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BLOCKCHAIN | BUSINESS |
The Telecommunications industry likes to do a lot of business and are looking for opportunities to generate more revenue with new services. The nature of business done by this industry demands the incorporating of Blockchain technology into their system.
The telecom industry is going through a period of transition with many disruptive trends. The saturation and heavy competition in this industry are slackening its growth & revenue, and the telecoms have reacted with an increase in merger and acquisition activities paving way for bigger conglomerates.
With customers changing with the advent of new technologies, and competitors bettering their services, the option to choose providers has become wider than before. In turn, providers are hard pressed with the need to embrace technology to live up to customers’ expectations of the level of service.
Challenges in store
The two major challenges faced by these companies are the slow growth in revenue due to saturation and the heavy competition. While companies are topping up by expanding their reach and businesses with cloud computing, IoT and related technologies, they also need to contain the implementation cost to ensure profitability. These companies need to streamline their operations and make it efficient enough while ensuring good customer experience. Retaining a customer is less expensive than getting a new one. Introducing new technologies will incur a lot of expense. To reduce their network expenses these companies are looking for newer and cheaper ways using cloud computing and virtual network services.
Benefits of blockchain
Some of the benefits of using blockchain in the telecom industry are its reduced cost of operation, reduced risk and reliability. These factors are achieved through the streamlining of internal processes, providing services built on blockchain within the system and through collaborations within the business ecosystems.
The streamlining of internal processes is aimed at improving internal efficiencies and for interacting with suppliers and other associates. The supply chain efficiencies can be improved through shared data across a secure and transparent blockchain node. Telecoms finance much of the equipment and services they provide and blockchain will improve the efficiency of commercial financing by sharing data in a secure and transparent manner which can scale down disputes.
By providing services built on blockchain the supply chain can be managed well to ensure fast payment and settlement processes. They can help with identity management as they have access to customer data and blockchain being the basis of this with trusted data. Besides they can easily incorporate value added services like mobile payment, eSIM activations etc. which can help promote business. Some common issues like fulfilling roaming contracts, generating reports and settling payments can be completed without any hassles as a decentralised trusted identity can enhance customer engagements.
There is no looking back once trust is gained. These companies can collaborate in business ecosystems by being a trusted partner by involving in peer to peer transactions and similar deals, which could lead the company to the heart of many processes like content distribution, digital advertisements promoting business models and value creation across different companies.
The key characteristics of blockchain help effective collaboration in a business network. The attributes of a shared ledger, smart contracts (processes programmed to be executed with transactions), privacy, trust and transparency impact the participants involved in the network boosting business as never before.