The best safety lies in fear

In 2015, cyber security had a high profiledue to hacks that affected 20 million people in the UK. Telcos are on the frontline as they hold data that is attractive to hackers. As well as reputationaldamage, a successful hack can result in significant financial losses, forexample because service disruption can trigger liquidated damages clauses andcan prompt customers to lift and drop their servers to more secure providers.

For retail customers, loss of customer datacan cause churn to spike and, with the introduction of the European Union’sGeneral Data Protection Regulation (the “GDPR”: coming in to effect in 2017),the operator can now be fined up to 4.0% of worldwide turnover if it is foundto have failed adequately to protect EU citizens’ data.

For more information, please read the full report.