According to a report published by the Research and Markets firm, blockchain technology will help the telecom sector generate $1.37 billion by 2024 through streamlining different departments in the telecom industry.
Just like the way blockchain has revolutionized how business is done in other areas such as energy, information technology, health care, education, and government so will it in the telecom industry.
For the telecom sector, blockchain will help reduce the overall operational cost, improve security together with bringing transparency through simplifying how business is done in the telecom sector.
Furthermore, per findings from Research and Markets analysis through blockchain the challenges created by complex operations framework, VAS providers and customers, partners, distributors, network providers, and vendors will be eradicated through its implementation.
Driving Force of Blockchain Implementation into the Telecom Sector
Although the primary goal of integration blockchain technology into the existing telecom industry is to help improve service delivery and increase revenue generation, 5G implementation, high demand for fraud management systems together with rising security concerns are forcing the application of blockchain technology.
Moreover, besides helping in the above, it will help the sector unlock untapped opportunities in the industry. In addition to all the above, the increase in the number of blockchain companies is helping spearhead the implementation of blockchain technology into the telecom sector. Per the publication, the number of blockchain based firms has increased from 27 in 2017 to 60 in 2018. Among the new entities include Carrier Blockchain Study Group (CBSG) and Hyperledger.
While it will streamline the sector at large, blockchain will help telecom stakeholders foster security systems in place, make info transparent and tamper proof. Furthermore, it will help increase interconnectivity through connecting all peers into one.
Similarly, its algorithms will provide robust encryption systems for recording and storing data. The latter will also provide a secure channel to access the data. While the publication talks about how blockchain can be implemented, several firms are already working on blockchain solutions for implementation.
Some of the firms working on blockchain solutions include German Telecommunication Company doing a project with SAP, Tech Mahindra working with Microsoft, IBM working with several Indian telecom firms together with the Telecom Regulatory Authority of India (TRAI) and Spanish telecom company Telefónica, which is also working with IBM.