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Will Subscribers Pay for Security?

Carriers see security as a vital component of their five-year strategies and expect to increase spending on security in 2018 according to the Telecoms.com Annual Industry Survey 2017.  Is security a good business opportunity for Carriers?

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Turns out investment in security has a good payback based on anecdotal evidence that subscribers are willing to pay 20% of their internet service fee as an uplift for security.  The uplift comes from upgrading to a premium service with security included or opting for a security feature on their existing service. 20% is a constant regardless of the local market cost for internet service.  Once subscribers understand that fast, affordable and safe internet service is available, who in their right mind would buy internet service without essential security?   Another perspective is the consumer security market is $5B[1] and the endpoint security market is $6B[2].  What carrier wouldn't want part of that market?

Now that the opportunity to increase top line revenue is clear, what about the bottom line?  Carriers need to create secure services that are highly profitable to deploy and operate. One approach that doesn't work well for carriers is providing endpoint security products like antivirus to subscribers.  Few subscribers go to the trouble of installing endpoint software.  Those who do get frustrated when they still get impacted by malware, phishing and ransomware.  No surprise that uptake is low for endpoint security offerings.  Small Businesses can't force their customers to install and maintain endpoint software.  Fortunately, there is another path.

Akamai offers lightweight, network based security solutions that are easy to deploy and inexpensive to operate.  Because they're network based, security is always in place.  Subscribers don't need to install software or third-party security devices to protect their laptops, tablets, and mobile phones.  Every device in the home is automatically covered, including IOT devices like smart TVs that are becoming popular.   Families also don't have to worry about accidentally clicking on a malicious phishing links.   Even if you could bolt on additional security products, small businesses and consumers don't have the resources and expertise to do so.

A carrier's security strategy pays off when its value-added services appeal to subscribers and the underlying architecture is easy to deploy and inexpensive to operate.

To learn more, see the security section of the Telecoms.com Annual Industry Survey 2017. You can access and read the full report here.



[1] Gartner Forecasts Worldwide Security Spending Will Reach $96 Billion in 2018, Up 8 Percent from 2017 - Gartner (December 2017)

[2] Revenue from endpoint security market worldwide from 2014 to 2020 - Statista 2018

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