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How Blockchain Technology Can Transform Telecom Industry

Explore how blockchain technology can transform telecom industry

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How Blockchain Technology Can Transform Telecom Industry

How Blockchain Technology Can Transform Telecom Industry

Greetings from Bitdeal!

Hope the title have given you an idea about what we are going to see in this article!.  Yes, Today we are going to discuss about the concept “Blockchain In Telecom Industry” . We already know that Blockchain have started to transform many industries like banking, SCM, Fashion, Food, Medical and so on. That’s why we have discussed a very important concept in previous article, which is about “Blockchain in healthcare”.  Now let’s discuss how Blockchain technology can transform telecom industry.

In this article you will learn,

1. Overview of telecom industry

I. The Leading Players in Telecom Industry India

III. Revenue model of Telecom Industry

2. Existing problems in Telecom Industry

3. How Blockchain could be used in telecom industry?

i. Blockchain use cases in telecom

4. Network providers who adopts Blockchain technology

5. How bitdeal can help Tele-networks in Blockchain implementation?

Telecom Industry : Overview

Let us choose Indian market place for better understanding about the topic.

When compare to other marketplaces, The number of people using smart phones and mobile internet is found to be very huge in India, That’s ‘why we have choose India and its network services provider for better understanding.

There are several reasons for this growth,

1. People are getting improved educationally

2. People understands the necessity of smart phones and mobile networks

3. Government also understands the need for Tele-Network

4. Digital India Plan have boosted the growth of Network usage

5. The arrival of new and free network services providers (like Jio)

6. Arrival of high speed networks (3G,4G,5G)

7. Comfortable pricing plans and combo services

8. Booking , payment and other online transactions requires mobile network

Like this we can list out a plenty of other reasons. So all these factors, brings up an unbelievable result.  i.e) the number of mobile internet users in India is about 358.46 million people (2018) This would increase in count furthermore, so as of 2021 the count will be nearly 462.26 million.


I. The leading Network Players: Telecom Industry

When compare to other countries, Indian telecom sector is found to have a big competition, after the arrival of Reliance Jio, the competition have became like a bull run. Yes with the free network services, JIO have gained 50 million users in just 83 days of its launch, and have gained 100 million subscribers in the end of 2017.  Based on the market share and customer base,  the list ascends as follow.(As of May 2018)

1. Airtel

Yearly Revenue: $15 Billion

Shared Ownership: Bharti enterprises and Sing Tel (64% and 36%)

Market  Share: 24.85%

Customer Base: 303 Million

2. Idea

Yearly Revenue: $5.5 Billion

Shared Ownership: Aditya Birla and Axiata (64% and 36%)

Market  Share: 16.83%

Customer Base: 200 Million

3. Vodafone India

Revenue: $6.6 Billion

Ownership: Vodafone Group plc

Market Share: 18.20%

Customer Base: 208 Million


Revenue: $5.1 Billion

Ownership: Government of India

Market Share: 11%

Customer Base: 100 Million

5. Reliance

Revenue: $3.5 Billion

Ownership: Reliance ADAG (90%) and SSTL (10%)

Market Share: 0.06%

Customer Base: 12 Million

6. JIO

Revenue: $800 Million

Ownership: Reliance Industries

Market Share: 15.31%

Customer Base: 186 Million

See more at : Top 10 Telecom Companies in India: 2018 Overview and Analysis

II. The Revenue Model of Telecom Industry

The common business model of the telecom industry “Connecting peoples through calls, Messages and other services . This is what we know, but none of us know what techniques they are using to generate revenues.

1. Cost per Minute ( Acquiring charge of connecting STD,LOCAL, ISD calls per Minute)

2. Subscribers Retention  - (Frequent calls about Offers, Free services, Extra plans and etc)

3. Reaching the Rural People ( To extend the network growth)

4. Revenue through Internet connectivity services

Apart from the other two, the second one is seems to be weird one. Because in this case, network service providers collect our personal data’s like our DOB, Shopping details, Online Booking details, and etc. So based on this acquired data they used to give most appropriate offers and services in order to pull back to their business funnel.

