Blockchain in Telecom industry for Secure and Decentralized communication
Telecom rediscovers itself often. With the emergence of the mobile phone, Telcos switched from fixed landlines to mobile subscriptions and SMS, a giant cash cow.
Several #telecom companies now make most of their money from data, which requires another business model adjustment. Blockchain can help the telecom industry reinvent itself as every company becomes a data company.
Telephony is ubiquitous. Hence the telecom business is extensive and complex, with over 2000 mobile network operators. Many players and billions of users and gadgets use multiple networks. The Internet of Things will add tens of billions of devices to global telecom networks, giving the telecom industry a significant opportunity. Blockchain manages billions of connections and transactions. Blockchain’s immutability, verifiability, and traceability allow the telecom industry to build an environment where consumers are in charge, and there is trust, security, and transparency. Consumer costs, network quality, and stakeholder experience improve.
Three Applications of Blockchain in the Telecom Industry
Blockchain applications will likely be numerous in an environment with billions of transactions. But, I’d want to concentrate on three major applications that I believe will impact the worldwide telecom business the most.
5G Infrastructure and Customized Data Plans
5G is rapidly becoming a reality around the world. It promises to provide high-speed internet, which will be necessary for our data-rich future. Telecom enterprises, or Communication Service Providers (CSPs), must ensure a range of access nodes and techniques to deliver ubiquitous access across networks for billions of devices. Of course, any telecom firm can handle this centrally, but this frequently results in delays and non-seamless provisioning. A more dependable and efficient option would be to use a private blockchain accessible only to CSPs.
The rules and agreements of distinct CSPs can be coded in smart contracts kept on the private blockchain within the private blockchain. Devices wishing to connect to the #network broadcast their identification to the distributed network. Users are charged based on the parameters specified in the smart contracts. Because smart contracts are immutable, the settings may be readily adjusted if necessary, allowing for flexible and dependable delivery to any device.
From communications provider to identity provider
Internet identity is the next big thing, and many groups are attempting to create self-sovereign identities for people, companies, and things. In the future, each piece of data may have its own identity (or meta-information), allowing for quick and reliable data sharing among customers and businesses. A self-sovereign identity gives the end-user complete control over identity management and a new telecom industry business model.
CSPs could provide a virtual sim card, or an eSIM (embedded SIM), which offers virtual identities for devices, data, or users. This virtual identity can then be used to undertake transactions among users, companies, and connected devices, such as checking in to a social network or purchasing items online. A virtual identity can provide numerous benefits, limited by the number of partners the CSP can sign on to the system. Identity-as-a-service could be a significant new income stream for telcos.
IoT Devices for Smart Homes, Smart Cities, and Smart Everything
By 2025, the average person will engage with a connected gadget approximately every 18 seconds, digitally documenting every move, query, purchase, plan, and transaction. Because billions of transactions between billions of devices must be managed securely, the Internet of Things provides a substantial new income model for CSPs. CSPs can begin constructing a blockchain network by adding nodes to every mid-range cell tower, which is reasonably inexpensive.
Various CSPs can run a decentralized network and are utilized to provide self-managed peer-to-peer networks, allowing for highly secure transactions among linked devices. Of course, companies like IOTA are attempting to establish the infrastructure for the Internet of Things. With the Internet of Things expected to add US$19 trillion to the global economy, there is numerous potential for CSPs to increase income through decentralized IoT services.
Roaming and Settlement
Another apparent blockchain application in telecom is roaming and settlements, which are now plagued by inefficiencies, human mistakes, and fraud. Several intermediaries secure a customer’s access to mobile/data networks, for example, when traveling outside the country. This makes it inefficient and costly, giving the customer a tremendously inconvenient user experience. Furthermore, any issue arising from unexpected charges or bill settlement while utilizing roaming can typically take months to resolve.
Telecom companies can use blockchain technology to develop smart contracts without human interaction, resulting in a seamless automated experience. Consumers gain from a transparent service, and businesses save money and boost efficiencies by cutting out the intermediaries.
Monitoring of SLAs
SLAs (Service Level Agreements) are critical in the telecom industry since they specify the services delivered to customers regarding technical capacity, quality standards, rate reduction rights, etc. Yet, SLA monitoring is frequently prone to inefficiencies, delays, and disagreements depending on how the agreement is read.
For example, a client may be entitled to a discount if the provider fails to meet the contract conditions owing to a service outage or high latency issue. While many telecom companies have invested in SLA #automation, there is always a requirement for manual processes that compound these delays.
Utilizing blockchain #smartcontracts can clarify SLA conditions and make the monitoring process more visible, and payments can also be automated upon accomplishment of the agreed-upon criteria. For example, if a client is without service for an extended period, they will automatically receive a rebate without needing to file a claim.
Portability of Mobile Phone Numbers (MNP)
Customers have had access to mobile number portability (MNP) for some time. However, it is a service frequently laden with difficulty and delays. This is often due to a communication breakdown between providers who may be holding or require extra information to complete the transfer. As a result, customers may become unhappy, and service providers may need more time for onboarding.
Smart contracts help automate SLA monitoring, settle roaming issues, and speed up the MNP process. #Blockchain can function as a single network through which all suppliers can access the same information.
And, because of the inherent qualities of blockchain, they can be confident that the data is #immutable, auditable, tamper-proof, and #trustworthy. This will enable all network providers to collaborate cohesively, efficiently, and with significant cost savings and benefits for the end user.
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