The customers’ behaviour change, increased competition in the telecom industries are the factor that impacts the company the most.
Thus, the needs to innovate are crucial in the telecom companies to be on par with their competitors. The rapid change in technology resulted most telecom companies to go in digital transformation before being left out or overtaken by competitors in the market. For traditional telecom company to accommodate with the transformation, it must investigate various aspect which includes customers preference, innovating new technologies and infrastructures, availability of the spectrum in the market before plotting strategy and make decisions.
However, there are risks a telecom company may face during the transformation. One of the risks is that the traditional telecom company will be facing is the competition between the established over-the-top (OTT) providers which includes WhatsApp, WeChat and Facebook. This is a risk to the telecom companies as the OTT providers able to react to new opportunities and technologies quicker and fulfil the customer demands compare to traditional telecom companies. Besides, the intervention of OTT had resulted customers switch to a lower costs provider as their means of communication. The introduction of the instant messaging, video chat and cost-less voice telephony had significantly increase the usage of data services globally and affect the revenue market share of the telecom company as more user are subscribing to cheaper data option offered by the competitors in the market.
Besides, as Maxis is on their pathway to fully digitalise, training and developing employees’ skill is also a risk to the company if there is no proper medium and participation from the employees.