Blockchain @ Telco
How blockchain could impact the telecommunications industry and its relevance to the C-Suite
Blockchain is currently one of the most widely-discussed and hyped technologies. There are not many industries that shouldn’t be either excited or worried about its potential, with use cases, proof-of-concepts, and fullfledged businesses based on blockchain technology emerging at an increasing pace.
How Blockchain could impact the telecommunications industry? Download the report "Blockchain @ Telco" to get the answers
The technology carries the potential to disrupt business models in many industries, including telecoms, and can increase transparency and efficiencies in the process. However, blockchain applications are young and evolving and complementary industry-wide standards are most probably still a few years away. Nonetheless, to avoid disruptive surprises or missed opportunities, strategists, planners, and decision-makers in the telecom ecosystem should take the time now to investigate applications of the technology in both core and adjacent operations and business functions. Early familiarity with related opportunities and challenges will position them better to gain advantages in terms of revenue growth and cost reductions when the technology is mature and ready for wider adoption.
Four use cases are discussed in the report, which are built around a blockchain's key characteristics as enablers for more reliable, tamper-proof, and failure-resistant applications:
- Fraud Prevention
Fraud detection and prevention continue to be topics of relevance for most CSPs, as a result of fraud costs in the industry of over USD 38 billion11 annually. Given that the telecoms industry has not yet found a way to effectively and sustainably prevent fraud, blockchain is in principle a good contender for significantly decreasing the cost of fraud e.g. in roaming and in identity management.
- Identity-as-a-service and Data Management
CSPs can create new sources of revenue by providing identity and authentication as well as data management solutions to partners, enabled by a blockchain.
- 5G enablement
5G technology implementation is another example to potentially benefit from the blockchain to streamline processes. To realize the 5G promise of ubiquitous access across various networks, CSPs will need to handle heterogeneous access nodes and diverse access mechanisms. Selecting the fastest access node for every user or machine will be a central challenge in the future. Blockchain can enable a new generation of access technology selection mechanisms to build sustainable solutions.
- IoT Connectivity
A blockchain can enable secure and error free peer-to-peer connectivity for thousands of IoT devices with cost-efficient self-managed networks. For example, machines within a manufacturing plant will be able to communicate and authenticate themselves via the blockchain to steer production processes.
To find out more about the Use Cases download the full report (PDF).
The Deloitte Blockchain Institute provides our customers with experts on the subject of blockchain and supports them in dealing with the pressing questions and business challenges arising from the emergence of blockchain technology.