Together with Huawei, Uganda MTN Safeguards Enterprise Digital Transformation

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MTN, Uganda’s largest telecom operator, has partnered with Huawei to help address the key network security challenges faced by the country’s businesses in digital transformation.

The partnership allows MTN to offer Secure Access Service Edge (SASE) solutions based on network security convergence and unified cloud platform management.

Uganda’s internet penetration has grown rapidly in recent years, reaching 20 million users in 2023, with the government identifying digital transformation as a key driver for achieving middle-income status. In this context, network security has emerged as an important area of focus.

“The network security barrier has been stretched,” said Ibrahim Senyonga, General Manager for Enterprise Business at MTN Uganda. ” Given the rapid pace of migration to cloud, enterprise service data access needs have increased, local breakout becomes normal.”

Local businesses have struggled to defend against mounting security threats, a challenge compounded by a severe skills shortage. “Both basic skills and digital skills are easily Uganda’s greatest challenge in building an inclusive digital economy,” the United Nations Capital Development Fund said in a 2021 report.

Uganda is investing in digital upskilling, but businesses need immediate protection. As the country’s leading telecom provider, MTN was uniquely positioned to address this challenge.

“We had an innate advantage in providing network security services to our customers,” Senyonga said. However, MTN knew any solution needed to balance robust protection with simplicity for the region’s nascent digital economy.

The telecom giant selected Huawei’s SASE, which integrates networking and security functions into a single system, balancing simplicity with state-of-the-art protection.

“Through joint innovation with Huawei, SASE offers several key benefits,” said Senyonga. “It enhances security by protecting users and devices through a unified solution, simplifies management by integrating multiple tools into one system, and increases cost efficiency by reducing hardware and maintenance expenses.”

Implementation will begin across Uganda immediately, following a launch ceremony at the 2024 Ultra-Broadband Forum in Istanbul last month.

The partnership aligns with MTN’s broader strategy to expand beyond traditional connectivity offerings. The operator now offers services across five main areas: unified communications, IoT, managed network services, cloud and security.

Senyonga is confident about the market’s response to MTN’s network security solutions, and with good reason. McKinsey estimates the global cybersecurity market could reach $2 trillion, creating opportunities for telecom operators who can leverage their existing networks to provide protection services.

“MTN has evolved from being a ‘Telco’ to a ‘Techco,'” Senyonga said. “Huawei enables us to deliver faster, safer, easier-to-manage and more affordable network solutions, empowering enterprises to thrive.”

Looking ahead, MTN Uganda plans to expand into underserved markets and develop more localized security solutions. “We plan to expand our reach by building partnerships with key stakeholders, including government entities, to create an environment conducive to digital transformation,” he added.

Source: telecoms.com

Shadow AI is creeping its way into software development – more than half of developers admit to using unauthorized AI tools at work, and it’s putting companies at risk

Enterprises need to create smart AI usage policies that balance the benefits and risks

With software developers increasingly flocking to AI tools to support daily activities, new research suggests a concerning portion are using unauthorized solutions.

Findings from Harness’ State of Software Delivery Report show that more than half (52%) of developers don’t use IT-approved tools, raising significant compliance and intellectual property concerns.

“Perhaps the most alarming observation was around the use of company-approved coding tools – of lack thereof,” the report states.

“The unauthorized adoption of AI codegen tools creates significant shadow IT challenges that extend far beyond immediate security concerns.”

Shadow AI is a serious cause for concern for teams, the report added, with developers potentially exposing sensitive code snippets to third-party AI services without proper governance.

“Ultimately, they can’t track the origin of AI-generated code, nor can they ensure consistent security standards across teams,” Harness said.

Software developers aren’t the only ones flocking to shadow AI

The rise of shadow AI has become a recurring talking point over the last two years as enterprises globally flock to the various AI tools available on the market.

In its Chasing Shadows report, Software AG found 75% of knowledge workers are already using AI, with this figure set to rise to 90% in the near future, and more than 50% of this group use personal or non-company issued tools when doing so.

