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Key findings from BDO Telecommunications Risk Factor Survey

28 June 2017

Global telecommunications companies are under intense pressure to adapt in a rapidly changing market, which is feeling the impact from the dramatic and unexpected changes in the political, business, and economic environment over the past 12 months.

In BDO’s latest Global Telecommunications Risk Factor Survey, telecoms giants revealed their concern with regulatory constraints has almost doubled, from 42% to 80% in one year. This contrasts with the 2016 survey results, when currency fluctuations, interest rates, and liquidity were of most concern to telecoms executives.

Conducted annually by BDO’s Global Technology, Media & Telecommunications team since 2015, the survey measures the critical risks reported by leading telecoms companies around the globe.

For the Asia Pacific region, the five main risks that are keeping telecoms executives awake at night are:

  1. Fast arrival of new technologies
  2. Access to finance
  3. Currency fluctuation
  4. Interest rate fluctuations
  5. Liquidity and cash flow risks.

Natalie Milne, National Lead, TMT at BDO Australia said “The pace of change faced by the global telecoms sector has never been more intense. The average revenue per customer in the telecoms industry is falling and customer loyalty is decreasing as choice proliferates. Business customers - and particularly SMEs, once a captive market - are now also moving towards over-the-top (OTT) providers and new technologies.”

“We can see that telecoms’ growth prospects will depend on how successful they are in navigating the complex risk landscape ahead, and reshaping their businesses to take full advantage of future opportunities.”