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As well as supporting their employees, telcos must continue delivering critical infrastructure and services, especially during a crisis of this magnitude. Given the urgency, here three short-term actions to prioritize.
Telcos and Covid-19: Three steps to manage the crisis
As well as the authors listed above, this article was also co-authored by Alex Bhak, Ozan Bayulgen, and Frank Ford who are all also Partners at Bain & Company. Two of the authors of this article, Bain’s Herbert Blum and Frédéric Debruyne, spoke at TM Forum’s Digital Transformation World Series (DTWS). Debruyne moderated a panel which is available to watch now on-demand now as is Blum’s interview. Telcos have a vital role to play in helping communities respond to the Covid-19 pandemic. With the world turned upside down by the pandemic, telecommunications companies have faced one of the greatest challenges in their history. Like other organizations, they have a duty to, first and foremost, support and care for their employees. But telcos are also under enormous pressure to continue delivering infrastructure and services critical to everyone, especially during a crisis of this magnitude. Given the urgency, we recommend prioritizing three short-term actions to manage the crisis before turning attention to the plan for recovery.
With offices, schools and public places shutting to contain the spread of the virus, there’s a shift en masse to remote working and to video and teleconferencing. Network traffic in some countries has surged 70% or more during the outbreak (see Figure 1 below).
Telcos can ease this transition by taking several immediate steps. First, they can offer discounted or free voice, data and content services to customers. The menu could include enabling enterprise customers’ employees to call each other for free, allowing data overages and providing open access to applications and services, such as educational content and online learning platforms for students, teachers and parents. Next, telcos should be ready to help customers upgrade their services to cope with higher bandwidth requirements as workers and their families spend more time at home. The options might include internet speed-booster packages and switching connections from copper to higher-performing fiber-optic broadband services. Lastly, telcos can respond to the needs of enterprise customers through payment flexibility or creating ad hoc support teams to assist critical organizations such as pharmacies, hospitals and other first responders.
The pandemic will likely push telcos to modify front- and back-office operations to be more flexible and resilient. For example, the crisis will accelerate adoption of telcos’ digital customer-service channels and services. Companies can make this easier by directing customers to self-service channels through quick, coordinated changes to their automated voice-response programs, call-center scripts and in-store signs. We suggest testing several critical omnichannel customer service approaches on a small scale to ensure consistency before rolling them out more widely. Field engineers will remain on the physical front lines during the crisis, so special precautions will be required to protect their health. Visits to customers’ homes and offices will be reduced to only the most critical situations. With many isolated or quarantined premises, engineers will drop off equipment, then use remote video chats to help customers install or repair it. Additional precautions include limiting or staggering depot exchanges by taking vans home at night, fully stocked. Up-to-date inventory will be vital.
For telecom networks, the top priority is resolving congestion as traffic spikes. Aside from overall surges in traffic, peak demand on fixed-line networks has risen more than 20% in affected regions, putting some network nodes under extreme stress and sometimes beyond capacity. To address connectivity issues proactively, specialists in network operations centers (NOCs) can deploy predictive analytics tools to identify the highest-risk areas. Leading organizations will grant these centers special, preapproved funding so they can act swiftly and obtain equipment on short notice. And of course, telcos must enhance business continuity and infection prevention measures to protect NOC staff and facilities.
As in other crises, there are reports of a rise in cyberattacks. Companies are moving quickly to add production capacity and maintain effective operations while they shift work to different locations. But such moves increase exposure to cyber threats because business continuity measures, such as backup servers, are typically not as secure as normal production systems. They can lack the latest security patches and undergo less rigorous testing. Remote workers are also vulnerable because they’re more likely to use less secure networks, such as home or public WiFi, and phishing attacks against employees often increase during times like these. Hackers recognize these weaknesses and aggressively exploit the situation. Businesses are also aware they need to strengthen their cybersecurity. In November, well before the Covid-19 outbreak, 48% of executives in a multi-industry survey conducted by Bain reported their company’s cyber defenses were inadequate (see Figure 2 below).
Telcos can do their part by fortifying their own security postures, rapidly improving where needed and ensuring their customers have access to the best possible defenses against cyber threats. Telcos that provide security services to consumers can offer discounted or free services during the outbreak. They can also share best practices for increasing security while working remotely.
Ultimately, what’s at stake with Covid-19 is not just a risk of increased cyber crime and socioeconomic instability, but also the lives and well-being of millions of people. Telecommunications companies have a vital role to play in helping communities and organizations respond to the pandemic. If handled effectively, telcos can also strengthen their relationships with the people they serve and help everyone emerge from the crisis even stronger. You can watch Digital Transformation World Series content live and on demand now! Not registered for DTWS yet? There’s still time. Join 12,000 of your peers online through November 12. CSPs receive complimentary passes. Sign up here.
Alex Bhak, Ozan Bayulgen, and Frank Ford, all Partners at Bain & Company also co-authored this article.