Another study by customer service platform Zendesk noted there has been as much as a 250% rise year on year in the use of unsanctioned AI tools in certain industries.

The financial services sector was found to be the worst affected by this phenomenon with a 250% spike year on year compared to 2023 levels, but the healthcare (230%) and manufacturing industries (233%) also exhibited very high levels of shadow AI use.

Developing robust AI usage policies will be integral to ensuring this growing reliance on unvetted AI tools does not expose your enterprise to unnecessary risks.

Harness’ report listed the critical gaps identified by software engineering leaders in their organization’s AI coding tool policies.

Three-fifths of engineering leaders said companies need policies prescribing the processes for assessing code for vulnerabilities or errors, with 58% stating they need to outline specific use cases where AI is safe or unsafe.

Bharat Mistry, field CTO at Trend Micro, told ITPro implementing the policies included in the Harness report were all wise, but highlighted the importance of training when trying to shape employee behaviour and foster responsible use of personal AI systems.

“I agree with the policies given above, however for me it begins with the human aspect. By investing in comprehensive training and awareness programs, businesses can empower their employees to use AI responsibly, identify and mitigate risks and contribute to the development of ethical and effective AI solutions,” he argued.

“This proactive approach not only enhances the organization’s AI capabilities but also builds a culture of trust and accountability around AI technologies.”

Speaking to ITPro, Steve Ponting, director of Software AG echoed Mistry’s comments, noting that training will be essential in mitigating the risks associated with employees using their own AI tools.

“Workers have been clear: they will use AI whether it’s sanctioned or not. This means that businesses could struggle to manage AI applications, leading to cyber-security risks, skills gaps, and inaccurate work.,” he explained.

“Businesses must have a plan in place to reduce risk, build skills and plan for AI’s inclusion in daily work. If people are determined to use their own AI, training is vital in this regard. Better training would make 46% of employees use AI more, but crucially, they would use it effectively and responsibly.”

By Solomon Klappholz
 Source: www.itpro.com

MobileMoney Ltd, ReFinD partner to expand financial services to vulnerable population through research

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The Retail Financial Distribution Research Initiative (ReFinD), a flagship research initiative of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, and MobileMoney LTD signed an agreement to conduct research on Mobile Money agent networks aimed at expanding financial inclusion among underserved and vulnerable communities.

Under this partnership, MobileMoney LTD will provide implementation support (through access to Mobile Money agents, insights etc.) to grantees under ReFinD. The partnership also includes:

  • Research on how to promote the entry of agents into the market space, which is key to market intermediation; and
  • Research to understand and eliminate economic and non-economic constraints faced by agents in the scaling of access to finance.

“This partnership perfectly aligns with ReFinD’s mission of understanding and improving financial service delivery to underserved communities. We are confident that our research model and findings will serve as a blueprint for similar studies across MTN’s African markets,” said Prof. Peter Quartey, Director of ISSER and Executive Director of ReFinD.

Shaibu Haruna, CEO of MobileMoney LTD, echoed the importance of the partnership in advancing financial inclusion for all Ghanaians.

“We look forward to working with ReFinD as a partner that is also committed to promoting financial inclusion and unlocking a world of financial possibilities for every Ghanaian,” he said.

Beyond the ReFinD project, MobileMoney LTD will collaborate with ISSER on relevant research initiatives aimed at expanding access to finance.

About MobileMoney LTD

MobileMoney LTD is a subsidiary of MTN Ghana responsible for Mobile Financial Services. Launched in 2009, MTN MoMo has over seventeen million registered subscribers. MobileMoney LTD offers a wide array of mobile financial services spanning payment solutions, remittance, Banktech, Insurtech, savings and loans to its customers all aimed at driving financial inclusion and economic empowermentFor further information, visit mtn.com.gh.

