Even if you are not a technology geek, you must have heard about the fuss surrounding blockchain. This decentralized system is often associated with cryptocurrencies, but there are many ways in which it can be adjusted to make Internet services faster, smoother, and more secure.
Blockchain is currently introduced in finance, healthcare, gaming, insurance, governance, and other spheres. Telecommunication companies, including communication service providers (CSPs), can also benefit from blockchain, particularly in terms of customer service and security.
Blockchain can simplify processes, improve collaboration, and provide real-time transparency, significant cost savings, and unprecedented data privacy.
Let’s analyze how blockchain can help telecom companies in boosting their performance and competitive advantage.
1. Addressing Fraud
Telecom companies constantly look for more advanced fraud prevention strategies. Blockchain may help save money by offering sophisticated security measures.
For instance, it can help address roaming fraud – a common type of fraud in telecom involving the use of the Visited Public Mobile Network (VPMN).
Blockchain can help detect fraudulent activity faster and more efficiently, allowing telecom companies to charge for the consumed services.
In addition, blockchain can help with the subscription identity fraud. Fraudsters often use someone else’s ID to access telecom services for free.
Another example is the use of stolen identity information to purchase a SIM card in the victim’s name. Although some telecom companies create databases to identify and prevent such cases, they cannot address all of them due to the complexity of keeping track of the enormous amounts of customer data.
Blockchain can also help in identifying a device and link it to a subscriber’s identity, thus eliminating the very possibility of data theft.
2. Using 5G Technology Effectively
As telecom companies are gradually switching to 5G, they will need to select the fastest access mode for each device and customer, which may be highly challenging. Blockchain can allow for safe and fast access to the Internet.
Its smart contract technology makes it easier for telecom providers to manage rules and agreements between various networks and charge for the provided services.
The main benefit of using blockchain, in this case, is the possibility of adjusting the local connection prices flexibly depending on the supply and demand, which may help decrease costs for users.
3. Pursuing IoT Connectivity
Telecom companies are facing the necessity of finding the ways to provide timely and high-quality services to different devices, which is expensive and technologically challenging.
The main problem is that IoT sensors carrying sensitive private information about the users are not appropriately protected.
Blockchain offers decentralized control over the network and ensures secure verification and validation. It helps in preventing the use of unauthorized devices and abuse of personal data. Blockchain technology allows secure mesh networks that enable the interconnection of IoT devices reliably.
Australian telecommunication company Telstra has already leveraged blockchain to support the functioning of smart home IoT ecosystems, so other companies will likely follow to provide intelligent solutions and remain competitive.
4. Tapping into AI’s Potential
Artificial intelligence (AI) is another area where the blockchain and telecom industry can successfully interact. Blockchain can improve companies’ ability to generate and share reliable data while allowing AI to make more accurate, evidence-based decisions.
AI-based applications used in the telecom industry can thus provide more reliable services. Moreover, blockchain offers unprecedented secrecy, anonymity, and security, making AI immune to cyber-attacks and data breaches.
Blockchain technology is the future of telecommunication. It can make telecom services faster, cheaper, and more reliable and protect companies and customers from cyber attacks and data abuse.
Blockchain makes all activities transparent, thus eliminating fraud, enhancing the use of 5G, and increasing IoT connectivity. This technology can also enable the introduction of AI solutions that will eventually change the face of telecom.