How Blockchain Will Revolutionize The Telecommunications Industry?
April 10, 2020
How Blockchain Will Revolutionize The Telecommunications Industry?
April 10, 2020

After disrupting some of the world’s biggest industries including banking, finance, hospitality, international remittance and more, there is no doubt that blockchain will revolutionize the telecommunications industry and provide much better outcomes for customers and stakeholders. Telecommunications and blockchain technology together project a promising future trajectory for communications to move forward.

A centralized operational structure of telecom companies creates various inefficiencies such as inaccurate billing, expensive usage fees, and security issues, which all increase costs for customers. Customers are usually subjected to inflexible terms and plans. These create hurdles in the telecom industry’s revenue.

New trends will need to be addressed by the telecom sector such as the growth of mobile connectivity, IoT and security of networks. However, the current billing and operational structure may not be well-suited for the IoT boom.

The current mobile network providers offer a range of services but are inflexible in its packaging and distribution. Telecom customers are often locked into long-term plans in the current business model.

Moreover, revenues of telecom sectors have been declining due to rigid operational structures and over-the-top (OTT) companies that provide apps such as WhatsApp, Viber decreasing the traffic for telecom companies.

ALSO READ :  Huobi Chain's Code Goes Open Source

Decentralized mobile networks aims to create a secure and trusted environment for telecom services and to narrow down the global digital divide by leveraging Distributed Ledger Technology (DTL).

A decentralized mobile network integration into the cutting-edge telecom, messengers, IoT and 5G technologies is a breakthrough in decentralized infrastructure.

It may eliminate many vulnerabilities to which the current system is exposed such as:-

No Fee Model

Several telecom providers have come up with a model for communications where subscribers are not only are free of fees but even get rewarded for engagement. This idea comes through digital advertising. Essentially, subscribers become token holders and don’t need to pay anything for mobile service and data, while telecom companies receive revenue from ads. 

Roaming Free Travel

Travelers often face increased fees when abroad because they usually have only two options: either to purchase a prepaid local SIM card or to turn on roaming and roaming is something where you don’t want to spend on.

The decentralization of mobile and data services erases boundaries between countries, providing users with communication opportunities in accordance with the trend of total globalization. It proves to be efficient than usual prepaid plans for travelers, since the acquisition cost decreases while average revenue per user and lifetime value would increase. 

ALSO READ :  Blockchain in Retail and Consumer Goods

Privacy

Users are becoming more and more concerned about their data’s safety. Large social media corporations allegedly sell users’ data where people are getting increasingly aware of what they let the internet know about themselves. However, blockchain brings privacy to a new level where private keys do not let third-parties access anyone else’s messages, making users’ activity completely invisible. 

Unused data trading

Another use case for blockchain in telecommunications is the trading of unused data. According to Ericsson ConsumerLab’s research, “Consumers become increasingly aware of the amount of unused data they are left with each month,” which means there must be an option to make benefits out of leftovers. 

Fraud Prevention

According to Deloitte’s research, telecoms lose approx $38.1 billion every year due to fraudulent schemes. Fraud in telecommunications usually occurs either when people use fake identification to purchase services or are left vulnerable when roaming. Blockchain implementation could change where the mobile device would be tied to the owner’s identity. Instead of broadcasting the International Mobile Subscriber Identity, the owner’s public key would be used. Neither operator nor any other third party would know the private key.

ALSO READ :  Srijan Technologies Develop Blockchain Platform to Track Honey Supply Chain

Safer IoT

Several devices interact over the internet, and the risk of some stranger’s device interrupting the communication is quite high. No one wants it to be exposed to outsiders. Blockchain would create a safer environment for data transmission also help in reducing expenses associated with the maintenance of IoT. 

Secured Bill Payments

Even if mobile carriers remain simple and don’t support any blockchain solutions, paying bills via the internet is still an option for many. Blockchain allows for safer transactions as you will find many payment services based on distributed ledger technology. 

Finishing Thoughts

Telecom providers and subscribers still struggle with roaming, high fees, risk of fraud, privacy issues and much more, decentralization could be the key to solving those issues. Although blockchain implementation still faces noticeable resistance among the masses, blockchain technology can solve most if not all the challenges faced by the telecom companies.


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

A Brief Overview On Wrapped Token

A Brief Overview On Wrapped Token

A wrapped token is an ERC-20 token with a value identical to another asset that it represents, either through a smart contract or by being backed one-to-one with the underlying asset. It is an asset hosted on the...

Blockchain in the Tourism Industry

Blockchain in the Tourism Industry

Tourism can be defined as traveling to a place that is different from your home city or country for various leisure or business purposes, and staying there for some considerable period of time at a length. It becomes...

Jafrin Ahmed

Crypto newbie passionate about creating resourceful content on blockchain technology, cryptocurrencies and decentralized apps.
Share This

Share This

Share this post with your friends!