About The Retail Finance Distribution Research Initiative (ReFinD)

ReFinD is a sub-grants-awarding research initiative that aims to support interventions that will effectively expand the reach and efficiency of agent network operations through public policy and commercial solutions that can plausibly be scaled. Implemented by the Institute of Statistical, Social and Economic Research (ISSER), University of Ghana, the Initiative focuses on research based on LMICs in Sub-Saharan Africa, South Asia, and Southeast Asia. Website: www.refind-isser.ug.edu.gh

Source: www.citinewsroom.com

Author: Leticia Osei

Child-In-Tech Conference 2025: Inspiring the next generation of tech leaders

The Child-In-Tech Conference 2025, held on January 24th at the St Giles Center in East Airport, brought together over 500 young attendees to explore the world of technology and its potential.

The event, designed to inspire and educate children about technology, featured a diverse lineup of speakers, mentors, and exhibitors, with support from major sponsors like MTN and TapTap Send.

The conference kicked off with a welcome address from the CEO of Child-In-Tech, Akua Otubea Essah, who emphasized the significance of introducing children to technology at an early age. “We believe that by exposing children to technology, we can inspire them to become the next generation of tech leaders and innovators,” she said.

Guest speaker Dr. Rose-Mary Owusuaa Gyening delivered a keynote on the societal impact of technology. While she acknowledged the many benefits, such as improved access to education and healthcare, she also cautioned the children about potential risks, including cyberbullying and online harassment. “As you explore the world of technology, remember to always be responsible and respectful online,” Dr. Rose-Mary advised.

An interactive session with Mr. Darryl Mawutor Abraham, Growth Director-Africa at TapTap Send, followed. Mr. Abraham demonstrated the application of artificial intelligence (AI) across various industries, including healthcare, finance, and transportation. He emphasized AI’s potential to address global challenges like climate change and poverty, stating, “AI is a powerful tool that can be used to make our lives better, but it’s up to us to use it responsibly.”

Representatives from MTN were also present, providing valuable insights into the company’s role in connecting millions across Ghana. They highlighted how MTN’s technological innovations and customer service shape the telecommunications landscape. “At MTN, we’re committed to using technology to make a positive impact on people’s lives,” they remarked.

Renowned journalist Bernard Avle offered a motivational speech, urging the children to stay committed to their dreams. “Believe in yourself, stay focused, and always be willing to learn,” Mr. Avle said, encouraging the young attendees to pursue their passions with dedication.

The event also featured an exhibit space where 10 organizations showcased the latest technology trends and innovations. Children were given the chance to engage with the exhibits, ask questions, and discover new tech concepts. The event was described as a resounding success, not only in educating the children but in demonstrating the power of collaboration between the community, mentors, and the sponsors.

“I never knew technology could be so cool! I want to learn more about coding and robotics,” said a 12-year-old boy attending the event, reflecting the enthusiasm of the young audience. A 10-year-old girl shared her inspiration, saying, “I was inspired by the women who spoke at the conference. They showed me that girls can be tech leaders too.”

The conference was made possible through the support of sponsors like MTN and TapTap Send. Mr. Richard Densu of MTN Ghana remarked, “We are proud to support initiatives that promote technology education and innovation among young people. We believe that technology has the power to transform lives and communities, and we are committed to helping Ghana develop a vibrant tech ecosystem.”

The event concluded with a call to action, urging the children to continue exploring and learning about technology. Organizers also announced future conferences, including “Chocolate-With/Tech,” “Boys-Tech-World,” “Girls-Tech-World,” and technology quiz sessions, all aimed at further engaging young minds in the world of tech.

Reflecting on the significance of the event, Mr. Darryl Abraham expressed optimism for the future, saying, “The future of technology in Ghana is bright, and it’s up to us to nurture and support the next generation of tech leaders. Events like the Child-In-Tech Conference are crucial in inspiring and educating our young people about the possibilities of technology.”

Source: Graphic online

Meta is building Oakley smart glasses for athletes: Report

Meta

Meta’s Reality Labs is expanding its lineup of AI smart glasses with a new pair of Oakley-branded spectacles targeted at athletes, according to Bloomberg’s Mark Gurman.

Bloomberg reports the new smart glasses, with which Meta seeks to capitalize on the Ray-Ban Meta’s success, will be based on Oakley’s Sphaera glasses and will shift the camera toward the center of the glasses frame.

