fbpx
Connect with us

Telecoms

Blockchain technology in telecoms looks to grow even further

Inside Telecom Staff

Published

 on

Blockchain technology

The Blockchain technology Market in the Telecom Industry was valued at $157.9 million in 2020 and is expected to reach $2759.8 million by 2026, registering a CAGR of approximately 61.45 percent over the forecast period (2021 – 2026).

The onset of the pandemic has highlighted the criticality of telecom infrastructure. The global health emergency is placing new pressures on telecom services and suggesting a key role they can play beyond simple connectivity in emergency scenarios such as this.

Beyond the coronavirus pandemic, the world is expected to see substantial interest in new fintech services as the growing demand for virtual and online services continues to build. Within the telecommunications industry, the pandemic is driving the need for expanding digital infrastructure and data-driven services. Telecom companies are now increasingly focused on network resiliency and reliability, particularly in 5G investments.

Increasing adoption of 5G is a catalyst for blockchain implementation in telecom, as 5G is helping in quick and reliable blockchain operation.

Blockchain technology provides strong encryption to record and store the data on the network in a more secure and verifiable way. It makes the information transparent and tamper-proof.

Blockchain technology is expected to help various telecom companies boost their network security and reduce their operational costs.

Telecommunications or telecom fraud is a fast-growing field of criminal activity. According to Europol’s European Cybercrime Centre and Trend Micro, telecom fraud costs $32.7 billion annually to the world.

It represents a new challenge for law enforcement agencies. Blockchain can help in fraud detection and prevention for communication service providers.

Scalability and interoperability are the factors necessary for blockchain adoption. This is only possible when industry standards are set, which is at a lagging phase right now. The Telecom sector is struggling with mass adoption of blockchain technology.

Key Market Trends

Smart Contract to Dominate the Market

Smart contracts allow computer code to execute on its own when specific conditions are met. In the telecom industry, it is expected to witness significant adoption as it provides scope for automation in its internal operations, like billing, supply chain management, and roaming.

Deploying smart contracts to manage all of the billing related to roaming can lead to significant cost savings, as it provides prevention against fraudulent traffic. Blockchain can also add value to identity management solutions, as it can cut out intermediaries through smart contracts.

This helps in the reduction of roaming frauds, cost savings, and instant settlements. It helps telecom players to resolve disputes quickly through tamper-proof verifiable transactions and real-time updates to end customers.

Currently, transactions within the telcos ledgers go through a clearinghouse to be authenticated. However, the adoption of smart contracts can automate this process leading to the elimination of post-processing, which saves time for the companies. Furthermore, in doing so, telcos also save money by spending less on auditing and accounting as the process is automated.

Asia Pacific to Witness the Highest Growth

The region boasts tremendous potential for the market, primarily owing to the growing prominence of mobile payments in countries, such as India and China. India, specifically after the demonetization scheme, has been witnessing a lot of telecom operators shifting toward this model.

For instance, Jio and Airtel, the country’s leading telcos, offer their digital wallets to enable customer-to-customer payments. Thus, the adoption of blockchain to handle the transactions by these companies could make their wallets more secure and cheaper.

China Mobile, China Telecom, and China Unicom have joined the CAICT’s Trusted Blockchain Initiative, which will use blockchain to bolster operations and security in the industry. The companies are expected to focus on blockchain-based apps that relate to IoT data sharing and customer identity verification.

Further, as the world is currently embroiled in privacy debate over WhatsApp’s policy changes, India’s communication platform as a service (CPaaS) industry has been gearing up for the adoption of end-to-end encryption of commercial mobile SMSes, emails, and all other types of business communication between the enterprises and service providers.

We’re a diverse group of industry professionals from all corners of the world. Our desire is to provide a high-quality telecoms publication that caters to an international market, offering the latest and most relevant telecoms information to businesses, entrepreneurs and enthusiasts.

Telecoms

BT, Microsoft partner to enhance voice calling

Hala Turk

Published

 on

London-based telecom provider BT partnered on Thursday with Microsoft to enhance enterprise voice calling, security, and industry-focused services in various sectors. 

The new agreement will allow BT to switch its global managed voice services to the cloud and deliver them directly through Microsoft Teams. 

Microsoft’s Operator Connect plan, that supports telecom operators adding their calling plans to Microsoft Teams, will help the British partner to create new business models and revenue streams. 

According to Microsoft’s blog post this deal “paves the way for the development of revolutionary new cloud-based products and services for BT’s voice customers and the wider telecoms sector.” 

As for cybersecurity part of the deal, the pair will work together to build and launch a new generation of managed security services that will enable and secure the modern collaborative workplace. 

