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Risk Mitigation: What it is and how to implement it?

Inside Telecom Staff

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Risk Mitigation

One of the major aspects that most businesses tend to put behind their backs is risk management and mitigation. It is a serious matter that cannot be ignored at any cost. Los Angeles IT consulting recommends being proactive about risk management and get started with risk mitigation so that any threat to the business can be dealt with and tackled accordingly.

Defining Risk Mitigation:

Before diving into the details of risk mitigation, it is important to define it. There is always a certain element and degree of uncertainty of something unplanned happening with anything you do in life. At times, these are pleasant surprises which end up in favor of the company. But what if they are not beneficial? Such threats are referred to as risks by the IT Support services Los Angeles.

Risk mitigation is nothing but a management strategy that helps reduce the impact of these risks as much as possible. Risk mitigation is an all rounder approach that is not only concerned with minimizing the consequences of the risk but also reducing the overall chances of an exposure to a risk.

Steps Involved In Risk Mitigation:

Risk mitigation is further divided into a couple of steps by managed IT services Los Angeles. The steps and a brief description are as follows:

1.    Risk Identification:

You can only prepare to be able to deal with risks, if you know the type of risks that the company is exposed to in the first place. The first step along the way deals with risk identification. What are the weaker areas of the company that can be manipulated? How many and what kinds of risks is the company exposed to? What is the description of these possible risks? What will be the source and the impact of these risks? These are some queries that are answered during this first phase.

2.    Risk Evaluation:

Now that you have a list of possible risks, it is time to evaluate them. The risk evaluation is further divided into two main categories. The evaluation on the basis of frequency of occurrence. This refers to the possibility of the occurrence of the risk. Is the risk a one time threat or may be a long term occurring? Answering this question is important so that the company can prepare for the risk accordingly.

The second category of risk evaluation is concerned with the impact of the risk. This deals with the risks being classified as having a high impact or a low impact. The risks with a comparatively bigger impact are then prioritized and the company strategizes to battle them accordingly.

3.    Risk Treatment:

The possible risks can be treated in four different ways depending on their likelihood of occurring and possible impact. These four ways are:

  • Accepting the risk.
  • Avoiding the risk.
  • Transferring the risk
  • Mitigating the risk.

A detailed risk evaluation and analysis than further helps take a decision accordingly. If the risk is not a major concern and has a lesser chance of occurring, it is accepted. If there are some measures that can help the company avoid the risk, those measures are taken. If avoiding and accepting are not possible, the company tries to shift the risk. This is known as risk transferring. And the last but not the least, if none of these strategies seem to work, the company has no choice but to endure the risk and later mitigate its impacts as much as possible.

Plan A Risk Mitigation Strategy:

Risk mitigation is a customized approach. This means that there is no fixed set of rules that can be handed out to help you with risk mitigation. According to the IT support in Los Angeles, each company is different and is exposed to a different set of risks.

Therefore, it is the company’s job to evaluate the possible threats for their business and come up with a risk mitigation strategy that suits their models. But it is important to mention that risk mitigation and planning is an important aspect that cannot be thrown behind the back. It is a blueprint that will help the company stay strong in face of any threat. If your company does not have a risk mitigation strategy already, it is best that you work on it and create one immediately.

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Telecoms

Huawei has lost the UK telecoms market

Inside Telecom Staff

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A week ago, Huawei had hoped to shine again in the UK telecom market. Unfortunately, this dream is deemed ever-more unrealistic. It is clear now that the United Kingdom is moving forward with its intent to remove Huawei from its core 5G network. 

Recently, Huawei Vice-President Victor Zhang commented on the UK decision over removing his company from the core 5G network by 2027, claiming that, “it is going to have a huge economic impact on the UK”, according to The Guardian. On November 25, 2020, a report entitled, “Spending review 2020” was presented to the parliament by the Chancellor of the Exchequer by Command of Her Majesty. The report pointed out that the UK is set to spend “£50 million next year, as part of a £250 million commitment to building a secure and resilient 5G network”. 

The UK government U-turn over Huawei has left the market with a duopoly- Nokia and Ericsson- that have won contracts from British telecom operators such as BT and Three. The UK reliance on limited equipment’s would affect the telecom market as it will push up prices due to a lack of competition. News from UK digital secretary Oliver Dowden – who is leading a task force to increase the number of suppliers – is set to come up before the end of the year, according to The World News.

The discussions on removing Huawei from UK’s core 5G network have been controversial. However, is it clear that the UK has taken a decisive decision, described as a “legislative backbone” to avoid the so-called high-risk equipment providers. Back to November 24, 2020, a new UK draft law was unveiled. According to The Financial Times, the law imposes £100,000 fines a day on telecoms that fail to remove Huawei from their core 5G networks. These penalties are set to enter into force starting in 2027. 