It seems Meta wants to tap into Oakley’s cult-like following among various athlete groups, including cyclists, runners, and rowers. This could help popularize smart glasses with more mainstream consumers.

Beyond new glasses, Meta is also exploring a wide range of AI-powered devices, including camera-equipped earbuds and a smart watch. The company is also developing a $1,000 pair of smart glasses based on the Ray-Ban Meta’s design, with an AR display projected on the bottom portion of the right lens, according to the report.

Source: techcrunch

India court halts WhatsApp data-sharing ban

Meta

An Indian appeals court temporarily suspended a ruling by the country’s antitrust regulator to impose a five-year ban on data sharing between WhatsApp and parent Meta Platforms’ other services, Reuters reported.

The National Company Law Appellate Tribunal ordered a hold on the ban while it reviews a challenge by Meta Platforms and WhatsApp to the Competition Commission of India’s (CCI) ruling, arguing the ban could lead to a collapse of messaging platform’s business model, the news agency wrote.

In line with the antitrust order, WhatsApp is still required to add an opt-out option for sharing data, which it removed when it updated its terms of service and privacy policy in 2021, Reuters stated.

The tribunal also suspended a penalty imposed on WhatsApp on condition it pays half the fine, Bloomberg reported.

In challenging the ban, Meta Platforms argued WhatsApp could undo or suspend some features in India, limiting personalised advertisements for users on Facebook and Instagram.

The CCI fined Meta Platforms INR2.1 billion ($24.3 million) for abusing its dominant position in messaging and advertising, and issued the data-sharing ban.

Source: Mobile World Live

(Africa) Safaricom seeks approval for Kenya’s first telco-owned submarine cable amid rising competition

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Kenyan telco giant Safaricom has applied to the Communications Authority of Kenya (CA) for rights to land a submarine cable, per Business Daily. If granted, this would allow the company to construct and operate the country’s first undersea Internet cable owned by a telecommunications firm. 

The move aims to strengthen Safaricom’s ability to provide high-speed Internet, improve connectivity, and reduce dependence on third-party cable operators. It also underscores Safaricom’s commitment to meeting Kenya’s rising demand for reliable, high-speed Internet, while also ensuring it stays ahead in an increasingly digital world.

Currently, Safaricom relies on providers such as SEACOM, the East African Submarine System (EASSy), the East African Marine System (TEAMS), and Telkom Kenya for its international bandwidth. Of these, Telkom Kenya holds landing rights for five submarine cables connected to the country, including SEACOM.

This move by Safaricom comes when the region is grappling with increasing network vulnerabilities. In May 2024, two major undersea cables — EASSy and SEACOM — suffered outages, leading to widespread Internet disruptions across East Africa, including Kenya and Tanzania.These incidents forced Safaricom to acquire additional bandwidth from other providers, spurring its decision to invest in its infrastructure.

Submarine cable landing rights in Kenya are regulated by the CA, with companies required to obtain a “Submarine Cable Landing Rights Licence” to operate such infrastructure. Safaricom’s application signals its ambition to achieve greater control over its international bandwidth supply.

Safaricom’s push for independence reflects growing competition from satellite Internet providers, particularly Elon Musk’s Starlink. Since Starlink’s entry into Kenya in July 2023, the satellite provider has disrupted the market by offering high-speed Internet services, especially in remote areas. This has led to a rapid increase in satellite Internet subscriptions and challenged the dominance of traditional providers like Safaricom, which controls over 37% of the fixed Internet market.

READ MORE  Kenya’s telecom regulator to hike satellite ISP licensing fees by over 800%

In response, Safaricom has expressed concerns about Starlink’s operations, arguing for regulatory measures to ensure partnerships between satellite providers and local mobile network operators.

Source: www.techpoint.africa

Victoria Fakiya

Vodafone Spain bags mining private 5G deal

Vodafone Spain and mining player Geoalcali unveiled a plan to install a private 5G network in one of the latter’s facilities, infrastructure set to connect people and machinery in the most remote underground areas.

