How Blockchain has Reshaped the Telecommunication Sector

Telecom Tech Outlook | Wednesday, December 01, 2021

Blockchain-based smart contracts, or contracts that execute themselves upon the fulfillment of agreed-upon clauses, can be used to automate telecom service providers' billing and payment processes. The majority of subscriptions are based on contracts that charge the user based on usage.

Fremont, CA: Blockchain and telecommunications are collaborating to reduce losses due to fraud, automate revenue collection, and enable peer-to-peer payments.

Following its mainstream popularity in recent years, blockchain has seen a steady increase in application, either as proof-of-concept or pilot projects. While the banking and financial services industry was the first and most obvious field of application for this technology, blockchain can be used to revamp any process that would benefit from increased decentralization, security, transparency, and immutability of data. As a result, blockchain adoption has spread beyond finance and into other industries such as healthcare and agriculture. The telecommunications industry is one that stands to benefit greatly from blockchain adoption. The use of blockchain in telecom can help improve telecom services and create entirely new business models.

Blockchain in the Telecom Industry

Revenue Collection Automated

Blockchain-based smart contracts, or contracts that execute themselves upon the fulfillment of agreed-upon clauses, can be used to automate telecom service providers' billing and payment processes. The majority of subscriptions are based on contracts that charge the user based on usage. Telecom operators can use blockchain to keep a transparent record of network usage and accept payments directly through automated transactions enabled by smart contracts. This simplifies revenue collection for the operator while also making the payment process more convenient for customers.

Peer-to-Peer Payments

Many telecom networks are already experimenting with digital wallets, which allow subscribers to make small payments without the hassle of using cards or carrying cash. With the global population's growing preference for mobile payments, despite concerns about fraud and cybersecurity, the inclusion of blockchain in mobile payments will be a welcome change. Telecom companies can host entire payment ecosystems on their existing infrastructure while benefiting from a platform business model. These peer-to-peer (P2P) payment platforms can be used by businesses to accept payments for goods and services as well as to transfer funds between individual users.