Monetary fluctuations and the increase in competitors are the two main concerns of the Telcos sector worldwide. This is considered by 76% of the large multinationals in the Telecommunications sector according to the analysis of the first half of 2018 prepared by the BDO firm, after consulting the opinion of the representatives of 60 global telephony and internet operators.
A clear trend in this survey is that Telcos report lower risks than before. The general trend applies to especially financial and regulatory risks. One reason could be that the industry is taking an increasingly proactive approach to these risks and is also diversifying its commercial portfolios.
According to Paola Vacca, Director of Marketing and Clients of BDO in Colombia, “technology is definitely the main factor by which companies dedicated to the telecommunications and internet business are entering new markets. Without a doubt, today we can say that these companies are becoming 'unified communications companies', aimed at all aspects and types of communications. ”
This theory is based on the fact that, in this industry, the "combo" formed by mobile devices, landlines, internet and television continues to gain momentum. And the strategy seems to be stimulating older services with new services and solutions.
"Perhaps the accelerated pace of new technologies has forced Telcos, considered traditionally slow, to adapt their organizational and strategic configurations in order to mitigate the effect of such risks, whose outlook changes and evolves continuously," adds Vacca.
According to the findings of BDO, after consulting the opinion of the most important companies in this sector, the following are the most important risks that Telcos face and can be summarized in the following points:
1. EXCHANGE RATE / EXCHANGE CURRENCY
In 2018 the exchange markets continue under uncertainty, as happened in the complicated 2017. Factors such as Brexit, Trump, North Korea, regulatory agendas, trade pressures and imminent trade wars are some of the risks that influence Exchange rates
For Telcos, which are generally defined by a substantial cash flow, international clients participate in large Mergers and Acquisitions, and the impact of these fluctuations could be especially significant.
2. COMPETITION IN GROWTH
The telecommunications industry is going through a period of continuous consolidation, with regional and national competition to dominate the market. This increased competition is one of the risk factors identified in the BDO survey, as occurred in both 2016 and 2017.
3. QUICK ARRIVAL OF NEW TECHNOLOGIES
Because the pace of technology and innovation shows no signs of slowdown, the risks arising from new technologies will probably also continue to increase.
Services such as Skype, WhatsApp and Viber have taken over a good part of the telecommunications market. Most customers today would consider an offer of 'unlimited texts' as a bad joke. Changing customer demands are linked to the arrival of new solutions and technologies, which makes it imperative that telecommunications companies react to the risk they pose to existing services and revenue sources.
A clear trend in this survey is that Telcos report lower risks than before. The general trend applies to especially financial and regulatory risks. One reason could be that the industry is taking an increasingly proactive approach to these risks and is also diversifying its commercial portfolios.
According to Paola Vacca, Director of Marketing and Clients of BDO in Colombia, “technology is definitely the main factor by which companies dedicated to the telecommunications and internet business are entering new markets. Without a doubt, today we can say that these companies are becoming 'unified communications companies', aimed at all aspects and types of communications. ”
This theory is based on the fact that, in this industry, the "combo" formed by mobile devices, landlines, internet and television continues to gain momentum. And the strategy seems to be stimulating older services with new services and solutions.
"Perhaps the accelerated pace of new technologies has forced Telcos, considered traditionally slow, to adapt their organizational and strategic configurations in order to mitigate the effect of such risks, whose outlook changes and evolves continuously," adds Vacca.
According to the findings of BDO, after consulting the opinion of the most important companies in this sector, the following are the most important risks that Telcos face and can be summarized in the following points:
1. EXCHANGE RATE / EXCHANGE CURRENCY
In 2018 the exchange markets continue under uncertainty, as happened in the complicated 2017. Factors such as Brexit, Trump, North Korea, regulatory agendas, trade pressures and imminent trade wars are some of the risks that influence Exchange rates
For Telcos, which are generally defined by a substantial cash flow, international clients participate in large Mergers and Acquisitions, and the impact of these fluctuations could be especially significant.
2. COMPETITION IN GROWTH
The telecommunications industry is going through a period of continuous consolidation, with regional and national competition to dominate the market. This increased competition is one of the risk factors identified in the BDO survey, as occurred in both 2016 and 2017.
3. QUICK ARRIVAL OF NEW TECHNOLOGIES
Because the pace of technology and innovation shows no signs of slowdown, the risks arising from new technologies will probably also continue to increase.
Services such as Skype, WhatsApp and Viber have taken over a good part of the telecommunications market. Most customers today would consider an offer of 'unlimited texts' as a bad joke. Changing customer demands are linked to the arrival of new solutions and technologies, which makes it imperative that telecommunications companies react to the risk they pose to existing services and revenue sources.
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