The telecom industry has been the backbone of the digital economy around the globe and has also helped majorly during the COVID-19 pandemic. In countries such as India, where mobile tariffs have been very affordable compared to the tariffs in global markets, telcos have seen a huge rise in data consumption year after year. Now EY has recently released its updated annual report - 'Top 10 Risks in Telecommunications 2023'. At the top of this list is consumers being worried about rising broadband prices. The cost of living has gone up in many countries due to the weakening global economy. The priorities of the customers have changed over the last two years, and the EY report highlights that the telcos not understanding that is a big risk to the telecom industry. Before we go ahead with the report, let's just take a look at the top 10 risks that are highlighted by EY.
- Insufficient response to customers during the cost-of-living crisis
- Underestimating changing imperatives in security and trust
- Failure to improve workforce culture and ways of working
- Poor management of the sustainability agenda
- Inability to accelerate efficiencies through digitisation
- Failure to establish infrastructure resilience and reach
- Failure to take advantage of new business models
- Failure to maximise the value of infrastructure assets
- Ineffective engagement with external ecosystems
- Inability to adapt to changing regulatory landscape
According to the EY research, over 60% of households are worried about rising broadband subscription prices. Consumer spending is already under pressure, and over 45% believe that they are overpaying for content services. Earlier, at the top rank of this list, the highest risk was infrastructure resilience and reach.
Tom Loozen, EY Global Telecommunications Leader, said, "While connectivity represented a lifeline for many during the height of the COVID-19 pandemic, the landscape has changed. In today’s economic climate, consumers are hyper-focused on the value they’re getting from telecoms providers, and telcos ignore this shift at their peril. The threat is compounded by increasing pressure from regulators, with some demanding that telcos do more to offer consumers ‘social tariffs.’ In response, telcos must create clear, simple and secure propositions that re-assure and appeal to customers."
At the second rank of the list is security threat to the telcos, especially as 5G is being deployed across the world. EY's report highlights that 76% of the telcos reported a rise in cyber attacks YoY. Data is the new oil and security threat to consumers, and enterprise data has jumped from the third rank to the second in EY's list of 10 top risks that the telecom industry faces in 2023. According to the EY report, over 46% of consumers already believe that it is impossible for them to keep their personal data secure in the internet.