Blockchain for Telecom Industry is one of the most widely discussed and hyped technologies. There are not many industries that shouldn’t be either excited or worried about its potential, with use cases, proof of concepts, and full fledged businesses based on blockchain technology emerging at an increasing pace.
The technology carries the potential to disrupt business models in many industries, including telecoms, and can increase efficiencies and transparency in the process.
Early familiarity with related challenges and opportunities will position them better to gain advantages in terms of revenue growth and cost reductions when the technology is mature and ready for wider adoption.
CSP Value Chain and Blockchain
Communications service providers (CSPs) have traditionally owned the end-to-end telecoms value chain for both consumers and businesses spanning network infrastructure, provision of core voice and data connectivity, and related consumer services.
However, in an environment of higher competition in an increasingly digital world from infrastructure light over the top (OTT) players, together with decreasing revenues from voice and increasing costs due to the high band-width demands, there is a need to both reduce costs and find new sources of revenue.
Fraud prevention and detection continue to be key topics of relevance for most CSPs, as a result of fraud costs in the industry of over USD 38 billion 11 annually. The telecoms industry has not yet found a way to effectively and sustainably prevent fraud, blockchain is in principle a good contender for scientifically decreasing the cost of fraud e.g. in roaming and in identity management.
When a call or event is placed, the Visited Public Mobile Network (VPMN) queries the Host Public Mobile Network (HPMN) about the services to which the roaming user has subscribed, by querying the Home Location Register (HLR). The Call Detail Records (CDRs) are sent to the billing systems in their respective networks.
The VPMN sends CDR information to the HPMN as a Transfer Account Procedure (TAP) file. Certain companies act as a DCH (Data Clearing House) for these files. A DCH is responsible for the conversion and transmission of the TAP files on behalf of the CSP which has hired it.
Blockchain has the strength to reduce losses due to fraud and minimize costs for fraud detection applications.
Subscription Identity Fraud
Current system Subscriber identity information is necessary to create new account and assign services to the subscriber.
Subscription ID theft occurs when a subscriber uses wrong identification or another subscriber’s ID to obtain services. Fraudsters can for instance utilize the stolen identity information to obtain a SIM card in the victim’s name.
5G technology implementation is another instance of potential benefit from the blockchain to streamline processes. To
realize the 5G promise access across various networks, CSPs will need to handle heterogeneous access nodes and diverse access mechanisms.
Selecting the quickest access node for every user or machine will be a central challenge in the future. Blockchain can allow a new generation of access technology selection mechanisms to build sustainable solutions
- A blockchain empowers trust improves coordination between various partners, due to a shared view of transactions and liabilities. This permits the elimination of third parties, resulting in revenue savings.
- Facilitates a unique view of data instead of the need for consolidation across various disparate systems. Also allows
for easy audit trails due to the history of all transactions being available in the ledger.
- Implementation of smart contracts in roaming and Cases allows for near-instantaneous charging, thus leading to improved revenue assurance and fraud reduction.
- Potential to facilitate business models for revenue generation for CSP who are looking for new avenues to increase both top and bottom lines.
- A blockchain can act as the General ledger that enables, for instanve, an M2M economy to prosper based on the common platform available, in which M2M transactions can be recorded.
As industries as diverse as telecom, healthcare, banking and real estate have continued to embrace blockchain technology, Locus IT has made it a key priority to remain on the cutting edge of its advancement. We provide Blockchain Technology services and also Enterprise IT online Training, Enterprise IT Staffing, Enterprise IT Support and enterprise-class implementation solutions for platforms, protocols.