Proactive Strategies Telecom Companies Can Take to Safeguard Their Data and Operations
Telecommunication companies continue to face significant cybersecurity issues as network consumption by businesses and individuals evolves. Growing uncertainty related to geopolitical tensions, a shifting tariff landscape, and evolving artificial intelligence technologies are key factors forcing telecommunication companies to strike a delicate balance between security and innovation.
While the threat environment continues to become more complex, reported breaches have declined, per recent RSM research. According to findings in the 2025 RSM US Middle Market Business Index Cybersecurity Special Report, nearly one in five (18%) middle market companies experienced a data breach in the previous year, falling from a record-high 28% in the 2024 data. That dip could easily lead to complacency, but companies need to remain diligent as threats persist.
Underscoring the importance of taking the threat environment seriously are cybersecurity regulations—such as the cybersecurity risk management standards articulated in Executive Order 14028—that require companies to ensure the integrity of their systems.
Unconventional cyber warfare
With global tensions stemming from conflicts in the Middle East, Ukraine, and India as well as trade wars affecting geopolitical relationships, there are increased risks of cyber-attacks between foreign adversaries.
Companies also continue to navigate physical attacks on their global telecommunications networks. The physical network of cables, data centers, and energy connections is so vast that it would be almost impossible to defend the entire network from targeted attacks or extreme weather conditions. Underwater transoceanic internet cables are some of the most vulnerable telecommunications infrastructure.
The situation between China and Taiwan highlights the potential vulnerabilities of transoceanic internet cables. Taiwan has 15 undersea cables that connect its internet network to the rest of the world. An attack from China could sever these links and leave the country, and its inhabitants, disconnected from outside information and communication. In response, Taiwan has started to build its own satellite network to remain operational in case of an attack. This increase in satellite broadband capabilities will allow people there to communicate even when networks are down. During the Los Angeles wildfires, satellite connections were used to allow first responders and victims to communicate via text throughout the ordeal.
Artificial intelligence changing the cybersecurity landscape
AI has changed the landscape for most industries as the technology evolves into different applications and its functions improve. From a cybersecurity standpoint, AI has had implications on both sides of the equation. For attacks, AI can increase the scale and automation of cyberattacks, make data and intelligence gathering more efficient, and allow attackers to better customize and adapt their processes. There is also the threat of AI improving social engineering attacks with AI-generated deepfake videos, audio, or images to better fool targets.
On the other side, using AI to comb through and analyze data can help companies improve their ability to detect cybersecurity threats by honing pattern recognition capabilities, automating repetitive tasks, and enabling real time responses to incidents. AI tools can also help free up human members of organizations’ cybersecurity teams for more meaningful tasks and allow them to use such tools to analyze and interpret findings.
According to the RSM Cybersecurity Special Report, 34% of smaller middle market companies indicated that they do not yet have AI governance steps in place. To successfully deploy AI, technology companies need to have the employee resources and skills to implement an effective governance framework. Various frameworks are currently available from the National Institute of Standards and Technology, industry organizations, and several countries.
Proactive strategies
Customers of telecommunication companies need to trust that their data and personal information is secure. Any potential data breach or other cyber-attack could damage a telecommunication company’s brand.
As noted in this April article from RSM, “The increase in the number and sophistication of attempted cyberattacks over the last five years has led to several high-profile system compromises in the telecom sector and across most industries in the U.S.” The FBI received an average of 758,000 complaints per year from 2019 to 2023 and calculated around $12.5 billion of losses in 2023 alone.
Here are some proactive strategies telecom companies can take to safeguard their data and operations:
- Reexamine capital expenditures and make strategic decisions to strengthen the organization’s cybersecurity function
- Explore how teams may be able to combat adversarial AI with their own AI cybersecurity applications (while adhering to an effective AI governance framework)
- Conduct regular security audits and continue to monitor and react to suspicious activity
- Develop and test plans and procedures related to potential data breaches or physical issues on an ongoing basis
- Make sure employees have the necessary skills and training to identify the latest threats and respond effectively and in a timely manner
The takeaway
As they navigate a complex host of challenges, telecommunication companies need to make sure that their networks are resilient and equipped for what threats may come their way. Physical security, disaster relief plans, and backups will play a vital role in securing networks and allowing trade and information to flow uninterrupted.
About the Author
Nick Chitopoulos is a senior tax manager at RSM US LLP. In 2024, he was selected as a member of RSM’s Industry Eminence Program, which positions its senior analysts to understand, forecast and communicate economic, business and technology trends shaping the industries the firm serves. As an analyst in the program, Nick focuses on the technology, media and telecommunications industry. He is based in the firm’s Boston office. Nick can be reached at [email protected] and at our company website at rsmus.com.
