Blockchain in Telecom - Ushering a New Era!

Blockchain has the power to change the traditional telecommunication industry. Blockchain will not only help to reduce operational costs for things like user identification, billing and content delivery network, but it can also serve as the best solution to enhance network security, improve overall efficiency and streamline revenue streams.

As per a recent study by a leading market research company, blockchain in telecom market is expected to grow from USD 46.6 million in 2018 to USD 993.8 million by 2023, at a Compound Annual Growth Rate (CAGR) of 84.4%.

As per a research paper from Techo giant Infosys,

The telecommunications value chain consists of providing the necessary network infrastructure and connectivity for voice, data, media and other related services. There is data exchange between networks that call for data security, data integrity, data inspection, and fraud prevention. With IoT and edge computing, more devices gets added to the network and there is a need for device identity and security. New flavors to network management and new infra sharing models are coming up, e.g., lease management of 5G Network slices for telco and network partners, enterprises, Mobile Virtual Network Operators (MVNOs), and Over the Top (OTT) players.

Core operations like Operation Support System (OSS) and Business Support System (BSS) processes include partner management, enterprise management and customer management to address contracts, settlement, supply chain management, SLA management etc. Also, in the digital journey, new business models and eco system partners come into play. Blockchain can help simplify the process, make them secure, transparent and efficient and find new revenue streams through digital bundle value propositions.

Understanding the huge potential of Blockchain, some of the major telecom service providers are increasingly investing in blockchain development and implementation by entering into partnerships or collaboration agreements with technology companies and investing in funds dedicated to blockchain technology research and development.

Let's take a look at some of them.

Orange S.A

Orange S.A (formerly France Télécom S.A) is undoubtedly one of Europe's Largest Telecom operator. With over 256 million customers and employing around 135,000 people, Orange is currently ranked among one of the top ten largest mobile network operators in the world.

In April 2019, Orange S.A was in in the news hosting Orange Fab Asia in Taipei, China which aimed to run a three-month accelerator program that supports Asia-based start-ups seeking to expand their businesses in the global markets.

Recently Orange started exploring the blockchain space, conducting several meetings with Aelf Blockchain. As per an official communication, the Orange team was exploring new ideas about blockchain adoption as well as how to combine aelf's cross-chain technology with Orange's digital innovation.

China Mobile

Recently China Mobile, China Unicom and China Telecom have come together to create Trusted Blockchain Telecom Application Group. The main purpose of the group is to jointly drive the new effort to boost the industry's operations with blockchain, accelerating the broader initiative to foster and lead the development of the technology behind cryptocurrencies.

As per an official statement, Trusted Blockchain Telecom Application Group is expected to focus on blockchain applications like those related to sharing data from their separate internet of things (IoT) networks and client identity verification, which could help drive down their combined operating costs, according to the statement.

Reliance Jio

Reliance Jio is one of the largest Indian mobile network operators which wholly owned by Reliance Industries. As per an official communication from the chairman and managing director Mukesh Ambani,

"Over the next 12 months, Jio will install across India one of the largest blockchain networks in the world, with tens of thousands of nodes operational on day one,"

This is significant in terms of blockchain adaption, as recently India was in a bad light due to the rumours to place a blanket ban cryptocurrency

Jio is not new to blockchain. It has already started using Blockchain to deliver security, trust, automation and efficiency to almost any type of transaction.

British Telecommunications PLC (BT)

BT Group is a multinational telecommunication company based out of London, United Kingdom. It has operations in around 180 countries and is the largest provider of fixed-line, broadband and mobile services in the UK, and also provides subscription television and IT services.

British Telecom currently holds the most number of core patents (5+) related to the implementation of blockchain in the telecom industry which includes one patent awarded for a proposed cybersecurity measure aimed at protecting blockchains from "majority control attacks" (also called "51% attacks")

Colt and PCCW Global

Past year, Colt and PCCW Global were in the news to carry out a proof-of-concept (PoC) trial to dramatically reduce both time and costs for the telecom industry, especially in the area of inter-carrier settlement. This was a significant development as the inter-carrier settlement of wholesale international services could be automated through the use of blockchain. By using blockchain technology, the PoC was able to reduce this labour intensive process from hours to minutes.

This attracted major telecom players from ITW Global Leaders' Forum (GLF) like BT, Telefónica, HGC Global and Telstra to join the trial.

Telefónica

Telefónica is a Spanish telecom giant that has collaborated with a Blockchain startup Rivetz to develop smartphone security solutions. Blockchain project Civic was successful in entering into a tripartite agreement with Rivetz, and Telefónica's to utilise Civic secure identity verification solutions that incorporate added hardware protections for mobile users.

In early 2018, Rivetz has developed decentralised security solutions for mobile users aimed at improving cybersecurity controls and protections for secure messaging and cryptocurrency wallets.

T-Mobile

T-Mobile is the brand name used German telecommunications company Deutsche Telekom AG. T-Mobile has been working toward blockchain utilisation in multiple areas, such as its "NEXT Identity Project," which is a private blockchain solution.

The project which is driven by Hyperledger Sawtooth aims to help users to control data on the Hyperledger blockchain using Hypertext Transfer Protocol (HTTP)

Conclusion

Blockchain technology is here to stay and will likely be having a tremendous impact on Telecom Industry. It will be advantages for Telcom operators to embrace blockchain in the early stages, which will help them to stay ahead in the highly competitive market.