
Three Major Challenges Faced by Telecom Providers
Many operators have recently launched multiyear digital transformation plans to provide a unique client experience, increase efficiency, and improve organizational agility.
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CIO Applications Europe | Wednesday, June 16, 2021

Many operators have recently launched multiyear digital transformation plans to provide a unique client experience, increase efficiency, and improve organizational agility.
FREMONT, CA: Despite the rise of the internet of things (IoT) and the growing adoption of the first wave of 5G, the telecom industry is at a crossroads and remains in a low-growth state. In reality, the reduction in mobile phone services is projected to continue in the near future, mainly offsetting revenue increases from 5G data services. Furthermore, IoT income contribution is currently minimal, as revenue per connection remains low, and the trend is expected to continue. This growth limits present telecommunication operators with difficult circumstances to overcome. Here are three challenges faced by telecom providers:
Regulatory and Compliance Risks
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As consumer concerns about the safety of their personal data on the internet grow, telcos confront an increasing problem in assuring customers that their data and personal information are safe and secure. Furthermore, regulators are refocusing their efforts on data privacy and protection, as evidenced by the General Data Protection Regulation (GDPR). This will need operators to put security and trust at the heart of consumer interactions, which they may accomplish in various ways, including incorporating "security by design" into their digital transformation strategy.
Failure to Scale Digitization Initiatives
Many operators have recently launched multiyear digital transformation plans to provide a unique client experience, increase efficiency, and improve organizational agility. However, research has revealed that these projects face significant challenges, including a load of legacy IT platforms and a scarcity of digital skills due to the preceding threat. Given the difficulties of incorporating newer innovations into an existing enterprise-wide change, new technology cycles may slow telecoms' progress.
Failure to Keep Up with the Growing Capex Burden
Many telcos deal with a new wave of network investment, ranging from 5G to low-power wide-area networks to gigabit fiber. Nonetheless, because many advanced technologies, like IoT-centric 5G use cases, are still in their infancy, the investment returns on this expenditure remain ambiguous. Furthermore, broadband is widely seen as a household utility, posing a serious challenge to fiber connectivity's premium cost. As a result, operators must make the best judgments possible when it comes to infrastructure switch-off, spin-off, and sharing, mainly as they deal with a growing portfolio of network assets.
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