The mine is to be located in Navarra, Spain, with workers set to benefit from voice and data connectivity through smartphones, and access to push-to-talk systems in the most demanding locations.

Vodafone Spain indicated installing nodes “even in the deepest” parts of the site would significantly improve “communication and access to data in real time”.

The network includes private 4G and 5G access and will form part of a wider digitalisation project of the working environment in and around the mine. This includes video surveillance systems, Wi-Fi connectivity, digital twins and site monitoring with drones.

Vodafone Spain positioned the deployment as a “breakthrough in the mining sector”, adding it “opens the door to replicating this solution in other industries looking to take advantage of the benefits of private 5G connectivity”.

Mining has proved a popular area for private mobile network projects and deployments given the remote nature of the sites and need for reliable communication for worker safety applications within the often dangerous environment.

Source: Mobile World Live

AT announces major expansion and innovations to enhance customer experience in 2025

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As the year 2025 unfolds, AT is excited to announce the next phase of its journey towards innovation and growth. The company’s commitment to providing valuable experiences is driven by the continued support and trust of its customers.

AT has outlined several initiatives aimed at enhancing customer experience and driving technological advancement. To better serve its customers, AT is expanding its footprint by opening additional customer service centers across the country.

This strategic expansion will make AT’s services more accessible, bringing the company closer to its customers, no matter where they are. In addition to this, AT will be introducing innovative products and services designed to keep customers at the forefront of a rapidly evolving digital landscape.

These advancements promise more seamless convenience and engagement, transforming how users connect with technology. Recognising the crucial role of small-scale businesses in the economy, AT is broadening its Business-to-Business services to support their growth.

Alongside existing offers, the company is developing tailored solutions to empower these enterprises, equipping them with the necessary tools to thrive in a competitive market. To ensure a seamless digital experience, AT is making substantial investments in its network infrastructure.

The goal is to provide faster and more reliable data and call networks, enabling customers to stay connected effortlessly, whether for professional pursuits, leisure, or keeping in touch with loved ones. AT’s mobile money service, ATMoney, is set to unveil new features designed to offer greater flexibility and enhanced benefits.

These forthcoming innovations will streamline financial management, making it more straightforward and rewarding, in line with the convenience and security customers have come to expect from the service. Through its corporate social responsibility initiative, AT Touching Lives, the company continues to support and raise awareness about Sickle Cell disease.

Over the past four years, AT has collaborated with esteemed institutions such as the National Blood Service of Ghana, the International Sickle Cell Centre Ghana (ISCC Ghana), and the 37 Pediatric Sickle Cell Clinic.

Efforts have included creating educational content, donating essential medical equipment, providing financial support, and organizing blood donation drives to contribute to the education, prevention, management, and eventual cure of Sickle Cell disease in Ghana and beyond. The company eagerly anticipates building more partnerships to magnify its impact in 2025.

AT remains focused on enhancing customer experience, delivering value, and staying at the forefront of innovation. The company expresses gratitude to its customers for their continued support and looks forward to a year of success, greater connection, and growth. AT, Life Is Simple.

(Source: www.citinewsroom.com)

Top 10 risks for telecommunications in 2025

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As telecommunications operators continue to manage an expanding array of threats, here’s the EY analysis of the 10 biggest risks they face in 2025.


In brief

  • Trust and talent issues lead the sector risk landscape, as security threats escalate with responsible AI and digital skills also in focus.
  • Ineffective technology transformation and value chain disruption are new entries, reflecting changing internal and external pressures.
  • As we enter 2025, telcos must take a holistic, ecosystem-wide view of risks — and zero in on the role of people and tech in their transformation efforts.


The global telecoms industry’s comparatively strong share price performance in the past year suggests it has weathered recent challenges, such as the cost-of-living crisis, relatively well. However, the industry faces significant existing and emerging threats — and every telco needs to recognize and address these.

