Blockchain- Future of Telecom industry


In today’s flat world the major backbone is communication. The need for CONNECTED SOCIETY with the evolution of 5G/IOT technology has increased the data flow exponentially. This has draw a new line of business and technical challenges for Communication Service Provider (CSP) on;

(i) Secure and Trustworthy communication
(ii) Cross Border Jurisdiction process
(iii) Global fraud
(iv) Revenue leakage e.g. with loss of data
(v) Delay in multi party Settlement
(iv) Involvement of third party to ensure data integrity
(v) Real time tracking of events and Service Level Agreement

These aforesaid concerns challenged the business leaders on their existing business model and force them to think beyond to foster a new “TRULY GLOBAL” business model for operators to create new revenue stream supporting transactions in any currencies.

Here we can leverage Blockchain technology using Smart Contracts (SC). Blockchain facilitates the decentralized approach for CSP so that there will not be a single authority in between to ensure data integrity and security. 

In nutshell Blockchain technology;

  • Is a shared, replicated, permissioned ledger technology
  • Can open business networks by taking out cost, improving efficiencies and increase accessibility and revenue stream
  • Is Immutable, Data in Append mode only and can’t be altered.

Smart contracts are self-executable, verified and signed contracts encoded in programming language over blockchain network. This SC shall be self executed after fulfilling the predefined criteria of executions between the parties. Smart Contracts can be created using several popular SDK’s such as Ethereum, Hyperledger etc.

The Current Vs Blockchain business model for all types of inter operators transactions shall be;

In this above scenarios, the existing business model is “CENTRALISED” and Telecos have dependency to rely on third party (Middleman) to ensure transactions/data authenticity/integrity routed to their another partner Telecos.

It clearly shows lack of trust between partner Teleco operators and they are buying trust from third party to authenticate.

The Blockchain- Smart Contract will enable DECENTRALISED business model and both the partner telecom operators can mutually define there rules and transact in real time directly. This will create trust with partners and reduces their huge OPEX cost.

The typical service flow of Blockchain smart contract technology will be;

The current implementation challenges with Blockchain are;

  • No Industry standard for blockchain adaptation unlike ETSI
  • No Regulation Guidelines while dealing with Third Party Information
  • No Pricing standardization (Pricing guidelines)

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