Blockchain is a highly disruptive and hyped technology. Although it originated in the banking and financial sector, its potential is being explored at an increasing pace across many industries. But what relevance does blockchain have for the telecom industry? What impact will blockchains have on costs and processes? Could Blockchain help in the creation of opportunities that create more profits and promote new services?
Intraway and CoinFabrik, experts in the field, have gathered to discuss the main blockchain uses cases in the telecom sector:
As the telecoms industry looks for an effective and sustainable way to prevent and detect fraud, Blockchain is, in principle, an excellent option to reduce the cost of fraud. The telecom industry would save $19 billion annually, or 1.8 percent of total revenue, as blockchain can reduce losses due to fraud and minimize fraud detection application costs.
A clear use case is roaming. Whenever a call is made from one country while traveling, all the data generated must be reconciled between the operator in the country of origin and the destination country’s operator. However, since there is no common database at the time of billing, there is a risk of fraud due to the data’s asymmetry. This problem could be solved if such data were stored in the blockchain.
The deployments of IoT devices have very high complexity, and the use of blockchain would contribute to simplifying this process. Blockchain could also ensure secure and error-free connectivity for thousands of IoT devices connected to self-managed networks.
Also, the risk of a production stoppage due to damaged or hacked machines could be limited thanks to the use of a decentralized identity based on blockchain technology.
IoT technology is widely used in solutions of the “supply chain” type, in which sensors are used to monitor quality parameters during the transport of goods automatically. An application that uses blockchain to monitor the devices’ data could reduce this industry’s fraud detection time.
Implementing 5G technology is another example of how the telco sector could benefit from blockchain technology and streamline processes.
To meet the promise of ubiquitous access across multiple networks with 5G, CSPs will have to handle heterogeneous access nodes and diverse access mechanisms. Accessing the fastest access node for each user or machine will be a crucial challenge in the future. Blockchain technology could incentivize several servers for faster route selection.
The Way Forward
Blockchain technology is in constant evolution. It has a bright future and can change how CSPs interact with their partners and execute core business processes. If you want to move forward and reap its benefits, we suggest:
- Spending time with a lead partner in blockchain to learn business models and technologies.
- Evaluating the standards and regulations in force in the country and sphere of business operations.
- Investing in potential opportunities for revenue growth.
CSPs need to start building real use cases and, most importantly, understanding the opportunities blockchain has to offer.