Fragmented Security Regulations Cost Telecom Operators Billions Annually

Fragmented security regulations are causing severe financial strains for mobile operators worldwide, with billions of dollars redirected from crucial threat mitigation to complying with administrative requirements. The latest report commissioned by the GSMA reveals that this patchwork of overlapping mandates is hindering innovation and driving up operational costs without yielding significant improvements in cybersecurity outcomes. As the global cyber threat landscape continues to expand, now is the time for policymakers and industry leaders to create harmonized, outcome-focused frameworks to address these inefficiencies.

Soaring Costs of Mobile Cybersecurity

The financial commitment to cybersecurity in the telecom industry is surging. Currently, mobile operators spend between $15 billion and $19 billion per year on core security operations, including technical defenses and threat monitoring teams. Projections suggest this figure could rise to as much as $42 billion annually by 2030 due to escalating cyber threats and increasing regulatory demands. Despite these investments, a significant portion of these funds is being drained by fragmented regulations that prioritize compliance over actual security enhancements.

The GSMA report highlights that inconsistencies in global regulatory frameworks result in duplicated efforts and delays in implementing effective responses to emerging threats. For multinational operators, the challenge grows more complex due to the lack of international harmonization. Even within regions like the European Union, directives such as NIS2 often vary at the national level, creating operational friction for enterprises attempting to navigate this regulatory maze.

Gold-Plating and Other Costly Practices

One of the most notable repercussions of fragmented security mandates is the industry’s adoption of “gold-plating” strategies. This approach involves adhering to the strictest regulatory standard across all jurisdictions, a practice often employed by Asia-Pacific operators in particular. While this ensures compliance, it also inflates expenses and slows the adoption of advanced security technologies, such as AI-driven threat detection or secure cloud solutions.

Prescriptive regulations, which focus on input requirements and rigid compliance checklists, exacerbate these inefficiencies. Operators argue that such outdated mandates prevent flexibility and innovation, often locking them into using legacy systems. The GSMA advocates for a transition to outcome-based policies, such as Australia’s Security of Critical Infrastructure (SOCI) Act. This approach emphasizes achieving security objectives without dictating specific technologies, allowing operators to tailor solutions according to their particular risk profiles.

Fostering Trust and Collaboration

Effective cybersecurity depends not only on regulatory clarity but also on fostering collaboration between operators and regulators. However, many telecommunications providers report a lack of reciprocity in threat intelligence sharing. While operators are often mandated to report incidents, regulatory feedback is either minimal or seen as punitive, creating a compliance-centric culture rather than a cooperative defense mechanism.

Programs such as the UK’s National Cyber Security Centre (NCSC) Industry 100 initiative have shown how trust-building and private-sector integration can significantly improve security outcomes. Encouraging open dialogue and ensuring shared accountability between regulators and operators can propel the industry toward a more resilient, proactive cybersecurity environment.

The Path Toward Harmonization

The GSMA report concludes with a call to action for policymakers and industry stakeholders to develop coherent regulatory frameworks that prioritize security outcomes over administrative formalities. By aligning strategies with enterprise needs and focusing on transnational harmonization, the telecom sector can streamline costs while bolstering defenses against an increasingly complex threat landscape.

Ultimately, for mobile operators, cybersecurity is no longer a siloed function—it’s a critical business imperative that impacts every aspect of operations. Without unified and flexible policies, the telecom industry risks channeling billions of dollars into compliance rather than safeguarding critical infrastructure, stifling both innovation and resilience.