TSP’s will undoubtedly have high impact of blockchain on their adjacent services as well as core management systems, which will provide several opportunities for new value propositions resulting in revenue growth, and process efficiency gains resulting in cost reduction. There are various applications of blockchain for telecom operators for future telecom trends and opportunities as well as for their current portfolio.
Blockchain has the potential for TSP’s in several areas which includes Fraud Management, Identity-as-a-Service, 5G Enablement and IoT Connectivity.
- For value and data exchange between networks, blockchain can be implemented to reduce frauds.
- Identity and authentication services based on cryptographic identity can be provided to decrease costs of implementing Identity Management.
- To streamline process blockchain will be used during 5G technology implementation.
- Blockchain enables highly secure peer-to-peer connectivity for many IoT devices with self-managed networks.
- Blockchain enables reliable audit trails as the history of all transactions is available in the ledger.
- Blockchain simplifies and provides a single view of data, rather than the need for merging several disparate systems.
- Blockchain by implementing smart contracts, lead towards fraud reduction and enhanced revenue assurance.
- A trust empowered by blockchain enhances coordination among several partners, because of shared view of liabilities and transactions.
- Blockchain results in cost savings by eliminating third parties.
For example, Verizon uses blockchain for Iot, blockchain can also be used by telecom companies for customer-to-customer money transfer services and India’s leading Telco’s Jo and Airtel both offer their digital wallets to enable customer-to-customer payments. These telcos are making their wallets more secure by employing blockchains to handle these transactions.
The major vendors for Blockchain in Telecom market includes SAP, IBM, AWS, Guardtime, Microsoft, ShoCard, BlockCypher, Filament, Cegeka, Abra, Oracle, Huawei, Blockchain Foundry, Bitfury, Auxesis Group, Sofocle, Clear, and Blockpoint to name a few.
Blockchain is delivering wide range of applications across the telecom sector and has the potential to impact TSP’s operating models by facilitating new business models resulting in revenue generation. Rising security concerns and demand of blockchain technology for fraud management and 5G implementation within telecom companies are the factors driving the growth of blockchain in telecom market. With the presence of major telecom players like AT&T and Verizon in the North America region, this region will account for highest market share.
– Sonam Chawla,