Blockchain technology in the telecommunications sector: part 3 (readers' forum)


Editor's Note: Click here for Part 1 and here for Part 2 of this three-part series on blockchain technology in the telecommunications industry. The first six blockchain telecom applications are covered in part 2.

Blockchain applications in the telecommunications sector

7. Blockchain in roaming management

These telephony services are provided by their network remotely, while they remain outside the home network, recovering it through a different network service provider (VPMN). Mobile operators suffer the consequent fraud losses due to the ever increasing number of IRSA cases (International Revenue Share Share). Often Telcos outsources the transmission of C / EDR files and its conversion in billing traffic based on the individual subscription to the third party, called DCH (Data Clearing House).

The authorized blockchain can replace conventional methods of sending C / EDR. All communications service providers (CSPs), who have concluded a roaming agreement, can transmit C / EDR on the authorized blockchain network.

The authorized nature of blockchain allows only authorized access to the network, so there will be no possibility of invading data. The Hyperledger blockchain limits the transfer of unwanted blockchain blocks to the designated node of VPMN and HPMN acts as a miner to verify the authenticity of the data transmitted on the blockchain network. Whenever a request to start an event is started by a roamer, a transaction with all the details about the C / EDR data is transmitted over the network. Because the transfer of communications occurs at runtime, HPMN can calculate the billing amount for each subscriber and also the payment to VPMN on the runtime itself (in the traditional system, the long time required for HPMN does not allow roaming detection of fraud before it occurs, there are more technical difficulties for the prevention, detection and automatic response to the initiation of actions against fraud.

Blockchain can solve the long-standing problem of integrating high cost systems of traditional operators and provides authentication access / settings to enable roaming calls on networks and operators. This allows for a certified and smooth settlement transition between HPMN and VPMN, without fear of fraud. [19659005] Moreover, in the blockchain scenario, since the C / EDRs are transferred via the blockchain network via broadcasting, then it makes irrelevant the ru ol of DCH. It helps telecommunications save even more because this process does not require an intermediary.

Blockchain can enable complex data sets on multiple parts, in real time with great reliability and security. Blockchain allows complex data sets across multiple parts and PoC has shown that blockchain can be used to reduce the amount of time required for verbal agreements between carrier carriers from hundreds of hours to a few minutes. It implies the implementation of a bilateral blockchain that records and reports the transactions to a public blockchain. Smart contracts are used to resolve disputes, settlement transactions, offsets and evaluate C / EDRS.

8. Blockchain in support for the Internet of Things

Applications for IoT devices include smart cities, smart homes, connected cars, connected vehicles, smart agriculture, smart entertainment and much more. There is no doubt that this list will grow further in the near future. Frost & Sullivan predicts that by 2020 the smart city market will reach $ 1 trillion. It is anticipated that there will be 200 billion connected devices by 2020, which could increase the likelihood that devices are vulnerable to attack.

Additional hardware challenges (such as Longevity …), the main elements in the development of IoT devices are Connectivity, Privacy, Compatibility and Security.

The current ecosystem for IoT is highly centralized and relies entirely on the Internet for any type of communication between connected devices, making it extremely vulnerable if security is not a priority. Traditional systems are subject to different points of failure such as packet loss, cloud interoperability problems, single point of failure … etc.

Blockchain provides a dynamic and secure peer-to-peer distributed network solution through the use of nodes that can be represented by embedded IoT sensors that verify that each block is captured in a real-time monitoring system for IoT systems. [19659005] With the implementation of blockchain technology in the IoT ecosystem, the Centralized model can be replaced by Distributed Digital Ledger (DDL) for all transactions, making the self-managed peer-to-peer network extremely secure. .. that overcomes some of the IOT challenges.

9. Blockchain for money transfer and micro payments

In addition to basic telecommunications services, the VAS and OTT services are the two main types of services that consumers get by availing themselves of.

  • VAS is a non-core service to add value to the service offerings of the entire telephone company. They are provided by the operator himself or by an external third-party provider.
  • OTT services are beyond the control or responsibility of telecommunications companies. They only carry IP packets from source to destination through their network. The user is free to use the OTT services because everyone is independent to use the Internet the way you want. Telecommunications companies must integrate VAS and SDP to provide these services to consumers.

VAS content or OTT services can be debited and subscriptions can be grouped with telecommunications service offers. In all these collaboration models, telecommunications companies invoice the use of consumers and reimburse VAS or OTT suppliers for the proposed contents, after having maintained their share. The IP packets of the VAS or OTT services flow as the basic services offered on the telecommunications network.

Deep Packet Inspection (DPI) is the technology used by telecommunications companies to segregate these packages. DPI allows telecommunications companies to read and scan the payloads of each packet, unlike only the headings in old techniques, in execution time, so the decision on how to classify and control the traffic on the network was made based on applications , contents and subscribers origin and destination.

With the implementation of blockchain technology in the micro-payment network, not only transaction costs will be reduced but will result in an effective billing at runtime and the validation processing of any transaction.

Micropayments may have a blockchain network hosting a recent scalable protocol called & # 39; Raiden Network & # 39 ;. This protocol can handle over a million transfers per second without incurring problems such as latency (requiring operators to pay suppliers before billing consumers), packet loss, inability to manage IP packets efficiently, interconnection problems, OTT bypass and other problems of vulnerability of traditional concepts that generate huge loss of revenue for operators.

Regarding the aspect of money transfer, Blockchain has enabled economically advantageous international remittances worldwide with very low transaction costs. Telecommunications operators can become global remittance providers.

10. Blockchain for smart transactions and revenue streamlining

Blockchain has enabled the purchase of digital assets, including music, mobile games, gift cards and loyalty points. Likewise, blockchain-based services have begun to tick, trying to be the first to break down emerging market trends with a superior customer experience.