As in previous years, telcos’ risks can be broadly categorized into four types: compliance, operational, strategic and financial. But much has changed within this overarching framework over the past 12 months. For example, the industry’s risk profile has shifted toward the need to transform and drive greater internal efficiency and agility through actions focused both on the workforce and technology stack. At the same time, security challenges continue to evolve in new directions at pace.

Also on the rise are risks around disruptive competition from outside the sector, including from hyperscalers, along with looming threats on the horizon impacting the industry’s value chains. And while artificial intelligence (AI) presents clear opportunities for telcos, it also raises a number of threats that have knock-on effects on several of the specific risks in the top 10.

Risk 1: Underestimating changing imperatives in privacy, security and trust
Generative AI (GenAI) is already having a positive impact among connectivity providers, notably in customer support functions. However, EY research finds that two-thirds of customers want better explanations about how AI is being used, while four in 10 employees (via ey.com US) are not confident that they know how to use AI responsibly. Added to this, security threats are evolving at pace: AI is making cyberattacks smarter while 57% of telcos are concerned about security attacks impacting physical assets at a time when sabotage affecting subsea internet cables is on the rise. Looking ahead, telcos’ trust credentials are under unprecedented pressure.

(Source: EY Decoding the Digital Home, October 2024)

Risk 2: Inadequate talent and skills and culture management
The EY 2024 Telco of Tomorrow found that senior industry executives’ people priorities are headed by talent, skills and culture. And when asked to rank the inhibitors of transformation in their organizations, they put poor internal collaboration and missing skills second and third respectively, behind lack of budget. The sector’s relatively high degree of remote working — as highlighted by the EY Work Reimagined Survey — poses particular challenges to collaboration and upskilling. Meanwhile, 85% of telco employees believe HR functions will require major or moderate change over the next five years, underlining the transformation that is required to support better talent management.

Risk 3: Ineffective transformation through new technologies
A range of emerging technologies will propel transformation of telcos in the future: The EY Telco of Tomorrow research shows that process automation and software-based networks are currently seen as the most important, but that AI is expected to dominate in years to come. Here there are strategic choices to make, from use case prioritization through to the selection of open source of proprietary large language models. Crucially, telcos also face important decisions on what performance measures to use. While confidence in AI’s transformative potential is high, the right KPIs will be vital in assessing the progress of transformation programs.

Risk 4: Poor management of the sustainability agenda
Effective reporting of sustainability progress is essential for telcos. Yet according to the 2024 EY Climate Action Disclosure Barometer, the quality of climate disclosures by telcos and tech companies stands at just 55%, well below the 94% rating for disclosure coverage. And while climate change is likely to be a material risk for many companies in the sector, only 36% reference climate-related matters in their financial statements, typically via qualitative rather than quantitative references. Equally worrying, just 51% of telecoms and technology companies currently disclose their plans for transitioning to renewable energy sources.

Risk 5: Inability to take advantage of new business models
Telcos are under pressure to seek new routes to revenue growth, given that recent subscription price hikes may not be sustainable. Emerging network-as-a-service business models are in focus, with 92% of telco CEOs viewing them as a critical growth driver in the future, while many operators are doubling down on network application programming interfaces – a market predicted to reach US$6.7b by 2028.1 However, realizing these ambitions will be made harder by telcos’ heavy reliance on intermediaries. Similarly, their ability to increase revenues from B2B customers may be hampered by factors like “co-opetition” and service delivery challenges.

Risk 6: Inadequate network reliability and resilience
Despite ongoing infrastructure upgrades, EY research shows that more than one in four households often suffer from unreliable fixed broadband connectivity, with no improvement year-on-year. Mobile data reliability is in decline, both in perceived reliability and tested throughput levels, while more sophisticated 5G standalone (SA) networks offering better performance levels have been slow to materialize. Against this challenging backdrop, AI presents both opportunities and risks around network quality — helping operators manage their networks better, but also potentially squeezing capacity by increasing uplink traffic.

