Telecom GDPR Compliance: A Business Opportunity
From 15 October 2015 through 21 October 2015, hackers breached TalkTalk’s systems and stole 156,959 customer names, address, and birth dates. 15,656 of these included bank account details.
On 2 February 2016, TalkTalk’s CFO stated in a conference call that the data breach would cost them between £40 million and £45 million. By October 2016, this figure climbed to £60 million. In Q4 2015, they hemorrhaged 250,000 customers. This slowed to 126,000 in Q1 2016. Although marketing efforts, including price cuts and new offerings, helped them offset these losses, over 40% of their new customers picked them because of their low prices — 10% higher than the industry average. Then the UK’s Information Commissioner’s Office (ICO) fined them £400,000.
They lost their customers’ trust and are still fighting to regain it.
TalkTalk was lucky. Since the data breach occurred before 25 May 2018, the ICO fined them under the more lenient Data Protection Act 1998 instead of the General Data Protection Regulation (GDPR). According to NCC Group, under GDPR’s sanctions, the fines alone would be £59 million.
This is not an isolated incident. On 12 August 2018, Eir reported a data breach affecting 27,000 customers. Then on 24 August 2018, T-Mobile reported that hackers stole personal data for over 2 million customers.
It will happen again.
For telecoms, who are already facing shifting consumer tastes and falling B2C demand, protecting your corporate profits from unforeseen security costs and regulatory fines while retaining (or even increasing) customer trust is essential.
Learn more about GDPR compliance and how can it help your telecommunications company to grow.
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Secure Collaboration for the Telecommunications Industry: Avoiding GDPR Fines While Growing Your B2B Revenue Stream
How GDPR Compliance Helps Your Company
Bringing your IT systems and policies in-line with GDPR’s key provisions and the European Union Agency for Network and Information Security’s (ENISA) best practices will help you minimize the risks associated with GDPR fines and increase your overall security.
Complying with GDPR also means being more transparent about how you use and protect your customer’s data. Over time and barring a data breach disaster, these measures will build or increase customer trust.
Shadow IT, Your Biggest Obstacle
What Shadow IT Looks Like
After a hacker steals data from Paul’s phone, Jeff in IT discovers that Paul and his associates use email, Slack, Skype, and WhatsApp, which are not all GDPR compliant for business use. Unfortunately, Jeff learns this alongside the regulators investigating the data breach.
Your company is fined for the data breach and for violating your customer’s data subject rights.
Protecting Your Company While Providing the Services Your Employees Need with Adeya
A month before the phone hack incident, Jeff implements Adeya On-Premises, which like Adeya On-Cloud is 100% GDPR compliant, and creates a workgroup that includes Paul, Sandy, and Paul’s boss. He assigns Paul’s boss administrative priveledges for the group and walks him through the intuitive, customized dashboard. After installing Adeya’s communication app throughout your company, Jeff enforces your new IT lock-down policy.
Your employees don’t complain. Management bought into Adeya’s apps and dashboards when they helped Jeff customize and brand the system to suit your company’s needs. Your employees bought into it when they realized they weren’t losing their instant messaging app. Instead, they gained a centralized contact list, PBX integration, and collaborative note-taking.
Your Corporate Communications After Adeya
A month later, disaster strikes. Paul’s loses his phone on the way home from work and a hacker attempts to access it. Within hours, if not minutes, Jeff receives a notification from your system. When he reports the incident to management and the relevant authorities, he notes that military-grade encryption protects all customer.
Your company avoids a hefty GDPR fine. Your grateful customers breathe a sigh of relief and recommend you to their family and friends.