Telco’s role in navigating digital challenges

Digital connectivity has made the world more interconnected than before, and it has also further enabled individuals to learn, work, and thrive. Such connectivity is backed by the telecommunication industry, which holds the digital world together through the various services of providers.

This advancement in connectivity, however, brings along certain risks, which every telecommunication provider must be prepared to recognize and address.

Privacy and security

As data flows at a rapid pace, digital threat is constantly adjusting to technological advancements. As teleco companies collect and store increasing amounts of data, they encounter greater risks of data privacy and security.

However, tools like artificial intelligence (AI) and generative AI are seen to carry the potential to advance operational efficiencies and service offerings. And while potentials of AI are frequently discussed, it is essential to also focus on the potential disruptions it has on individuals, businesses, and various sectors.

To keep pace, telcos are strengthening cybersecurity measures within their operations. This entails establishing effective security measures with multi-layered defense strategy adhering to regulatory standards.

Skill gap and mismatch

The move towards digital transformation necessitates a workforce equipped with digital skills, such as cloud computing, cybersecurity, and data analytics. However, finding and retaining the right talent is a challenge that must be addressed. For telco companies, having skilled workers and professionals is essential for managing complex networks and developing new services.

According to an Ernst & Young (EY) study, factors that hinder organization transformation include poor internal collaboration and skills gap. EY also found that 85% of telco employees believe that human resources functions will need to adapt significantly, highlighting the need for transformation in talent management.

In response to the skill gap and mismatch, telco companies are revolving their employee proposition. Focusing on attracting younger talent with digital and software capabilities will help the sector establish a more robust and sustainable workforce.

Notably, EY also revealed that 73% of telco leaders are prioritizing talent attraction and retention within their people strategy. It also indicated a strong focus on reskilling (50%) and fostering collaboration (42%), which senior executives identifies as key priorities.

Network infrastructure and reliability

One crucial element in digital transformation is its ability to modernize infrastructure. This involves upgrading network equipment, servers, and other hardware to better manage data volumes and improve connectivity. A modern infrastructure is crucial for telco network transformation as it enables faster and reliable service delivery.

But even with persistent efforts to advance infrastructure, unreliable network services still loom in. For instance, according to EY, 25% of households globally continue to struggle with unreliable fixed broadband connectivity, with no year-on-year progress. Mobile data reliability is also declining, and the growing use of AI could be leading to increased uplink traffic, which adds more strain on network capacity.

A strong network design is important for stronger infrastructure and network reliability. To develop a more resilient infrastructure, several interventions are considered, such as assessing the current telco network’s ability; identifying risks, resiliency measures, and cost-saving opportunities; enhancing the network’s capacity; and developing backup and recovery plans.

Digital divide

According to CDO Trends, there are still about 2.6 billion people without access to internet connectivity and digital devices. In developed countries, only 27% are considered internet users, and as advanced mobile network technology continues to evolve, this digital divide is growing even wider.

Hence, telco companies are finding innovative ways to offer accessible and date-driven services, reaching underserved users and communities. They are leveraging cloud technology to open up new revenue possibilities and encourage partnership across industries. With seamless and integrated offerings, telcos can grant access to digital platforms, particularly in areas that lack digital resources; promote digital user adoption; expand their market reach; and champion digital inclusion. — Angela Kiara S. Brillantes