The British provider will team up with the U.S. tech giant to create unique security propositions to protect clients’ operations in the cloud as well as its own IT infrastructure. 

“BT and Microsoft are at the forefront of innovation in global digital platforms and connectivity that will take technology and communication beyond limits,” Bas Burger, CEO of Global at BT, and executive sponsor of BT’s partnership with Microsoft said in a joint statement.  

“This partnership will ensure all of Microsoft’s solutions work ‘Best on BT’ and support both companies’ commitments to improving digital skills in the community,” Burger added. 

In parallel, Omar Abbosh, corporate vice president of industry solutions at Microsoft, considered the partnership as the “start of an exciting, shared journey of innovation and collaboration that will shape the future of telecoms.” 

Abbosh further explained that BT can use Microsoft’s cutting-edge tools to develop new communications services that meet the needs and demands of today’s customers. 

It is worth mentioning that the number of users of BT’s managed Microsoft Teams collaboration service has almost doubled during the past 12 months, according to the pair. 

Continue Reading

Telecoms

5G drives Chinese mobile service to rise at 3.1% in 2026

Hala Turk

Published

 on

Chinese mobile service revenues are expected to grow at a compounded annual growth rate CAGR of 3.1 percent from $131.3 billion in 2021 to $152.7 billion in 2026, according to a study published on Thursday.  

London-based data analytics company, GlobalData published a study showing that the mobile data revenues will witness a rise in its CAGR reaching 6.8 percent due to the growing adoption of 5G services, followed by the rise in data Average Revenue Per Unit (ARPU). 

“5G subscriptions will surpass 4G subscriptions in 2023 and go on to account for 73.8 percent of the total mobile subscriptions share in 2026, driven by the ongoing 5G network expansion by operators and increase in the availability of 5G-enabled smartphones,” said Harika Damidi, Telecoms Analyst at GlobalData. 

In parallel, findings indicate that the average mobile data usage is expected to increase from 9.9GB per month in 2021 to around 32.6GB per month in 2026, as a result to the mounting consumption of high-bandwidth online entertainment and social media content over smartphones. 

However, data revealed that the mobile voice revenues are supposed to drop at a CAGR of 5.2 percent between 2021 and 2026, due to falling voice ARPU levels. 

Damidi explained that the increase in penetration of Internet of Things (IoT) and M2M services are also expected to drive market growth during the forecast period. 

The analyst further highlighted that two state-owned companies had led the Chinese telecom market in terms of mobile subscriptions last year.  

Damidi said that China Mobile ranked first followed by China Telecom, explaining that China Mobile “is making strategic investments in 5G base stations, data centers, industrial Internet, and IoT to ensure its leadership.” 

It is worth mentioning that, in 2020, China mobile generated a revenue of $118.8 billion, in comparison China Telecom’s $60.91 billion during the same year according to Statista.  

Continue Reading

Telecoms

Indian Telco Reliance Jio adds 3.5 million users in May

Hala Turk

Published

 on

Indian telco Reliance Jio added 3.55 million wireless subscribers during the month of May, acquiring the highest rank in the telecom industry for four consecutive months. 

Despite the overall wireless subscriber base drop throughout that month by 6.27 million, Jio outperformed its fellow Indian telcos Bharti Airtel and Vodafone Idea. 

Both providers lost 4.61 million and 4.28 million subscribers, respectively. 

As per data shared by the Telecom Regulatory Authority of India Trai, Jio’s wireless subscriber base increased by 0.83 percent to reach 431.23 million.  

In contrast, Bharti Airtel’s base declined by 1.31 percent to 348.29 million.  

Similarly, Vodafone Idea’s wireless user base was down 1.52 percent to 277.62 million. 

In terms of wireless broadband users, Jio’s base stood at 431.23 million, followed by Airtel at 189.49 million and Vodafone Idea at 119.63 million.  

Industry experts believe the loss in user-base is mainly due to the lockdown and reverse migration to villages. 

Various states across the country were under lockdown in May to reduce the spread of the coronavirus. The decision resulted in labors heading back to their towns. 

Additionally, several workers are thought to have discontinued their mobile subscription. 

Despite these factors, Jio was able to add subscribers due to its strong offline retail network at the micro-level. Also, the company was able to sell JioPhone to a good number of customers, many of whom have come from rivals Bharti Airtel and Vodafone Idea. 

Moreover, Reliance Jio’s fiber optic project deployed in 2018, enabled it to add around 200,000 wireline broadband users. 

It is worth mentioning that the Indian telco partnered on Thursday with Oppo to field test Jio’s standalone 5G networks. 

Continue Reading

Trending