How Blockchain is impacting the Telecommunication Industry


Telecommunications service providers are openly accepting the disruptive power of Blockchain technology in their systems. block chain has the power to overcome the challenges that the telecommunications industry has been facing for some time.

Some of the well-known companies and universities, such as British Telecom, Huawei, Samsung, Verizon, etc., have obtained patents on blockchain telecom solutions.

The impact that Blockchain can have on the telecommunications industry is extensive and therefore worth looking into. Of these companies mentioned, some like Huawei hold most of the essential 5G patents and are actively working on enabling 5G worldwide.

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Naturally, the first impact of Blockchain in the telecom industry that Deepak talks about is the enablement of the 5G network.

First and foremost: enable the 5G network

For the realization of ubiquitous 5G access through various networks, communication service providers will need to handle different access nodes and various access mechanisms. Selecting the fastest access node for each user or machine will be a central challenge for the telecommunications industry in the future.

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3GPP (LTE, GPRS) and non-3GPP (WiMax, WLAN, WiFi) access networks in a given area can be networked through a blockchain where each access point (WiFi router, SP cell tower, etc. ) can serve as a node in the network monitoring the devices. The service provider can accept a new device on the network and the nearest access point can provide service to the device.

Prevention of roaming fraud and subscriber identification and the provision of e-Sim
In 2021, the total amount of telecommunications revenue loss due to fraud is estimated to be 2.22% of revenue or $39.89 billion. A shocking 28% increase compared to 2019, which was about $11.6 billion.

These frauds are mainly related to subscriber identification, data roaming charges, etc.

Blockchain can be implemented to improve the authentication aspect. The advantages of multiple and decentralized blockchain storage are robustness and trust. Additionally, Blockchain can also minimize the costs of fraud detection applications while reducing fraud losses.

The public-private cryptography inherent in a blockchain can be used to identify a device and link that device to a subscriber’s identity. Instead of sending each user’s unique ID on the cellular network, a public key can be generated from a private key stored securely on the phone. Neither the carrier nor any other third party needs to know the private key.

The ‘eSIM’ solution can help protect private information that is encrypted in the private key. The future would not only be on a more secure network, but it would also be sim-less as no physical sim will be required. Thus eliminating the cost of manufacturing a sim.

Minimize location inaccuracy

In a mobile communications network, if GPS signals are weak, the location of the mobile terminals and the verification of the authenticity of the location broadcast by other nodes are difficult.

A method of cell positioning, as described in patent number CN107172586A can minimize this inaccuracy. With this method, the relative locations of the terminals can be stored in a Blockchain, whose blocks can be considered as trusted nodes of a consensus mechanism; and users can accurately position their own location information on the network.

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Facilitating the Internet of Things

The IoT network carries extremely sensitive data from a company’s core assets, including customer information. This makes data and network security a necessary but expensive pillar of IoT connectivity.

Using a large enough number of nodes, a blockchain can enable secure and error-free peer-to-peer (P2P) connectivity for thousands of IoT devices with cost-effective, self-managed networks. These blockchain network nodes can be represented by individual embedded IoT sensors with the ability to verify every block that is changed within the blockchain.

Machines within a manufacturing plant will be able to communicate and authenticate through the blockchain to direct production processes.

Phone theft prevention

In case of phone theft, the phone locking process today is manual and can only be done by the mobile phone or network operator. Additionally, telecom providers have limited capabilities to detect a stolen device, as they rely on a global carrier database that needs to be updated regularly.

With blockchain, communication service providers can store unique device/SIM data along with customer profiles, instantly lock the stolen device, and also inform any third party about the status change. In addition, the operator of the client’s country of origin can present an FIR and store it in the blockchain network. This would allow telecommunications operators around the world to detect stolen devices.

In addition to many other challenges, one of the main problems that telecommunications industry expensive today is generating income. The telecommunications industry has been losing a small average revenue per user over the years in almost every region of the world. Blockchain can change that.

With technological innovation, enhanced security, transparency, data immutability and control, Blockchain will completely change the business model of the telecom industry.

Companies like AT&T, Huawei, etc. they have already taken a step forward towards the fusion of Blockchain technology in the telecommunication industry. Blockchain is sure to bring a lot of changes in the industry, changes that the telecom industry has been waiting for a long time.

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