Blockchain technology garnered the attention of the tech community with the advent of Bitcoin in 2008. Most people still confuse blockchain as a cryptocurrency because of its link with Bitcoin, but that’s not true.
Initially, bitcoin was introduced to the public with the underlying features of immutability and distributed ledger, meaning transactions made on the network are non-erasable. These features are attributed to blockchain industry, which has found several use-cases, spanning various industries—healthcare, supply chain management, retail, and finance. And blockchain industry has grown by leaps and bounds in this time and is expected to reach $39.7 billion by 2025.
The telecom industry has found use-cases of the technology too.
The telecom industry has entered into a highly competitive space. This means the more a company can save money, the better services it can provide. Blockchain offers an opportunity for telecom companies to put their bookkeeping work– billing, charging, roaming, value-added services, and other manual processes on automation.
This can be done using digital ledgers that record details of customers, which can be easily processed further using robotic automation. This will save man-hours and reduce the cost of operations.
Offer new value-added services
Blockchain will allow telecom companies to offer new value-added services, such as online games, music, e-commerce, etc. at small –scale installments. Using blockchain will eliminate third-party like banks to cater to customers’ needs for the monetary transaction, which can be easily catered to by telecom companies themselves. This will open a new stream of revenue for telecom operators.
Digital identity confirmation
Blockchain can keep a decentralized record of customer identity. The immutable and decentralized nature of blockchain makes storing identity information secure and safer than traditional methods, including violation of privacy. This will allow telecom companies to automate their customer identity processes. As telecom companies begin to provide monetary services to customers, decentralized customer identification databases will come handy. Make KYC more seamless and efficient. Companies like Civic now offer the customer identification process.
Digital wallets already exist in the industry. Blockchain will reduce the dependence of telecom companies on third-party services to cater to their user payment needs. The use of blockchain will allow telecom companies to accept payments, saving money in the process.
Digital advertising is highly inefficient in the current scenario. The ginormous amount of customer data available to telecom companies allows them to step in digital advertising and transform it forever.
According to eMarketer, digital advertising spending is expected to increase to $172.9 billion in 2021. What’s more, digital advertising is rife with challenges and transparency is the biggest demand that advertisers seek right now. Provided that 56% of online ad clicks account for fake or off-target customers (source), transparency is a natural choice for advertisers. If anything, this is a golden opportunity for telecom operators to innovate in this area and pull their dwindling cash flow.
With the help of blockchain and customer data, telecom companies can offer marketers a more targeted approach to reach their customers and allow customers to choose who should reach them and when. In a way, blockchain gives telecom companies the power to change digital advertising in an unprecedented way.
The telecom industry is a highly competitive space now. Users switch from one operator to another in a flick of a moment. For operators to retain existing customers, acquire new customers, and reduce costs, they need to innovate. Blockchain provides an opportunity for the operators to innovate and move ahead. Not to mention, the application of blockchain will reduce significantly for the telecom operators.
As the worldwide mobile penetration, which stands at 41.5% in 2020, increases, the competition among telecom companies will be fierce. Implementing blockchain at all levels will perhaps be a game-changer, no?