Telecommunications Risks

Telecommunication is one of the present day emerging markets and like any other industry, it too has its own risks operating with unstable changes and developments. Many operators admit that their decisions to enter telecommunications industry are because of the large economic gain. On the field of action, they become exposed to dirty factors in business, fraud, theft and not to mention varying weathers and calamities

Developing nations are harder to precipitate with more issues and conflicts to adhere. There are political struggles, ethical restrictions, torpid weathers, illiteracy, availability of pertinent technology and support from people and the government.

Lucky are those local companies who have already established its claims to in a certain country. Axiata companies operating in Indonesia, Singapore, Malaysia and Hong Kong has expressed the hurdles they have overcome in order to intercept and dominate the mentioned Asian countries. Their last move of purchasing Axis Capital Group, one of the top ten leading telecommunications company in Indonesia and integrating it to XL Axiata Indonesia has proved they are continuously maintaining their rank in the industry. Their standing remains unstable when two other large companies, Telkomsel, a government-based company and Indosat has prevailed the city of Jakarta.

Managing the risk would require reviewing business continuity, ensuring disaster preparedness and stabilizing connections and linkages with the government and other private entities. Failing to think about risk and being unprepared to possible economic, physical, physiological or mental issues locally or internationally can either directly or indirectly affect potential confidence and loss shareholder’s value.

In recent reviews, 2015 has had a lot of risk even on the remaining months of the year.

1. Failure to Realize New Roles and Evolving Industry Ecosystem

As today’s world is constantly changing and evolving, telecommunications operators need to think ahead of the game and perceive what is to come. Failure to do so would mean being left behind

2. Lack of Regulatory Certainty in the Market

It doesn’t help when the operator appears like a tide. As market conditions remains highly changing, it is important to take a spot and either maintains it or climb higher. The three major operators in Indonesia have been stealing each other’s spots but they remain the top three. This is the goal of many operators especially in a more competitive world.

3. Ignoring emerging Security and Privacy

The uncertainty and concern around data privacy continue to worsen as more and more people are getting smarter and smarter to intercept cloud information. Overlooking the responsibility to provide a more secure service can lead to complaints and loss of subscribers.