Some wireless applications, for example, offer a service that allows users to buy furniture or send data

Other telecommunications pioneers blockchain (like Qlink ….) are building their infrastructure to provide tools such as sharing wi-fi, mobile data and enterprise-to-peer services.

Smart Contract is one of the features offered by blockchain, which has the inherent nature and potential for substantially increase the efficiency in many areas of business and law.

11. Blockchain in billing

Current systems still have to solve some major problems due to technical limitations arising from:

  • Improper integration of network elements: synchronization between HLR and BSS that generates revenue losses …
  • Introducing new products: Whenever telecommunications announce a new product, the OSS / BSS system together with core network elements must communicate well on new price plates …
  • 39. Incomplete use / consumption: due to changes in technology trends, data load and complexity …
  • Scalability problems.
  • Processing speed: ability to process the remaining balance / billing transactions at the evolving speed of the network / Internet (eg: 5G)
  • Vulnerability of revenue losses in billing for post-paid customers.

With blockchain technology:

  • In the main network, switches and various registers can be inserted into the blockchain network. It will help the switches to retrieve all consumer information in real time. The blockchain node of the OSS / BSS systems, which allows perfect synchronization with switches and registers.
  • All nodes will function as a miner on this blockchain network and when a consumer raises any subscription or cancellation request from any service, that request will be put on the blockchain network by BSS and the switch nodes and registers will update consequently through their nodes. Each consumer status update in one of these systems will be transmitted in blocky network at runtime and other systems will maintain full synchronization with this information at runtime.
  • For both prepaid and postpaid scenarios, the inherent run-time processing capability of blockchain enables companies to provide consumers with visibility into the status of consumption for any subscriber service for … and this at any time and from anywhere … avoiding consumer billing / overriding credit limits, account wedges, etc.

The main improvements (from traditional systems) are seen as the same information that is updated and automatically synchronized in BSS and registers, eliminating any possibility of vulnerability and loss of revenue. Thus, if BSS has canceled a consumer's subscription for a particular service, the home position register will also cancel the subscription to that service to take advantage of that particular service and vice versa. The same is processed for a consumer subscription to a service. The main problem of generating revenue or losses will be solved by blockchain implementation as consumers are billed correctly for each service they use. This not only improves the efficiency of the telecommunications service but also improves the overall customer service experience.

The OSS / BSS segment is expected to hold the highest market size as the blockchain will address concerns in asset inventory management, service security, network management, product management, management orders, revenue management and customer management.

12. Blockchain that replaces the SIM card?

The SIM card, one of the staples of cell phones, is facing obsolescence while Blockchain solutions offer significant improvements. With the help of new concepts like blockchain, tomorrow's smartphones may seem familiar, but their technology will be a huge leap forward for a long time.

While other hardware-based storage tools have switched to digital technology, much the same video games have moved from cartridges to digital downloads: the SIM technology remains essentially the same as when it was created. Now, its dominance has been questioned by the eSIM technology, which was implemented for the first time by Google. With the help of blockchain, it is bound to hit the broader market and make a great success.

Blockchain-enabled citizen is uniquely and securely identified around the world and uses IDs to register for Telco services. You can choose a voice plan from CSP-X, a data plan from CSP-Y and video streaming from CSP-Z, and so on. Complete freedom of choice to choose CSP packages and offers on a single eSIM ID (compared to the scenario of multiple traditional system SIM cards). And this, for any duration (single prepaid package, hourly / daily / monthly subscription, etc.). ESig set-up / provisioning and blockchain technology will offer options (various services, bundles, etc.) from any CSP / user choice / location …. a significant revenue stream that still creates substantial profits for CSPs.

The Taiwanese firm HTC has announced the world's first smartphone with blockchain known as Exodus. Being a blockchain technology device, this phone will be the first to have decentralized applications and security (July 2018). Blockchain technology should provide greater security with high-level encryption tools, as well as the ability to connect to superfast networks to ensure fast transactions.


Given the importance of the trillion dollar industry and its control under the hand of a few, it makes it necessary to stop the interruption of distributed blockchain technology.

Blockchain is currently paving the way for telecommunications innovation and is changing the economic social landscape of digital communications worldwide. It is able to meet the most important needs of telecommunications to make their service offerings flexible according to the demands of market changes.

Blockchain technology can solve the high pressure of telco to reduce costs, allow new revenue streams, improve service efficiency and even control fraudulent practices while allowing for an "experience" superior customer. It eliminates the traditional complex and long chain of related operations that work together to provide services to customers.

Being a decentralized technology, blockchain completely eliminates the role of expensive infrastructure and the need for central authorities or intermediaries. It increases the speed and efficiency of the digital exchange of data between people, departments and provides faster, more efficient and uninterrupted transmission of information.

Blockchain seems instrumental to allow interoperability between internal and external systems for telecommunications companies. This can reduce infrastructure and compliance. Blockchain has the potential to destroy business models by increasing the transparency and effectiveness of the telecommunications network and its processing. Blockchain decentralized accounting fully documents every transaction that occurs on a distributed or peer-to-peer, public, private or hybrid network.

Furthermore, blockchain (recognized as reliable technology) plays an important role in many areas that systems are technically limited to solve, such as the convergence of services, real-time transactions, and industry integration, [19659005] Use of 5G capabilities, Internet of Things (IoT), Augmented Reality (AR), Virtual Reality (VR), Machine-to-Machine (M2M), Problems related to overabundance of contents, Data traffic explosion, Mobility, Security and many others … where devices connected to the Internet automatically orchestrate their interactions

The use of blockchain-based applications by the telecommunications industry is gaining momentum and will eventually become the norm. Time is tight.

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