Telecom companies need to capitalise on the next billion-dollar blockchain opportunity, says analytics firm GlobalData.
For this, telecoms must adapt their networks and train personnel to take advantage of blockchain capabilities, ranging from the elimination of hated roaming fees to accelerating the broad availability of connected device services like drone deliveries.
Of late, blockchain is generating many headlines, mostly related to cryptocurrencies like bitcoin and the prospect of a new paradigm for fully secure transactions.
Market projections point to a billion-dollar telecom blockchain market in the next five years. Looking ahead, consulting stalwart Accenture sees the potential for a US$1-trillion (32.8 trillion baht) global telecom blockchain ecosystem.
Even with the wide variance in market forecasts, there is a broad industry consensus that blockchain will grow significantly and play a powerful role in transforming the telecom business model and overall industry.
Operators on a global scale are gearing up to capitalise on a variety of blockchain capabilities. Several of them are far along in testing blockchain to address immediate opportunities such as eliminating widely loathed roaming fees.
Major operators such as BT, Colt, HGC Global, Telefonica and Telstra are already engaged in high-profile blockchain trials aimed at accelerating the settlement process of their wholesale services.
Verizon is financially backing blockchain specialist Filament with the goal of using blockchain to ease the use and payment of connected device services such as drone-based deliveries and monitoring.
"Through blockchain-enabled direct communications to SIM cards, mobile operators would love to offer their voice and data services to international travellers visiting coverage areas," said Ron Westfall, a tech analyst at GlobalData. "The operators benefit by accessing a vast new customer base of travellers while also avoiding costly integration into third-party systems or spending heavily on upgrading inflexible legacy systems as well as building new complex systems."
Operators, however, have traditionally struggled to sell anything beyond voice minutes and data bytes. Blockchain requires a level of technical know-how and marketing sophistication that will not come overnight.
Telecoms must show they can use these ongoing blockchain trials to quickly deliver new services and features, Mr Westfall said. They need to hire and train personnel that understand blockchain technology and adapt their networks to take advantage of distributed ledger capabilities.
The evidence indicates some operators will be ready to use blockchain-enabled capabilities like initiating widespread elimination of roaming fees towards the end of 2018.
In the longer term, and if done correctly, the ramifications for the telecom market are immense, as operators as well as their customers and partners stand to gain significant customer experience and financial gains from blockchain-powered, fully-trusted and streamlined communications and transactions, Mr Westfall said.
