TELECOM COMPANIES ON HIGH ALERT TO FUTURE RISKS
Anybody who has followed the fortunes of the telecoms sector in recent years will know that it is one of the most challenging markets to be in right now. Changes in consumer habits, the rapid advancement of new technologies and increased competition all pose a threat to the long-term future of traditional telecoms providers. Unless they are able to adapt their business model and find sustainable new sources of revenue, established providers will find themselves with little room to manoeuvre in a price-sensitive market, facing intense pressure on profitability.
The last 12 months have brought into play a series of unexpected macroeconomic and political shocks that have further intensified the pressures felt by leaders in the telecoms sector. From the UK voting to leave the European Union (EU) and the election of an unconventional and unpredictable president in the US, to high profile cyber and malware attacks and setbacks to global trade agreements such as the Trans-Pacific Partnership, the last year has been dominated by uncertainty and a slowing in the pace of globalisation.
A more risky environment – what worries telecoms companies
It should come as no surprise that the world’s leading telecoms companies say that the past year has been among the most challenging for their business. In our third ‘Telecoms Risk Factor Survey’, an analysis of the major risks cited by 60 of the world’s leading fixed line and mobile telecoms providers across 18 major markets, the levels of risk being reported are at their highest ever. Almost all of the risk factors we have been tracking have increased in intensity over the last three years, and half of the top 25 risks measured have increased by a factor of 10 percent or more.
Oct-Dec 2017 Issue