Market Updates

Blockchain - For Enhancing the Telecom Business Model

February, 2019

As mentioned in the previous article that blockchain technology has the potential to facilitate new business models in the telecom industry. Blockchain has several applications in telecom industry, the most predominant applications include:

1. Smart Contracts

Telecom companies can automate their SLA agreement into Smart Contracts by using blockchain solutions. This enables stakeholders to have real-time visibility which helps in identifying any threshold breaches and immediately inform the other parties involved.

2. OSS and BSS Processes

OSS and BSS processes such as billing, settlement, mobile number portability (MNP) databases, Do Not Call (DNC) registries, KYC and more can be streamlined using blockchain. Blockchain enables every person who are involved to have access to the entire database and its complete history which enhances the communication.

3. Identity and Fraud Management

Telecom provides the necessary connectivity and network infrastructure for data, voice, media, and other services. Data is exchanged between the networks, which require data inspection, data security, and fraud prevention. For value and data exchange between networks, blockchain can be implemented to reduce frauds as user can see every single information. Identity and authentication services based on cryptographic identity can be provided to decrease costs of implementing identity management.

4. Payments

This include mobile payment, inter-carrier settlements, micropayment systems. Globally with the increased digitization, people can pay their bills using mobile phones. This has given rise to cyberattacks, by giving attackers the chance to hack mobile and carry out fraudulent transactions. Blockchain can help the telecom companies in getting rid of the third-party intermediaries and streamlining the process.

5. 5G Enablement and IoT Connectivity

With the growing demand of 5G and delivering the best customer experience in such a competitive environment, it is essential for telecom companies to utilize the power of blockchain technology. By providing the secure channel between machines and sensors, blockchain implements a network gateway which give machines (IoT devices) a trusted and secure environment for communication.


Blockchain has the potential to enhance the business model in many industries which includes telecom, by increasing transparency and efficiencies in the process. Blockchain applications in telecom industry are in its initial stage, but are expected to increase significantly during the forecast period.

– Sonam Chawla,
Research Analyst,
Infoholic Research