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In today’s ever-connected world, the telecom sector continues to play a critical role in the growth of multiple industries. However, the telecom sector itself is subject to the disruptions caused by technological advancements. From ever-increasing use of smart phones to the rise of Big Data and analytics, there are a number of factors that pose a diverse range of risks, challenges, and opportunities to telecommunication companies.

Over the past decade, telecom operators have observed a major shift in service consumption trends and customer behavior. Voice usage has declined by 50 percent between 2005 and 2012. On the other hand, media and video accounted for 50 percent of traffic in 2015, up from 10 percent in 2010[1].

To gauge customer behavior and modify their offerings accordingly, a large number of telecom operators are relying on data and analytics. They are using these technologies to gather and analyze information regarding usage patterns, download histories, and content preferences to offer an improved experience to their customers.

Although the telecommunication sector has performed better than many other industries in times of economic uncertainty, telecom operators continue to face immense cost pressures resulting from shrinking profit margins. To cope with the challenge, leading telecom operators are using or have plans to use automation and machine learning to make their manufacturing processes more efficient.

Additionally, in order to gain an edge over their competitors and seize a larger market share, telecom companies are leveraging the potential of disruptive technologies to improve interactions with customers.

In an attempt to leverage the scalability and accessibility benefits of cloud computing, many telecom operators have moved toward software defined networks based on the cloud. While the transition offers unparalleled advantages, it also translates into the fact that telecom companies can no longer rely on wire fencing or other straightforward security measures to protect their information assets. Instead, they need to invest in new and improved security technologies, more robust networks, and real-time analytics in order to anticipate, mitigate, and manage both internal and external threats.

The challenge of effective integrity and compliance management is another major issue faced by the telecom sector. While the use of latest data analytics and disruption technologies offers unprecedented benefits to telecom operators, they need to embed the principles of effective compliance management into the fabric of their day-to-day business in order to mitigate the risk of non-compliance and avoid the consequences associated with it.

As a leading executive search firm, Allen Austin is uniquely positioned to meet the talent needs of global telecom operators. We have an in-depth understanding of the diverse range of challenges and risks faced by companies operating in an industry as dynamic as telecommunications. Using our deep industry knowledge and our extensive experience of providing executive search services, we help our clients from the telecom sector hire the most talented executives who can lead their company to success amidst uncertainty.

[1] Global Telecommunications Study: Navigating the Road to 2020, EY$FILE/ey-global-telecommunications-study-navigating-the-road-to-2020.pdf

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