The top 10 risks included in the 2024 report are:
- Underestimating changing imperatives in privacy, security and trust
- Insufficient response to customers during the cost-of-living crisis
- Inadequate talent and skills management
- Poor management of the sustainability agenda
- Failure to take advantage of new business models
- Inadequate network quality and value proposition
- Failure to improve workforce culture and ways of working
- Ineffective engagement with external ecosystems
- Inability to adapt to the changing regulatory landscape
- Failure to maximize value of infrastructure assets
Sixty-eight percent of telco respondents believe they are not doing enough to manage the unintended consequences of artificial intelligence (AI), and 74% say they need to do more to mitigate against "bad actors" who could use AI to support cyber attacks and other malicious activities.[1] At the same time, 53% of telcos believe the cost to their organization of cyber breaches will exceed US$3m in 2023, up from 40% in 2022.[2]
The influence of AI also sees regulation climb on the 2024 risk radar - from 10th to ninth position. The report highlights that question marks surround the nature of future AI legislation, creating uncertainties for telcos. These pressures are heightened by a divergence in emerging policies between countries regarding the balance between AI guidelines and planned legislation. In the EU specifically, this has triggered concerns that AI could stifle innovation and limit international competitiveness.[3]
Term Techasarin, Consulting Partner, and Technology, Media and Telecommunications Sector Leader, EY Thailand, says:
"For the telecom sector in Thailand, GenAI is already a dynamic driver for change. Telecom operators are using AI in various applications, such as customer experience, and they will have implemented AI in key areas, including operations and network improvement. In the meantime, they are taking into account for its responsible use of AI to prevent negative impacts, considering technology, people and ethics."
The drive to attract and retain talent
Insufficient talent and skills management is a new entrant to the Top 10, debuting in third position. Again, AI is an influencing factor. With new technology cycles in both GenAI and edge computing on the horizon, digital talent is increasingly in demand. In addition, a shortage of network engineers presents a more immediate challenge to the industry.[4]
This trend is compounded by financial pressures, which are threatening the future talent pipeline. More than half (55%) of telco employers have introduced hiring freezes - almost double that recorded across all sectors (28%). And 61% of telcos say talent retention is being hampered by salary and benefits cuts as part of a cost-reduction drive - well above the sector average (44%).[5]
Term says: "Similar to other Asean countries, Thai telco operators face greater challenges when it comes to recruiting skilled personnel due to a shortage of highly talented resources. The talent pool available is sought after across industries. Skilled tech workers can be attracted anywhere from telco to tech companies or financial services. Telcos can address the challenges by offering a career re-skill path and certification programs that can motivate existing employees to learn newer technologies. In addition, embracing diverse backgrounds and upskilling workforce can unlock hidden potential. A failure to address this gap could impair the ability of creating an innovation culture and lead to a slowdown in business growth."
Consumers want a better deal
Falling just one place to second position on the Top 10 shortlist, telcos' response to consumers during the cost-of-living crisis remains a pressing risk for 2024. While only 16% of consumers are actively reducing their spend on fixed and mobile connectivity, many are looking for better deals and advice - with 60% agreeing that the cost-of-living crisis has made them more likely to shop around for the best deals. Indeed, the proportion of households going to price comparison sites or friends and family for recommendations has climbed from 19% last year to 30% in 2023.[6]
[1] "EY CEO Outlook Pulse Survey," (telco respondents), Jul 2023.[2] "EY 2023 Global Cybersecurity Leadership Insights Study," (telco CISO respondents), Oct 2023.[3] "The Artificial Intelligence global regulatory landscape," EY, Sep 2023.[4] "Telecommunications Workforce: Additional Workers Will Be Needed to Deploy Broadband, but Concerns Exist About Availability," US Government Accountability Office, Dec 2022.[5] "EY 2023 Work Reimagined Survey," (telco respondents), Sep 2023.[6] EY decoding the digital home study, September 2023
Source: EY Thailand