At the maiden edition of the telecommunication industry risk management conference on December 12, 2022, Executive Vice Chairman of The Nigerian Communications Commission (NCC), Umar Garba Danbatta, affirmed the commencement of plans to de-risk the telecommunication industry stating that minimization of regulatory risks is necessary for ensuring that there are no disruption of services and that consumers get the best services that are available globally. He added that the information and communication technologies sector is loaded with different business and technology risks.
These risks also include regulatory burden, cyber security and online fraud, access to foreign exchange and many more. The NCC has been ensuring that the telecoms industry is not greatly affected by these risks. A vital goal of the commission, as stated by the executive, is to enforce a competitive market for the communications services that will aid an impartial inclusion of all players, promotion of local content and innovative services to enhance facilitation of new investment, consumer satisfaction and job creation.
The conference focus on making the industry tackle challenges.
Danbatta, represented by Director of Policy, Competition and Economic Analysis Department, Yetunde Akinloye, added that the aforementioned programs and initiatives would be affected if appropriate steps for proper assessment of the challenges that are confronting the industry and proposition of solutions that will ensure sustenance of the digital economy ecosystem are not done. Although he asserted that there are ongoing plans to examine the many issues facing the country in implementing the National Digital Economy Policy and Strategy 2020-2030 to build a sustainable ICT sector in the country.
Telecommunication industry risk management conference focused on tabling of the increasing uncertainties in the global economic as well as the regulatory and operational risks in the aspects of new partnerships, increased data security regulations and transformation of business models, shifting market structures, regulatory and policy challenges, fast-changing mix of mounting CAPEX burdens and emergence of new disruption scenarios and many more; the conference aims at positioning the industry to tackle these issues which will be beneficial to the telecoms industry and to individual operations.
Effective risk management would enhance effective decision-making.
In a paper titled “X-raying telecommunication risk radar: the operators’ perspective”, written by Eniola Olugboyega, it was stated that taking a risk can either positively or negatively impact a business and that common losses from improper management of risk in the sector entail fines and litigation, loss of business opportunities, lack of customer satisfaction, product failure and many more. The author states that effective risk management would enhance effective decision-making, prevention of financial and reputational loss and solutions to potential threats.
In addition, the paper states that Telecommunication risks from the perspective of the operator include insecurity, foreign exchange risk, human resource risk, regulatory risk, data breach risk, rising CAPEX risk and inability to embrace new business models. It added that telecommunication companies that buy technology from abroad will definitely have to pay for transactions in foreign currency, hindering techniques that can assist in the mitigation of the FX risk which include forward market hedge and money market hedge.
Effective management of risks will help the industry achieve its goal.
Furthermore, although telecoms networks have been able to withstand higher usage during the pandemic, telecoms is still under pressure to foster improvement of network performance and coverage. Also, Head of Corporate Planning Strategy and Risk Management, Kelechi Nwankwo, stated that the aims of the industry will be achieved when there is effective management and identification of risks that can affect the industry. The multifaceted nature of these risks calls for thorough elimination of every risk factor through a cost-based analysis before adoption.
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NCC to commence de-risk of telecom industry – The commission is to ensure a competitive market for communications services. – Express your point of view.
Keeping the industry regulatory risks to a minimum is important for providing uninterrupted service and giving customers access to the greatest products and services in the world.
Giving the customer a good product and minimize risk in telecom industry giving out standard service for the people to enjoy
the beginning of efforts to de-risk the telecommunication business, with the statement that minimizing regulatory risks to the greatest extent possible is important in order to guarantee that there would be no disruptions in service.
I think it’s a good thing that the industry of information and communication technologies is fraught with a variety of various technological and business hazards.
de-risk of telecom industry will enforce a good market for the communications service to customers
Lots of abnormalities are going on in the telecommunication industry in the country which need proper attention by the right authority saddle with the regulation power because many people see them as 419 because of bad services and unnecessary charges the charge their customers.
It is essential to take steps to reduce regulatory risks in order to guarantee that there will be no disruptions in service and that customers will receive the best possible services.
The National Digital Economy Policy and Strategy aims to create a long-term, self-sufficient ICT industry in the country, however there are several obstacles that must be overcome first.
The purpose of the conference is to put the sector in a better position to address these concerns, which will be advantageous both to the telecoms industry as a whole and to individual businesses.
Companies in the telecommunications industry that acquire technology from other countries will unquestionably be required to make payments in the relevant foreign currency.
Because of the myriad ways in which these dangers can manifest themselves, it is imperative that, prior to adoption, a full evaluation of the costs associated with each risk factor be conducted.
It very necessary for the NCC to de-risk the telecoms industry otherwise many companies, cooperate bodies and individuals will be at great risk of loosing their finances, identity etc.
there are several business and technological dangers in the field of information and communication technologies. The weight of regulations, online fraud and cyber security, access to foreign exchange, and many more concerns are also included in this list.
Although telecoms networks were able to survive increased traffic during the epidemic, pressure is still on to promote network performance and coverage enhancement.
Since many businesses can do without using the telecoms facilities, it is imperative that every business runs in a secure environment. It is applaudable that NCC commence with de-risk the telecoms industry to ensure healthy competition.