As new technology continues to reshape telecommunications, EY cautions telcos about industry risks in its latest report, Top 10 Risks in Telecommunications.
"AI, the Internet of Things (IoT), and 5G are reshaping ASEAN's telecommunications sector, driving efficiencies and unlocking new business models. At the same time, telcos in ASEAN must navigate unique regional challenges like digital readiness, regulatory fragmentation, infrastructure gaps and varying levels of cybersecurity maturity," Joongshik Wang, EY-Parthenon Asia-Pacific leader, also EY Asean Telecommunications, Media & Technology Sector Leader, said.
"As connectivity expands, so do cyber risks. It is critical for Asean telcos to balance innovation with strong security and compliance. Trusted AI systems will be key to safeguard complex and interconnected AI-driven telecommunications networks and IoT systems while maintaining consumer and enterprise trust," he continued.
Top 10 risks
The report revealed that telcos' top risk is underestimating changing privacy, security, and trust imperatives.
Inadequate talent, skills and culture management, ineffective transformation through new technologies, and poor management of the sustainability agenda follow closely.
Moreover, telcos are plagued by the inability to take advantage of new business models, inadequate network reliability and resilience, and ineffective engagement with external ecosystems.
Telcos should also manage their failure to mitigate value chain disruption, their inability to adapt to the changing regulatory and policy landscape, and their inadequate operating models to maximise value creation.
Risk mitigation
To ensure a secure and well-prepared future, EY recommends organisations to identify emerging threats affecting the ecosystem, focus on the impacts of people and technology transformation, and most importantly, ensure end-to-end risk management.
