Blockchain in Telecom Is to Skyrocket

In 2018, MarketsandMarkets stated that the value of blockchain in telecom is going to rise 20 times and reach $994 million by 2023.

As customer acquisition costs in telecom can exceed retention costs by 50 times ($521 vs $11 in Canada), telcos are forced to adopt a subscriber-focused approach to their businesses. Central to this approach is the fault-tolerant, real-time maintenance of operations support systems (OSS) and business support systems (BSS), and this is where blockchain can help.

In the post, we analyze the drivers and challenges of blockchain in telecom and show how companies aiming to develop their blockchain infrastructure solve related issues.

Where Blockchain Fits Into Telecom Tech

While telecom requires near-instantaneous reliable tracking of the customers’ actions, blockchain decentralization can guarantee this functionality. For instance, decentralized apps (Dapps) built on top of the blockchain ecosystem genEOS can accomplish thousands of simultaneous secure transactions. Among other possibilities to benefit from blockchain, there is better fraud management, accessible implementation of IoT solutions, and support of the 5G technology.

Meanwhile, legislative uncertainty hinders rapid implementation of blockchain. In addition, the lack of technical knowledge and awareness of the blockchain technology in general makes its adoption challenging for telcos.

How Does Blockchain Contribute?

The potential benefits of blockchain in telecom are broad. Among them, there are instant traceability, security, IoT adoption, and 5G implementation.

Blockchain Can Trace User Needs in Real Time

The customer-centered approach by telecom companies implies near to real-time reaction to the changes in their subscribers’ requirements.

For instance, a customer makes a certain amount of net-in and net-out calls monthly, consumes a certain volume of megabytes, and uses roaming periodically. By enhancing the OSS/BSS operations, blockchain-based customer data tracking allows understanding this customer’s needs immediately. In this regard, telecom companies can improve customer loyalty and reduce churn rates by offering personalized best value deals to their subscribers.

Blockchain Can Guarantee OSS/BSS Security

The second way to improve telecom services with blockchain is to raise the safeguarding of OSS/BSS.

Do you know how many fraudulent cases can be revealed in telecom? A lot. It’s possible that someone clones a SIM card, while the original subscriber will still pay all the bills associated with this SIM card. SIM theft is another problem, along with false details provided by subscribers to avoid paying for their used services. Blockchain-powered security and subscriber identification systems can render these cases impossible.

Blockchain Can Set Up a Secure IoT Connection

Smart devices require secure connectivity to be steered. Blockchain can guarantee faultless peer-to-peer control over them. It means that your fridge or microwave can’t be hacked through their Wi-Fi connection.

Blockchain Can Improve 5G Technology

While 5G technology is all about giving all-round access to the Internet across different networks, blockchain can make this access sustainable. This is based on the blockchain decentralization.

Are There Any Weaknesses?

Legislative Uncertainty

The major obstacle behind the blockchain development for telecom is its uncertain regulatory status. Most countries chose the ‘wait and see’ approach to blockchain. However, there are some that have already adopted the laws regulating the technology. For instance, China banned ICOs in 2017. The US National Security Service monitors bitcoin users, and participation in most ICOs is still legal.

This legal uncertainty remains one of the key blockchain weaknesses. Meanwhile, companies creating their own blockchain infrastructure find ways to address this issue.

Lack of Specialized Workforce

The lack of awareness of the blockchain technology and a limited number of experienced technical specialists make blockchain adoption challenging.

Yet, blockchain ecosystem developers are working to remove this barrier. Speaking of genEOS, the platform intends to provide not only pre-designed tools for Dapp development but also its team’s assistance in every project.

Final Thoughts

Despite the blockchain weaknesses and challenges, Dapps can improve OSS/BSS processes in telecom by making them secure and traceable in real time.

Blockchain opens up such opportunities as hack-proof IoT connectivity and sustainable 5G technology.

Blockchain-based platforms like genEOS are built to address blockchain challenges.