Telecommunications companies connect people via cable or wirelessly over the phone and the Internet. The telecommunications industry is outdated because it is based on a Subscriber Identity Module (SIM) card developed in 1991. The good news is that the SIM card is gradually being replaced by the eSIM card, which is a digital chip that does the same job.
But just being comfortable with the comfort and quick installation provided by the new generation of cards is not enough – this is why telecom companies are turning to blockchains, and blockchains know how to handle data in the right way.
Both providers and subscribers are struggling to cope with roaming, high fees, fraud risks, privacy issues and more. Decentralization may be the key to solving these problems after exploring possible solutions. This article will discuss the role of Blockchain in Telecommunications
Telecommunications without Fee
In a capitalist society, very few things are free. However, some telecommunications providers have proposed a communication mode in which subscribers are not only free but even rewarded. This idea may be exposed due to digital advertising. In essence, subscribers become token holders, do not need to pay a penny for mobile services and data, and telecom companies earn revenue from advertising.
Travel without Roaming
In addition to the unnecessary high fees, roaming is something that most people don’t want to spend. Travelers’ fees abroad increase because they usually have only two options: buy a prepaid local SIM card or turn on roaming. There is no doubt that this problem has a blockchain-based solution.
Telecommunications company Bubbletone is developing a private blockchain for mobile operators and service providers to allow direct interaction with users and eliminate global roaming. The team launched Global Coverage, a platform for participants to request and offer, and operators can distribute SIM cards between clients – allowing them to upload local mobile profiles through encrypted SMS messages or data channels to purchase service packs. All of these are used at their local price for their existing SIM card.
IBM has released a code pattern that also provides a solution for roaming. The idea is not to eliminate costs, but to “avoid disputes between the parties concerned”, which may be caused by mobile service billing.
The decentralization of mobile and data services eliminates the boundaries between countries and provides users with communication opportunities that are consistent with the trend of globalization. This model should be more effective than the usual travel prepaid plan because the acquisition cost is reduced and the average revenue and lifetime value of each user will increase.
In recent years it has been shown that users are increasingly concerned about the security of their data (or in other words, their privacy). It is said that large social media companies sell user data, and people are increasingly aware that they let the Internet know about themselves.
The encrypted messaging service is not new. International giants such as WhatsApp, Telegram, and Viber are leaders in the field. However, the blockchain takes privacy to a new level: the private key does not allow third-parties to access any other person’s messages, making the user’s activities completely invisible.
Unused Data Trading
It is always difficult for us to waste unused products. Unlike dairy products, mobile services should not have an expiration date. Therefore, another use case for blockchain in telecommunications is the transaction of unused data. According to research by Ericsson Consumer Labs, “consumers are increasingly aware of the amount of unused data they leave each month,” which means there must be a choice that can benefit from the remaining leftovers.
A telecommunications company called Dent claims its mission is to liberate mobile data by creating a marketplace for buying and selling data packets. A feature of its application can exchange data that is not used by the user.
Fraud Detection and Prevention
According to Deloitte’s research, telecom companies lose $38.1 billion annually due to fraud schemes. Most telecommunications fraud occurs when people use fake identities to purchase services or are vulnerable to attacks while roaming.
The blockchain implementation may change this: the mobile device will be associated with the owner’s identity, but will not broadcast the international mobile user identity, but instead use the owner’s public key. The carrier or any other third party does not need to know the private key.
Related: Discovering Insuretech: Blockchain damage to the insurance industry
At the same time, by implementing an allowed blockchain between each pair of operators with roaming agreements (ie, restricting the chain of chains that can access the chain and trade on it), the risk of fraud during roaming can be reduced. Whenever a subscriber takes action on the Welcome Network, a small contract and agreement terms are signed.
Internet of Things Data Transmission
The Internet of Things (IoT) refers to the time when your dishwasher and garage door communicate with each other more frequently than your close relatives. This means that multiple devices interact over the Internet and the risk of some stranger devices disrupting communication is very high. Dishwashers may not have any secrets, but, for example, medical devices and lockboxes connected to the Internet of Things often handle sensitive information. No one will want it to be exposed to outsiders. Here, the blockchain can create a safer environment for data transmission, which still belongs to the telecommunications field. In addition, blockchain helps reduce the costs associated with IoT maintenance.
Iota is an open source digital ledger designed to provide machines with free microtransactions and data integrity. The company provides a secure and scalable solution for the unlicensed machine economy.
Huawei is a major telecommunications company that has developed an IoT connection management platform to ensure “a complete connection between people and things.” The company provides edge computing IoT and narrowband Internet of Things, which is more important than data transmission reliability. The situation is more matching. Its speed. These bring a wider range of coverage, lower data rates, cost and power consumption, and an average revenue increase per user for different industries.
Secure Mobile Payments
Even if mobile operators are still down-to-earth and do not support blockchain solutions, paying bills over the Internet is still a choice for many. The blockchain allows for secure transactions, which is why so many payment services are based on distributed ledger technology.
Beluga Pay is a startup focused on blockchain instant payments. The service allows users to pay and pay in legal currency, cryptocurrency or bee whale’s BBI token. Another blockchain-based cryptographic payment platform, Utrust, guarantees complete buyer protection for the purchase of goods and services.
In addition to providing mobile, television, telephone and internet services to individuals, Switzerland-based telecommunications provider Swisscom also designs and hosts distributed ledger solutions for enterprises. The aim is to help drive the diversification of the industry forward through their expertise in the field.
Although the implementation of the blockchain still faces significant resistance to the promotion of payments, the space for improvement in the telecommunications industry is almost limitless – if anything makes it more efficient, faster, cheaper and safer, that is Blockchain.