BDO’s 2018 Telecommunications Risk Factor Survey: Is Telecom Companies’ Proactive Approach Paying Off?
While some risks seem diminishing, others still loom large. At the same time, dramatic changes in the political, business and economic environment means new risks are appearing the horizon, as the telecoms industry must adapt to rapidly changing market demands and the accelerating pace of technological innovation. The mix of short-term, unexpected risks and long-term pressures felt by the industry as a whole means that winners in the telecoms sector are those companies which proactively find ways of updating and expanding their value proposition and managing the risks facing the industry.
These are some of the conclusions of the 2018 BDO Telecommunications Risk Factor Survey. The report analyses risks identified by around sixty telecoms companies across the globe, covering key markets in the Americas, EMEA and Asia-Pacific regions.
The fourth edition of the survey also pinpoints and analyses recurring trends and on-going developments in the telecoms space. Many of which continue to present both new challenges and new opportunities.
Top Five Risks Identified
The 2017 edition of our survey highlighted business risks relating to digital transformation, regulatory burdens, growth of cyber warfare, macroeconomic and political volatility as well challenges relating to investment in infrastructure. These risks remain a concern for many telecoms in 2018.
However, the risk landscape is continually changing and evolving. In 2018, the most significant risks facing telecoms can be grouped under the following five headings:
- Exchange rate/foreign currency changes
- Increased competition
- The fast arrival of new technologies
- Access to finance
- Interest rate pressures