Top 10 risks in telecoms: mitigating the threat
Top 10 risks in telecommunications revisited
Last year, we outlined a number of obstacles that operators must avoid to capitalize on new opportunities. It is imperative that operators develop specific responses to a range of threats.
In this report, we delve into the measures we believe operators can adopt to fend off the pressures facing their organizations and make the most of an expanding horizon of service possibilities.
Mitigating business risks: how are operators faring?
In our conversations with senior management, we found that operators are already taking steps to meet sector risks. Concerns around business model overhaul, disengagement from the customer mindset, and return on investment will remain leadership priorities.
Yet such risks are not diminishing – the nature of the challenge in each of these instances now becomes how best to accelerate existing moves and pursue bolder responses.
For instance, in the case of “Lack of confidence on return on investment”, network sharing is well established and operators can look to more dynamic forms of infrastructure rationalization such as RAN sharing.
Risks that have recently entered the Top 10 list, such as “Insufficient information to turn demand into value” or “Failure to define new business metrics”, remain areas where mitigation strategies are only just emerging. Here, the challenge is to formulate responses and make them leadership priorities.
It is imperative that operators develop specific responses to a range of threats.
Our assessment of operator responses to risks
The figure below highlights how operators are coping with the Top 10 risks.
We have evaluated risk mitigation strategies by assessing the maturity of current responses as well as how high they rank as leadership priorities.
We also consider whether these risks are likely to become more pronounced in 2013 in view of the success of existing mitigation strategies and external factors such as:
- Regulatory demands
- Customer needs
- Competitor actions
Operator mitigation strategy assessment
Reading across the three categories of mitigation strategy assessment, a number of conclusions can be drawn:
- Leading sector risks (No. 1, No. 2 and No. 3) are already being dealt with as a leadership priority through well-established strategies.
- Other risks represent more recent pain points. While responses in these areas are often nascent, management focus varies in intensity (No. 6 and No. 8).
- The prospect for risks increasing or decreasing in magnitude over the next twelve months varies substantially. We see regulatory threats (No. 5) decreasing, while risks emanating from a lack of business intelligence (No. 4) are seen increasing.