Despite the ongoing convergence with other industries and a slight revenue uplift through innovative technological transformations, the telecom sector is still stalled in a low-growth mode.
To overcome major roadblocks to growth, telecom companies are embracing emerging technologies with the aim to lay increased focus on efficiency, agility, and customer-centricity in their services. However, this may not be enough to sustain growth in the long run. Amidst the growing uncertainties in the market such as the dynamic mix of growing Capex burdens, changing market structures, and regulatory and policy reforms, it is vital for telecom companies to rely on a telecom industry risk assessment before the leap to digital transformation. Infiniti’s telecom industry risk assessment experts suggest that unless companies in the telecom industry put customers at the forefront, they will struggle to succeed. Here are some of the biggest telecom industry risks that we have identified.
Ineffective digital transformation and growth strategy
Our telecom industry risk assessment suggests that one of the biggest challenges faced by telecom operators is to generate growth from digital services. Developing innovative business models, seizing opportunities for inorganic growth, new service inclusions, and diversification through M&A and strategic alliances can help telecom sector companies to better capitalize on growth opportunities.
Rising Capex burden
Global telecom operators are undergoing a new wave of network investment. This ranges from 5G and low-power wide-area networks to gigabit fiber. However, the returns on this Capex is often uncertain because advanced technologies such as 5G are still in the early development stages and broadband as a utility tends to pose major threats to the premium pricing of fiber connectivity. In this scenario, making the right choices relating to infrastructure switch-off, spin-off, and sharing is increasingly important.
Changing regulatory framework
There is an increasing regulatory focus being given to aspects such as data protection. As a result, traditional burden on operators including wholesale pricing and interconnection are becoming more relaxed. On the flip side, other areas of regulations are in flux for telecom providers. Furthermore, government’s industrial policies are also creating new demands for companies in the telecom industry. Our telecom industry risk assessment experts are of the opinion that it is critical for operators to balance and navigate the changing policy landscape.
Inadequate workforce planning and design
Effective talent management is still not given a strategic priority in the telecom industry. Infiniti’s telecom industry risk assessment experts state that this could prove menacing for telecom industry players. Reshaping and reskilling the workforce capacity is important for telcos. To avoid such organizational silos, companies in the telecom industry must undertake a holistic approach to workforce design.
Lack of efficiency in portfolio management
Infiniti’s telecom industry risk assessment suggests that inadequate planning and management is one of the primary reasons why most telecom operators fail to achieve the synergies that they target to achieve from M&A agreements. As convergence and disruption remain to accelerate in the telecom industry, inorganic growth remains vital for companies in the sector. This calls for telecom providers to establish more flexible integration road maps and smarter management of their business portfolios.
How can Infiniti’s telecom industry risk assessment help?
The telecoms sector is currently at the heart of digital disruption and transformation. Given this current landscape, the key question that telecon industry companies need to address is whether they are embracing the right opportunities coming their way and focusing on the right risks that need to be overcome.
Our team of telecom industry experts can help you identify and prioritize your digital transformation and risk mitigation needs across:
- Customer experience and loyalty
- Service portfolio diversification
- Renewal of legacy systems and operations
- Regulatory and legal compliance requirements
In all of the above given strategies and more, Infiniti’s dedicated team of telecom industry analysts can help you develop the right long-term strategy and leverage the most out of digital disruption opportunities that come your way.