Risk 7: Ineffective engagement with external ecosystems
Changing supplier ecosystems offer telcos new routes to growth and efficiency. The shift to open radio access networks (Open RAN) promises several positive impacts for operators, ranging from a greater choice of vendors to improved network capabilities. However, only 17% of telcos cite Open RAN as a critical element of their network strategy, with many first-phase deployments still relying on a single vendor. Partner ecosystems also require focus: the EY Reimagining Industry Futures Survey 2024 (pdf) finds that enterprise customers prefer service providers that provide capabilities through partners. Robust ecosystem relationships will be mission-critical for telcos going forward.

Risk 8: Failure to mitigate value chain disruption
Telcos are expecting their competitive landscape to broaden and evolve over the coming years, signalling new challenges. While they currently regard other telcos and mobile virtual network operators (MVNOs) as being among their top three competitive threats, they expect hyperscale cloud providers to dominate the competitive landscape in five years’ time, with satellite companies also posing a growing challenge. As telcos face these shifting pressures, they’re lagging behind others in the ecosystem on R&D spending, potentially limiting their long-term ability to innovate. Industry research shows telcos spend only 1% of their revenue on R&D — well behind network equipment providers at 17%.3.

Risk 9: Inability to adapt to the changing regulatory and policy landscape
The EY Telco of Tomorrow Survey finds that industry leaders expect to face a widening range of regulatory and policy issues, with a growing impact from emerging domains like AI regulation and digital markets. Further challenges include network supplier regulation, which is both in flux and inconsistent between countries. Alongside new areas of regulation, established regulatory domains are evolving in new ways. Spectrum sharing rules are being proposed and updated in various countries while regulations on pricing are expanding in scope, driven by consumer protection policies, with pricing controls even featuring as part of merger remedies.

Risk 10: Inadequate operating models to maximize value creation
Asset-light strategies are continuing to gain ground, with operators in multiple regions carving out or spinning off tower, fiber and data center assets. EY research finds that 72% of telco CEOs believe that carve-outs and divestitures will increase in their region in the coming 12 months. Further out, 44% of telco leaders believe the industry will split into retail-focused “servcos” and wholesale-oriented “netcos” within the next five years. While asset-light M&A brings financial benefits, opportunities to reconfigure operating models are being overlooked: most executives believe that they should have done more with the remaining business during divestment than simply eliminate costs.

Actions for telecommunications operators to manage risk mitigation
We believe three overarching actions can help operators mitigate the risks we’ve highlighted.

  1. Identify emerging threats affecting the ecosystem
    As connectivity assumes an increasingly central role in digitization, telcos need to identify risks that are emerging outside their organization — whether in supply chains, the competitive landscape, or the policy and regulatory space. Identifying such risks requires ongoing proactive monitoring of the external environment. This is particularly true of the cybersecurity and policy areas, which are both evolving at pace.
  2. Focus on the impacts of people and technology transformation
    Telcos’ transformation horizons are adapting to new possibilities unlocked by frontier technologies, adoption of which is also being accelerated by rising stakeholder demands for efficiency and sustainability. But alongside the need for new tech, the requirement for re-skilling and fresh talent has never been higher. All of this means the transition to new technologies should be accompanied by a clear organizational purpose, robust risk protection and effective governance to maintain business resilience as transformation programs progress.
  3. Ensure end-to-end risk management: Telcos’ risk management approach should be holistic and programmatic, with a clear process for identifying, evaluating and managing risks across the organization. This involves executive risk owners working with cross-functional teams to track risks and assess their impacts, accompanied by regular reviews of risk containment plans and controls effectiveness. Above all, it’s vital to embed a risk culture throughout the business — one that can adapt and respond to changes in risks as they emerge and evolve.

Summary
As telecoms operators embark on 2025, they’re confronted by a risk universe that blends internal threats centered on the imperative for operational and workforce transformation, with external threats springing from shifts in the competitive, technology and regulatory landscapes. The keys to successful risk mitigation in such an environment? A forward-looking risk perspective that considers threats across the enterprise and its entire ecosystem — supported by a risk-oriented culture that enables rapid and effective responses.

Source: Cedric Foray & Adrian Baschnonga (EY Global)