Big shake-up for companies like MTN, Telkom, Rain and Vodacom: expert

A recent PwC survey of CEOs in the telecommunications industry found that 46% do not feel their company would be economically viable in the next decade if they continue on the same path.

In PwC’s latest report covering the current telecommunications workforce, it found that the field has been rapidly developing, making it increasingly important that operators engage in campaigns to win over consumers – noting that the best way to do so is to upskill in-house workers.

Dealing with the shift to new technologies is key to the industry, as seen with the recent announcement of mass retrenchments at Telkom.

According to the company, it expects to retrench up to 15% of all its employees across the country – placing 1,700 people at risk of not having a job.

“As the group manages the delicate migration of revenue between old to new technologies, it is challenged with managing the costs associated with the different technologies, the competitiveness and sustainability of the group,” it stated.

“For Telkom to navigate the migration to new technologies as well as current economic headwinds effectively, the Telkom Board has supported that management start a consultative process aimed at restructuring the organisation to meet future demands.”

According to the financial services firm, there are five key trends set to alter the market further, namely:

• Fifth-generation wireless mobile network (5G) and sixth-generation wireless mobile network (6G) technology: The new technology provides faster speeds and lower latency that workforces need to be equipped to deal with.

• Artificial intelligence (AI) and machine learning (ML): These developments are playing major roles in optimising network performance and automating tasks – companies must be able to have their workforce co-exist with bots.

• Cybersecurity: With more connected devices, network operators need to invest in security infrastructure and adopt measures to protect against cyber threats and fraud.

• Network function virtualisation and software-defined networks: Such networks are becoming more important to improve efficiency and reduce costs; however, workforces must be ready to adapt to the needed new skills.

• Commoditisation: Telecommunication companies will need to be able to transform themselves to build a brand around a widespread, more diverse market.

PwC said that skills and capabilities in the context of telecommunication company workforces might be the biggest challenge facing them as they try to adjust to emerging technologies and markets.

In reference to the CEO report, PwC said that 76% of organisations are investing in automating processes and systems, and 72% are attempting to upskill current employees.

“CEOs say they are primarily consumed with driving operating performance, rather than evolving the business and its strategy to meet future demands (57%),” PwC said.

To best improve the workforce of telecommunications companies, PwC recommends aligning the workforce to work in collaboration with automated systems.

PwC added that it is important that companies invest heavily into future skills through select and targetted hiring, onboarding and upskilling programs.

New ways of work need to be allowed for with virtual/remote flexibility and operators stationed across various regional offices, warehouses, distribution centres, retail stores, head offices and more, PwC said.

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