 5G and IoT do not sufficiently meet their requirements for sustainability. Operators must step up their game to adjust to the shifting stakeholder expectations.
Need for simplicity: The need for telecoms to become more efficient and agile is increased by the inflationary pressures of today. However, studies reveal that complexity in various forms hinders their ability to transform through new technologies. Human considerations are also hampered progress, with operators noting the detrimental effects of remote working on cooperation as the main cultural obstacle to their transformation objectives.
More in News