Blockchain is a dynamic technology that can be beneficial for many sectors if used effectively, to develop trust, transparency, and enhance the working efficiency of an organization. The notable feature of this technology is its decentralized ledger practice, which develops trust and transparency among all the people in a network. At present, it is one of the highly used technologies within different industries, and they enjoying its full advantage.
Learning from the experiences of the benefits enjoyed by different industries, it is time for the telecom industry to leverage its benefits. It would not be wrong to say that if the telecom industry implements blockchain technology in its operations, it can overcome lots of flaws.
Features of blockchain technology:
Some of the features of blockchain technology are:
- Developing trust among all the members of the network
- Distributed and decentralized ledger
- Cryptographically secured
- No role for third party intermediaries
- Immutable, irreversible, and auditable records
- Chronologically arranged.
Challenges and Opportunities in front of the Telecom Industry:
The communication service providers have to perform lots of tasks including, developing strong network infrastructure, connectivity, and various types of other services. Today the industries are finding new sources of revenue generation, and the telecom industry is no exception. Due to demand for high bandwidth and increasing competition the revenue of telecom service providers is decreasing.
Blockchain is capable of improving the core management system of telecom service providers and increasing their revenue.
Challenges and Opportunities
Communication service providers (CSPs) control the end-to-end value chain i.e. data connectivity, network infrastructure, and other related consumer services, for both the users and businesses. Nowadays there is a need to find new sources of revenues and reduce the costs as the revenue is decreasing due to the factors of high cost and high bandwidth demand.
Blockchain has the capability to impact the core management system of CSPs by creating an environment where cost can be reduced, and revenue can be increased with efficiency. Below are some fields where the introduction of blockchain technology can benefit the telecom industry:
- Control on fraud management
- IoT connectivity
- Enablement of 5G
- Instant connectivity and transmission
- Identity management
- Managing data
Benefits of Blockchain Technology for Telecom Industry:
Some of the fields in which the telecom industry can enjoy benefits by the instant implementation of blockchain technology are:
- Roaming: The benefits of roaming services from telecom industries are not hidden from any mobile user. The service connects the network of available telecom companies while travelling. The roaming charges are calculated automatically according to connectivity between different networks. This increases the cost of roaming charges. By implementing blockchain technology the telecom companies can enter into micro-contracts automatically for roaming services. The smart contracts will let the service providers enter into the roaming agreement immediately as soon as their subscriber connects with the network of another service provider. It will develop transparency in the transaction whenever the subscriber uses the roaming service.
- Use of the Internet: At present, while implementing the IoT rules the telecom companies have to struggle with issues like security and viability. By introducing blockchain technology they will be able to work in a protected environment and able to manage the connected network with different nodes. These nodes use single embedded IoT sensors merged with the efficiency of recognizing every block in the blockchain.
- Identity Management: At the time of applying for a mobile connection, the user has to provide personal details to the service providers. This whole process is time-consuming and laborious. To get rid of this problem, every user should be either given an ‘eSim’ or asked to download an application to create virtual identities. These identities can be encrypted and recorded in a blockchain. Later, the subscriber can automatically approve and authenticate his identity. With the help of virtually stored identities, the service providers can use the details of subscribers without asking them to sign up every time for new accounts.
These are some areas where telecom companies can enjoy benefits by implementing blockchain technology in their operations. For this, they can hire the services of an expert blockchain development company to optimize it according to their use.