Financial risks are top risks faced by Asian telcos

23 Jul 2018
Daily News

Financial risks and increased competition are the top risk factors faced by operators in Asia-Pacific, according to a new report from accounting and consulting company BDO.

A survey of 60 global operators found that exchange rate volatility was the risk factor cited by the largest proportion of respondents globally (76%).

In Asia-Pacific 83% of operators reported facing risk from foreign currency fluctuations. This risk factor ranked equal first with difficulties finding access to finance and interest rate fluctuations, which were only the fourth and fifth largest risk factors globally.

BDO said Asia's higher rates of financial risk could be due to increased cross-border competition within the region.

Meanwhile 67% of APAC operators surveyed cited increased competition as a risk factor. Heightened competition was also the second biggest risk factor globally, cited by 76% of respondents.

BDO noted that this competition is not just coming from the telecoms sector, it is also coming from technology companies that are increasingly encroaching on operators' turf.

But while 69% of operators globally cite the fast arrival of new technologies as a major risk factor, only 50% of APAC respondents do, suggesting that Asian operators are better placed to withstand the arrival of disruptive technologies.

Notably, cybersecurity has fallen out of the top five risk factor, falling back to number seven after a 23% jump last year in the wake of the Petya ransomware attacks. Perceived risk from regulation and litigation also fell out of the top five to sixth place.

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