Here is a good read on how Bitcoin is related to telecommunications:
https://www.linkedin.com/pulse/blockchain-telecom-industry-golam-dastagirhttps://cointelegraph.com/news/how-bitcoin-disrupts-telecommunicationshttps://www.thekickassentrepreneur.com/bitcoin-and-telecommunications/Since Bitcoin is a blockchain technology it can help greatly in telecommunication by:
- Securing messages
- Securing VoIp
Blockchain technology can have an important role in reducing the risk of interoperability. It will help to create a standard communication protocol that will ensure the existence of decentralized apps across an interoperable network.
This will also help facilitate social communication across apps. Bitcoin and blockchain tend to grow across different sectors. Businesses across different sectors should identify how these technologies will be helpful.
In this article:
https://www.wipro.com/business-process/blockchain-in-telecom-do-we-want-to-take-that-jump/It clearly explained how a Blockchain technology can solve some problems in telecommunication
1. Network & infrastructure – Telcos are complex and they require significant infrastructure projects and investments. Almost all telecom organizations have undergone the 4G/LTE network set up and by the time they reap benefits, we already have 5G coming in forcing them to upgrade again.
2. Business/operation support systems – Existing technologies are not collaborative, stubborn and protected. They have always resulted in poor customer experience, have poor implication on profit & loss statements due to leakages and process inefficiencies.
3. Price wars – the slurry of new age telecom providers entering the market has made the end customers spoilt. With service providers having to almost unanimously give abundant free calls and data packages to the consumers, we are looking at underutilized data, calls, SMSs from almost all subscribers.
4. Frauds: According to a report released by Deloitte1, Communication Service Providers (CSP) lose ~ USD 40 Bn every year due to fraudulent activities.
This also stated the use case of Blockchain tech on Telecom
Use cases in telecomWith the multiple pain points coming, we also have emerging technologies like Blockchain that helps CSPs to work and keep themselves profitable and relevant in the market. In this section we will try and correlate the use case as per the pain points mentioned in the section above:
- Almost all organizations started to board the 4G/LTE train when it began. The investments were significant, and the ROI was barely making it. Competition is anyway quite high and then you have heavily invested entrants who are willing to bleed the competition to death. (Jio can be a great example in India). It is all but natural for organizations to start sharing the new infra costs. The term coined “sharing economy” brings in its own complications and challenges. Multiple vendors and contracts are the norm in this scenario. How does Blockchain help? Due to its decentralized features and transparency, Blockchain allows a level playing field for telecom players.
- In the business/operation support systems scenario, you could look at services provided by Telcos as a complex ecosystem when it let’s say undergoes the entire Quote to Cash value stream. The entire ecosystem is complex with multi-threaded supply chain ecosystem that requires interdependent teams. Blockchain would enable use cases where telcos will be able to remove middlemen in inter carrier settlements, prevent fraud during roaming and mobile number portability processes. It can also solve process inefficiencies by building efficient supply chain systems.
- Fraud prevention is another use case that Telcos are depending on Blockchain to help cater to. If we have to calculate fraud costs – we are looking at ~ USD 40 billion (Deloitte) annually. Using Blockchain we can look at significantly decreasing the cost of fraud in roaming and in identity management.
- Micropayments – This is another fantastic use case currently in use for multiple telecom operators. The telecom organizations can utilize Blockchain to enable these payments for OTT services such as payment wallets, music applications, games etc. These services along with user to user monetary transfer services can result in positive revenues for the service provider and hence impact the company in a positive manner.
- Smart contracting – automation of internal processes through Blockchain. We can look at processes such as billing, roaming and supply chain management. The present transactions operate through ledgers that need to undergo a clearing house to get approved. By using Blockchain, Smart Contracts can automate this process and guarantee the settlement between the participants, by routing from one operator’s Blockchain to another operator and increase transparency to the end customer. Assume a subscriber is operating while on roaming and dials out on the phone network. This transaction is logged on the Blockchain network (from the call being picked up to the call being ended) and saved. The smart contract rules define the charges and the payment is registered. The transparency from point A -Z ensures the integrity of the transaction.
