Nikos Theodorou, partner and head of telecommunications at PwC Cyprus, on Thursday highlighted key strategies for telecommunications leaders to stay competitive amid rapid industry change.
“Digital connectivity is more important than ever, especially with the rollout of 5G networks,” Theodoulou said, referring to the latest PwC Global Telecommunications Industry Outlook report.
He pointed to 5G’s promise of ultra-fast internet speeds, low latency, and pervasive device connectivity that can seamlessly integrate smart cities, self-driving cars, and IoT devices.
“For telecommunications companies, investing in 5G is not just a good idea, it’s a necessity,” he added, noting that the investment will open up new opportunities and help meet the growing demand for high-speed internet.
It is also important to note that the lines between the communications, media and technology sectors are becoming increasingly blurred, he said.
“Telecom companies are leveraging advanced technologies to improve how they deliver content and engage with their audiences,” Theodoulou said, emphasizing the importance of technology in improving customer experience.
He explained that streaming platforms are a perfect example of this convergence, using algorithms to provide a personalized viewing experience.
Moreover, he said that for telcos to stay competitive, they need to adopt a technology-first approach, use data analytics and AI to provide customized services and diversify their offerings to customers.
On the topic of cybersecurity, Theodoulou noted a growing concern: “As more data flows through digital channels, the risk of cyber attacks also increases,” he said.
Protecting customer data and the integrity of the network is crucial for telecommunications companies, he said, adding that this means investing in strong encryption, continuous monitoring and proactive threat detection.
This not only keeps your assets safe, but also builds trust with your customers and partners, which is essential to maintaining a reliable communications network.
Theodolu also touched on the growing importance of Environmental, Social and Governance (ESG) considerations in the telecommunications sector.
“Consumers and investors are increasingly looking for companies that follow sustainable practices and ethical governance,” he said.
In response, telecommunications companies are taking steps to reduce their carbon footprint, use renewable energy, promote diversity and inclusion, etc. Embracing ESG principles not only enhances a company’s reputation, but also creates new opportunities for growth and innovation.
Additionally, Theodolu also explained the strategic role of mergers and acquisitions (M&A) in the telecommunications industry.
He noted that companies use M&A to add new technologies to their capabilities, expand their reach and achieve economies of scale.
But he noted that the success of these deals will depend on how well the two companies can integrate.
Telecommunications leaders must focus on aligning culture, streamlining operations and retaining top talent to ensure a smooth transition and value creation.
He also said strategic M&A can help telcos gain an advantage by acquiring new capabilities that drive innovation and growth.
Regarding workforce transformation, Theodoulou said, “The digital revolution is changing the workforce landscape and creating demand for new skills.”
Responding, he said telcos need to focus on attracting, developing and retaining talent to stay competitive.
Additionally, he stressed the importance of upskilling and reskilling employees, which is essential to equip them with the knowledge they need to navigate new technologies.
He also explained that fostering a culture of innovation and agility helps organizations adapt quickly to changes in the market.
“The communications industry is at the heart of a digital revolution driven by connectivity, media convergence and advances in cybersecurity,” Theodoulou said.
“To succeed in this dynamic environment, telecommunications leaders must embrace these trends and focus on sustainability, strategic M&A and workforce transformation,” he added.
“By remaining agile, innovative and customer-centric, telecommunications companies can unlock new opportunities, drive growth and shape the future of the digital economy,” Theodoulou concluded.
