Blockchain in Telecom

Blockchain in Telecom

Telecom service providers have historically closely-held the end-to-end telecoms value chain for both customers and businesses but the Blockchain in Telecom can change it all for the better. The Telecommunication chain consists of network infrastructure, provision of core voice and data connectivity, and connected client services However, in an atmosphere of heightened competition in a digital world infrastructure light over the top (OTT) players, have settled their dominance even in the most vital communication services. WhatsApp and Viber already account to approximately 80% of all messaging traffic, and Skype represents around one-third of all international voice traffic minutes besides decreasing revenues from voice and increasing prices due to the high bandwidth demands, there is a need to both reduce costs and find new sources of revenue.

In addition to the numerous use cases being explored for industries like finance, healthcare, supply chain and government, there are plausible applications of blockchain for TeleCommunications service providers. Now we will explore how blockchain can enhance the telecom industry now, and what opportunities will it create in the nearest future, alongside the rise of 5G cellular mobile communications and the internet of things.

  • Roaming

    Blockchain will solve the old downside of operators to integrate high-cost systems and supply access/authentication settings for sanctioning roaming calls across networks and operators. Blockchain can sanction complex datasets across multiple parties, in real-time with high trust and security, significantly for establishing subscriber identity.

  • Smart connection

    With the assistance of Blockchain in , device connections may be provided to multiple local hotspots and WIFIs depending on permission and adherence to some terms and conditions. It additionally helps with automatic generation of billing amount and payments.

  • Identity Management

    Blockchain in Telecom has the potential to exclude any kind of fraud that involves identity theft, therefore reducing the telecommunication revenue losses, and guaranteeing security for the customers. Blockchain is often accustomed to recognize a device and link that device to a subscriber’s identity. Instead of broadcasting the customer’s identity to the net, the device-generated public key is broadcasted instead. In such a case, neither the carrier nor any other third party needs to know the private key. Blockchain can help to protect private information that is heavily encrypted in the private key. The private key is associated with only one device, so the data theft probability is dramatically reduced.

  • Smart Transactions

    Telecommunication enterprises may leverage blockchain to modify micropayments for music, mobile games, and different varieties of such services. Moreover, blockchain could also be enforced for customer-to-customer cash transfer services. Airtel, one of the leading telecommunication companies in india offers digital wallets that enable customer-to-customer payments. By using blockchain to handle the transactions, Airtel makes its wallets safer with ID verifications. Furthermore, such an approach results in cheaper international remittances, more swift and convenient transfers which, as a result, has a positive impact on the company’s revenue.

  • Telecom Operations Automation

    Blockchain and smart contracts will produce a great deal of automation in internal processes, like billing, roaming and supply chain management. Currently, the transactions in telecom ledgers need to go through a clearinghouse to be approved. Smart contracts will modify this method and make it automated with the guarantee of settlement between the participants, by routing from one operator’s blockchain to another operator and increase transparency to the end customer. The roaming subscriber initiates a voice call on the telecommunication network. The transaction is then recorded on the blockchain network and once the call ends, the call time span is saved on the blockchain platform. Based on the smart contract rules, the charges are set, and the payment is registered from the home operator to remote partner.


Telecom business nowadays faces the challenge of erosion margins. There is a high pressure to chop down the price and simultaneously adopt service innovations. Blockchain is the right tool to not only usher in service efficiencies and innovation, however conjointly keep a check on dishonest practices.

The blockchain is an advanced technology that can make an enormous contribution to the telecommunications industry. It has the potential to boost security and make further sources of financial gain for telecommunications enterprises. Although adopting blockchain in Telecom may cause a number of issues, for example conforming to existing data standards in terms of both structure and transport of information could become an obstacle. Furthermore, telecom companies need to define regulatory frameworks to implement smart contracts in their business practices.

Nevertheless, adopting blockchain is worth the cost. Smart contracts will exclude the need for clearinghouse intermediaries and steeply decrease the accounting costs. With blockchain, telecommunication enterprises can avert roaming and identity fraud, that is one of the main origins of monetary losses within the telecommunication industry. Most significantly, blockchain can become an integral part of future communications, along with the 5G network and IoT.