For in-depth understanding of  telecom industry revenue model Read this article : Indian Telecom Industry – Redefining Business Models

2. Problems & Challenges in Telecom Industry

Telecom industry is never gonna be like as today, it will keep on improving with updated technology and network services. When you compare the industry potential in 1996 with now, you may be end up with a jaw dropping result.  In this industry there are several things are involved, The role of government, Customers feedback, TRAI Regulations, Cloud network, Tarrif plans, Changing high speed network technology, Mobile number portability , Increasing competitors, Enlarging network in rural areas with proper Tower implementations, Fraud preventions and etc.

Top 5 challenges

1. Tele-networks have to decentralize the entire Purchasing and Selling Powers

2. Supporting With AI( Augmented Reality, Speech recognition, supporting with digital assistants like siri in Ios Devices)

3. Implementing 5G Network

4. The growth Of IOT

5. Reliable, fast, High quality and secured connectivity to networks


See more at : Top 5 Challenges in Telecom Industry

All the above are just a sample apart from this there are several challenges in telecom industry, but with the help of Blockchain we can achieve a secure, reliable , fast and decentralized network connectivity

3. How Blockchain can be used in telecom industry?

Current telecom industry is under centralized concept, it doesn’t guarantees the privacy of the user, Security breaches are often happens, and it is very easy for a novice hacker to easily hack a network.  But the arrival of Blockchain with decentralization can transform the entire telecom infrastructure.

By capitalizing this technology in telecommunication industry, it will ensure the balanced move towards into various aspects such as network enhancements, Operation Cost reduction, ROI, CSPS(communication service providers) competition growth and OTT( Telco-Over the top)

Blockchain Opportunities and its USE CASES In Telecom Industry

1 . Fraud Management

The estimated fraud loss of telecom industry in 2017 is about $40 billion

Blockchain have potential to reduce two main types of frauds, the first is roaming fraud and the second one is identity. Blockchain links both the device and the user identity so that it will impact every services associated with that subscriber’s identity.

Roaming fraud will occur whenever a subscriber access any of the resource in HPMN(Host Public Mobile Network), through VPNM(Visited Public Mobile Network ) ,but the HPMN can’t able to charge the subscriber for provided services.

The roaming fraud comes in two characteristics:

· By Longer detection time

· By Longer response time

By implementing permissioned Blockchain between network operators we can eliminate the frauds. Whenever a subscriber tries to trigger an event by entering into a network, there will be a execution of smart contract and other agreement terms will be executed between the roaming partners.

2. Identity management

With the help of Blockchain telecom industry can create new sources of revenue through data management and identity authentication solutions. Services operators can provide identity management tools that can be only accessible through organizations, specific devices and other apps.

3. Can be used in 5G enablement

Blockchain supports the implementation of 5G network and provides a common platform with seamless connectivity.

4. Can be used in IOT connectivity

The Centralization concept can be replaced by DDL (Distributed Digital Ledger) for all the transactions, which will make an extremely secure peer-to-peer decentralized network …. Which will overcome the major IOT challenges?

5. Can be used in Blockchain in Revenue insurance

Blockchain plays a role in the revenue insurance. It can be used to help design more leakage proof Storage Management, Real-time revenue observations , Fraud elimination, and etc

6.  Can be used In Blockchain In Number Portability

if receiving service operator shares Blockchain with porting customer’s operator,

 Then the customer who wishes to migrate to another network can be quickly on-boarded to the desired network after receiving a porting request.

7. Can be used In Blockchain In roaming management

The restricted or permission  blockchain implementation can replace the conventional ways of sending C/EDRs. All the communication service providers who have undergone roaming agreement, can broadcast C/EDRs on permissioned blockchain system.

8. Can be used In money transfer an micro payment systems

9. Can be used Smart transactions and revenue streamlining

10. Can be used in Billing

4. Network providers who adopts Blockchain technology

In India, three major telecom leaders found to be adopting Blockchain technology very soon.

Airtel, Vodafone India, and Reliance JIO have initiated this process, where as Vodafone is in the POC (proof of concept) stage.

Whereas Airtel is in initial stage and are doing R&D process.

And Reliance jio have setup a separate team to work and integrate Blockchain technology with the help

Readmore here : economictimes

5 . How bitdeal can help Tele-networks in Blockchain implementation?

We bitdeal - A Blockchain Development Company having separate team and have separate Offshore development center in India, with the concern of developing, custom Blockchain applications. We already initiated to cover many industries with our Blockchain solutions, now we are in the focus to provide services for telecom industry. With 120+ expert Blockchain developers with proper development and quality output.


Hire our Blockchain Developers


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