Talking about the law, UK Digital Secretary Oliver Dowden said that it “will give the UK one of the toughest telecoms security regimes in the world and allow us to take the action necessary to protect our networks,” according to Politico. Moreover, he added, “We are investing billions to roll out 5G and gigabit broadband across the country, but the benefits can only be realized if we have full confidence in the security and resilience of our networks,” according to the BBC.

“This decision is politically motivated and not based on a fair evaluation of the risks,” commented Victor Zhang according to the Financial Times. As their UK business opportunities dwindle, Huawei must work hard to secure other European telecom markets.

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Telecoms

Telecom operators and reducing customer churn

Inside Telecom Staff

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Telecom operators usually consider two main factors in their plan to maintain and increase their business revenue. The first factor is the act of acquisition where companies are more focused on acquiring new subscribers to use the service being offered by the telco. The second factor is the act of retention whereby the goal is to maintain the current users of the service for as long as possible. In terms of costs – in the majority of cases – acquiring a new user can cost up to 5 times more than retaining a current one. In parallel, a slight increase in the retention rate by 5% can lead to increasing profits by an average of 60%, according to a report by Bain & Company.

Churn rate introduction

According to the American Customer Satisfaction Index which measures the overall customer satisfaction and its determinants by sector, the report cites that the telecommunication sector is one of the top 10 with a score of 72.2. 

From the above insights, we can understand the importance of retention. The opposite of this is churn rate, which addresses users who are leaving a specific service. Customer churn is considered an essential factor for any innovative service that a telco intends to launch.  

How can telcos reduce customer churn? 

Reducing the churn rate for telcos is challenging and can vary from one service to another. Tapping into the user experience is key to reducing the rate. By using data collected on customer behaviors, telcos can tailor a service to match customer interests to ensure they deliver the best service and reduce the customer churn rate significantly.

A daily-life scenario 

Let’s consider a family of 5 who use data on a daily basis. In the morning, the mom may be looking for recipes and meal inspirations, which would enable a telco to customize content to match the needs of the user. In the afternoon (when school ends), telcos ascertain that the content being consumed is primarily by the kids in the family, hence, telcos can push relevant content which may peak a young person’s interest at this particular time of day. 

The way forward

The conclusion that can be made here is that telco services are in need of more real time decision making on the type of service/content offered to their subscribers, which amplifies the need for intelligent systems like AI, ML, etc. to be integrated seamlessly within their network.

Article Written by Mr. Hussein Taki, Business Development Director at Mondia Group.

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Telecoms

An introduction to eSIM technology

Inside Telecom Staff

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e-sim technology

eSIM or embedded SIM is a new terminology in the telecom world and a part of the SIM Card evolution making headway after the Nano-SIM, which was launched in 2012. The technology was released in 2016 with rollouts in the US and Europe. It was also introduced in Africa in the recent few months.

eSIM technology is embedded into the smartphone along with its own software and can only be activated remotely by telcos. This new feature will present new revenue opportunities and will allow subscribers to switch between telcos seamlessly, especially when traveling.

Nigerian Telcos e-SIM rollout and local regulations

MTN Nigeria launched a one-day trial in their HQ in Lagos for the e-SIM technology in partnership with Ericsson on July 15, 2020. However, the Nigerian Communication Commission “NCC” released a permission to MTN and 9mobile to conduct a one-year trial for 5,000 subscribers within the country while adhering to the SIM registration process being regulated by the NCC. “The trial is in line with the Commission’s forward-looking regulatory approach to ensure Nigeria’s telecoms ecosystem is in tandem with global best practices”, saidExecutive Vice Chairman of NCC, Prof. Umar Garba Danbatta.

The trial of the e-SIM in Nigeria – more specifically Lagos, the economic capital – has not been promising so far. Some relate this to the COVID-19 pandemic coupled with the low adoption rate of compatible smartphones in the country. However, MTN is still only a few months away from the trial launch date and have almost 8 months to complete this period with the hope of better results.

Market adoption of the e-SIM technology

According to a 2018  Statista report, smartphone ownership is increasing in sub-Saharan African countries, especially in South Africa (60%), Kenya (41%), and Nigeria (39%). Still, this is the first launch in West Africa.

In Q1 Vodacom launched the e-SIM technology in its South African operation which has been followed by MTN in the same market.

Safaricom Kenya published an Expression of Interest (EOI) on November 13, 2019, to acquire a partner to deploy the e-SIM technology with plans to launch in 2021.

Telcos are not considering this new technology as a priority for the time being, as companies in the African continent are aware that market penetration rates for smartphones with the ability to adopt the e-SIM feature are very minimal whilst normal feature phones still have the bigger portion of the market.


Article Written by Mr. Hussein Taki, Business Development Director at Mondia Group.

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