In recent years, supply chain disruptions have become a significant challenge across industries, with the telecoms sector being no exception. Global shortages, rising costs and logistical constraints have made it increasingly difficult for network operators to access the essential components needed to maintain and expand their infrastructure.
To better understand the impact of these disruptions, TXO conducted a survey among fixed-line and mobile network operators, equipment vendors and other key stakeholders. The findings are detailed in our latest whitepaper, Navigating the supply chain chaos, which explores how telecoms companies can adapt and build resilience in an unpredictable market.
The state of supply chain disruptions
The telecoms industry relies on a complex and globalised supply chain to deliver essential network equipment and services. However, a combination of factors—including the COVID-19 pandemic, geopolitical tensions, semiconductor shortages and inflation—has led to extended lead times and increased costs for operators.
Some of the key challenges highlighted in the whitepaper include:
- Extended equipment lead times – operators are experiencing delays of up to 18 months for essential network components, creating bottlenecks in deployment and maintenance.
- Rising costs – inflation and supply shortages are increasing costs, putting pressure on budgets and project timelines.
- Risk of obsolete equipment – delays in supply chains are forcing operators to hold onto legacy equipment for longer, impacting performance and efficiency.
Building a more resilient supply chain
The whitepaper explores how telecoms operators can mitigate these risks and build a more sustainable and resilient supply chain. A key strategy discussed is the circular economy approach, which focuses on reusing, refurbishing and recycling telecoms equipment rather than relying solely on new manufacturing.
By embracing circular economy principles, operators can:
- Reduce dependency on constrained supply chains.
- Cut costs by extending the lifecycle of existing equipment.
- Support sustainability goals by reducing electronic waste.