How telcos can take advantage of the cybersecurity boom

As Latin American telcos follow the general trend and evolve into digital service providers, cybersecurity solutions are becoming increasingly relevant.

Operators have 10% of the cybersecurity market share, according to security solutions provider Fortinet, which believes telcos could capture up to 40% of the market by taking advantage of the demand for cybersecurity integrated with connectivity and Internet of Things (IoT) solutions.

Fortinet's VP for the services provider market in Latin America and Canada, João Horta, discusses the current market dynamic.

BNamericas: What opportunities does the renewed interest in cybersecurity open up for mobile operators?

Horta: Today, almost all companies, whether SMEs or large companies, are exposed digital services, so there is concern about cybersecurity.

Telcos are at a critical point where they are not only looking to expand their networks, but also their services and ensure that they are reliable.

So, operators are integrating connectivity with cybersecurity, cloud solutions and IoT because customers are asking for it and because the security margins are quite good. So, there is substantial investment in managed services.

At Fortinet, we have made many efforts to support them in this transformation. The problem for operators is that their corporate culture is slow, and it is difficult to adapt to this more agile structure of digital services. 

But there are some that have succeeded and others that are working on this transformation.

BNamericas: How do you assess the general security situation, considering the major attacks on telcos' networks last year?

Horta: Latin American telcos have definitely been affected by a wave of cyberattacks that has been increasing in recent years. It is not that they have grown much in percentage terms, but the complexity of the attacks has grown.

Our projections for the telecoms sector are that [the number of attacks] will continue to be high because it is a critical infrastructure for the country.

If you look at some IDC studies targeting critical infrastructure in Latin America, they say that attacks have increased by 25%.

Telcos, like any other company, are also using more digital services. And as they deploy 4G and 5G, they are also expanding their attack surface, making them more vulnerable to sophisticated threats.

We have seen operators experience significant disruptions to their services due to denial of service attacks or malware.

BNamericas: Has investment in cybersecurity increased in the wake of cyberattacks?

Horta: Without a doubt. Telecom companies have the capacity to invest and are not waiting – they are investing. The difficulty has to do with corporate culture. 

There is a small but positive trend of incorporating artificial intelligence technologies and predictive analysis into cybersecurity operations. There are also strong investments in operational processes and in the development of new security offerings.

If we look at cybersecurity in Latin America, telcos control 10% of the market. They have understood that they can be a reference in cybersecurity for their clients, not only corporations, but also the middle market and SMEs.

BNamericas: How much can this share grow?

Horta: My view is that they could have 30-40%, for several reasons, because they are companies that have investment capacity, they have know-how and highly developed sales forces.

If they integrate cybersecurity into their solutions, I think they can reach 30-40% in the next 5 to 10 years.

BNamericas: Could you comment on how generative artificial intelligence is being used?

Horta: Generative artificial intelligence is a complement that allows decisions to be made efficiently in real time with the same margin of error as an average analyst. This allows operations to be more efficient and decisions to be made more quickly.

I think in the next two to three years, it will become more common because it offers greater efficiency.

BNamericas: Could your company help solve the problem of the lack of specialized human resources?

Horta: The lack of resources is still a problem, and not only in Latin America but it is a global problem. Training a professional can take about three years, so, with the growth in devices and connectivity, if you do not use artificial intelligence to complement it, you cannot continue to grow and offer quality services.

So, we need the contribution of artificial intelligence to continue growing.

BNamericas: What do you expect for the Latin American market next year?

Horta: 2024 was a year of lower growth, for several reasons, including economic ones, but 2025, based on all the conversations we have had, is going to be a year of strong investments and growth.

BNamericas: In all countries in the region?

Horta: Latin America has a lot of countries, but if you look at the top four or five, they are all following very similar trends.