With the introduction of 5G and the growing need for increased connectivity globally, the telecommunications industry is set to expand this year. Technology will continue to develop and adapt as business models around the world shift to meet new market demands. As with any industry, there are always challenges to be overcome, and this year is no different for telecoms. Here’s a look at the top 6 risks facing the industry right now.
Risk 1: High cost of living
As the Business Standard reports: “Inflation increased significantly in the US in late 2021 and early 2022, reaching levels higher than at any time in the last 40 years.” But it’s not just the United States, countries around the world are preparing for a rise in living costs and a possible economic recession, all of which will have a major impact on industries across the board. For those in telecommunications, companies will likely reassess their existing systems and find ways to cut costs. While this is a risk, proactive telecom companies will see this as an opportunity to encourage system upgrades, with better technologies actually saving companies money in the long run.
Risk 2: Data theft
The expansion of telecommunications means that there will be much more data available, meaning much more risk associated with data theft. Regulations with regard to data privacy across the globe are becoming much more stringent, and we’re likely to see more countries prosecuting offenders as they seek to protect citizens’ right to privacy. With this a concern, we’ll see data management becoming a dominant trend to avoid the risks associated with cybercrimes. There will be improvements to data security, data storage, and sharing.
Risk 3: Sustainability goals
Environmental, social, and governance (ESG) goals aren’t just created internally, they’re now mandatory for ongoing operations in a number of countries. In 2022, 50 global telecom operators committed to achieving net zero by 2050 – a goal that should likely be on all telecom agendas right now. This is really a risk to companies that haven’t considered their sustainability goals, or put in place measures to begin achieving these. The pressure will also be coming from the customer base where more socially and environmentally conscious consumers will choose those companies that tick the right ESG boxes over their competitors.
Risk 4: Shifting work culture
After years of uncertainty and adjustments to the traditional working model, employees are now demanding more from their employers. They want to work in companies where they’re given more freedom of choice, the option to work remotely, and considerations for their overall health and well-being. This poses a risk to companies that remain steadfast in the traditional working model, and that are unwilling to adapt to the realistic demands and needs of the people. These companies will likely lose out on real talent, putting themselves at risk in 2023.
Risk 5: Lack of technological expertise
The technological advancements happening in the telecommunications space are vast, and that means investing in constant training to ensure the workforce is adequately skilled for what is to come. Without such investment, telecommunications companies will risk falling behind competitors with superior skills and market proficiency. Modern organisations aren’t simply looking for cutting-edge telecommunications, they want customised solutions that meet their unique requirements. Telecoms that aren’t providing this are likely to get left behind.
Risk 6: Infrastructure
Reliability is key to customer satisfaction and when network reliability fails, telecom companies are at risk. In 2023, infrastructure development will have to take precedence to ensure that the digital divide doesn’t increase, and that everyone can access reliable networks.
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