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Blockchain technology pushes the whole world forward. It has the potential to disrupt business models in virtually every industry. According to a recent report by a leading market research company, the telecommunications market is expected to grow to $993.8 million by 2023 at a Compound Annual Growth Rate (CAGR) of 84.4% over the forecasted period. One of the challenges telecom companies face is the need to innovate in a highly competitive market while reducing costs to keep their services within an affordable price range. Today, let’s talk about how the application of blockchain in telecommunications will bring new opportunities to this enormous market.
Blockchain within the telecom sphere
The telecommunication value chain consists of providing the necessary network infrastructure and connectivity for voice, data, multimedia, and other related services. Data exchange between networks requires data protection, data integrity, data verification, and fraud prevention. Blockchain technology offers the telecommunications industry the ideal solution for one of its main necessities. Due to reliable and secure access to data, blockchains are already used in many telecommunications industry applications. The ability to store historical user records without any possibility of falsifying those records allows you to manage various aspects of user accounts. Some of the blockchain applications in the telecommunications industry include the automation of many internal operations such as billing systems, roaming, and supply chain management.
Automation of billing systems using smart contracts provided by blockchain technology saves companies a lot of time and money and prevents any possibility of fraud. As a result, the entire accounting and auditing process will be automated, saving telecommunication companies more money. New network management options and new infrastructure sharing models are emerging, such as 5G network segment rent management for telecom companies and network partners, enterprises, Mobile Virtual Network Operators (MVNO), and Over the Top (OTT) players. Blockchain can help simplify the process, make it safe, transparent, and efficient, and find new revenue sources through digital packet value propositions.
Blockchain in new digital services
Blockchain technology still has a lot of innovations to offer to the telecommunications industry. Blockchain-based service packages can create new revenue sources for telecom companies. Although these services have not yet been fully explored and realized, some of them are already clear enough to be implemented on a large scale.
The low cost of using blockchain for payments can allow telecom companies to provide micropayments, which are usually used to buy online mobile games, music, and more. As a result of the deployment of this service, third-party applications will not have to provide bank account details, credit card details, or any other sensitive or personal data. In other words, a telecom industry blockchain application will provide an even higher level of security for telecom users.
Client fund transfers
Another application of blockchain technology is money transfers. This may seem quite obvious because thanks to cryptocurrencies, blockchain has moved from theory to real-world application, but many telecommunications companies have not yet adopted this concept, allowing users to transfer money to each other through a blockchain-based service.
Identification and verification
Since blockchain technology offers a reliable and invincible security level, verification of digital ID will become one of the most valuable applications in the telecommunications industry. This will become even more significant in the future, as telecom companies will begin to deploy blockchain technology in all financial aspects of the users’ needs. Identity verification technologies now cost companies billions every year. Startups such as Civic are now deploying much cheaper and safer identity verification systems based on blockchain technology.
Internet Marketing and Advertising
Telecommunication companies already have data from millions of users. Through the use of blockchain technology, these companies will be able to use this endless source of data in online marketing and advertising industries in a more efficient way.
The online marketing and advertising market is currently largely inefficient, making it an ideal environment for telecom companies to intervene and use blockchain applications to offer a better market for both advertisers and users. With blockchain technology, advertisers can attract more potential customers, and users can decide how and when their data and information will be used in the advertising market.
What the future holds
The idea of having a record-keeping and tracking method that is protected from manipulation or hacking makes blockchain applications limitless in all security-dependant markets. Most applications using blockchain technology in telecommunications are somehow related to finance. The simplification of financial transactions and transfers through blockchain technology promises to lead telecom companies into a future where these companies will turn into fully functional banks at the lowest possible cost. This step will be supported by the fact that telecommunication is one of the industries that enjoys a high level of customer trust. The use of blockchain-based applications will allow taking efficient use of this trust and, at the same time, increase it.
Blockchain technology is still considered relatively young. That’s why it is so rich in unexplored opportunities. Thanks to blockchain technology, the world is now in the phase of creating a new tool that can be used in ways previously unknown. Digital telecom companies strive for extreme digitization of the entire organization and ecosystems, and blockchain can be a viable solution for specific scenarios and ensure simplicity, efficiency, and transparency.
Disclaimer: The contents of this article are not intended to be financial advice and should not be treated as such. 3commas and its authors do not take any responsibility for your profits or losses after you read this article. The article has been presented to provide readers with general information. There is only personal experience described herein. The user must do their own independent research to make informed decisions regarding their crypto investments.