EY names top risks for telcos in 2026

Biggest threats include inadequate operating models and ineffective transformation.

Telecom companies need to execute end-to-end risk management, according to EY, which has published its global "Top 10 Risks in Telecommunications for 2026" report.

According to EY, here are the biggest risks facing the sector in the coming year:

1. Underestimating changing imperatives in privacy, security, and trust

2. Ineffective transformation through new technologies 

3. Inadequate talent, skills, and culture management 

4. Inadequate network performance and value proposition 

5. Insufficient adaptation to evolving geopolitical environment

6. Inability to take advantage of new business models 

7. Ineffective engagement with external ecosystems

8. Failure to respond effectively to changing customer needs

9. Poor management of sustainability agenda

10. Inadequate operating models to maximise value creation

The 10 risks are divided into four domains: compliance, operational, strategic, and financial.

"In Asia-Pacific, different trends are manifesting at a country level," EY reported. "In China, enterprise use cases are driving revenue growth, with 5G Advanced networks available in more than 300 Chinese cities.

"In India, telcos are using tariff hikes to support average revenue per user (ARPU) growth, and indigenous technology is being used to expand 4G and 5G networks."

It went on to note: "Across ASEAN (Association of Southeast Asian Nations), market structures are changing, with consolidation underway in Indonesia and the Philippines, and access to Malaysia's state-run 5G network opened to all operators in January 2025.

"And in Oceania, ARPU continues to grow in Australia, but Low Earth Orbit satellite providers are adding to competitive intensity in the regional broadband market."

To address the threats, EY is urging telcos to revisit their risk roadmap; double down on cultural change and metrics management; and execute end-to-end risk management.