Blockchain App Development in the Telecom Industry

Published : Dec 26, 2020

telecom blockchain

  • Blockchain technology is gaining enormous traction in the world. We want to look at blockchain app development solutions in the telecom sector, the possible fields of use, what the leaders are doing, and where Oodles will assist its customers in the future.

    Blockchain-based systems are now increasingly emerging to challenge the way transfers are made, authenticating customers, and conducting payments. One of the first sectors to first embrace the technology was Fintech. In virtually any sector, though, there are diverse possibilities. We will see the consequences and prospects present in the telecommunications sector in this article.

    Telecom Challenges

    Roaming, high rates, risk of fraud, privacy concerns and so much more are struggling for both providers and subscribers. Decentralization (which is one of Blockchain's main fundamentals) may be the key to solving certain problems after exploring potential solutions.

    Organizations are searching for creative new approaches to reduce underlying costs and enhance the sustainability of companies. We look at a couple of the telecom industry's modern pressure points and why they should look at Blockchain as a future-oriented tech intervention:

    Network Infrastructure

    Telcos are diverse and require major ventures and investments in infrastructure. Nearly all telecommunications companies have experienced the establishment of the 4G/LTE network and we still have 5G to push them to update again by the time they reap benefits.

    Systems of Support for Business/Operations

    Existing technology is not collaborative, stubborn, and secure. They have often contributed to bad consumer service, leading to leakages and procedure inefficiencies, have a poor implication on profit & loss statements.

    Increasing Price Wars

    Price wars have spoiled the end consumers with the slurry of new-age telecom companies hitting the market. We are looking at underused data, messages, SMSs from nearly all users, with service providers having to almost unanimously send ample free calls and data bundles to customers.

    Increasing Fraud

    Communication Service Providers (CSP) lose ~ USD 40 bn per year due to fraudulent practices, according to a study issued by Deloitte.

    Also, Read | Implementing Blockchain in Telecom for Digital Transformation

    How Blockchain Applications can Help Telecom Evolve?

    The sharing economy and decentralization, which is one of the key features of the Blockchain method, can solve the core solution to this issue. Land infrastructure, for instance, is not owned by all utility providers, but by a handful. To prevent restoring costs, companies get together and use the same thing. The underground system for the internet in India was developed by Tata and Reliance, which is used by almost all other organizations.

    Similarly, as we addressed the current usage of internal structures, we look at an environment that is deeply siloed, rigid, and complex. In the future, we will need Blockchain to help remove middlemen if we plan to reap gains from interdependent teams working on this ecosystem. Therefore, Blockchain can be used to carry related usage cases such as inter-carrier settlements, carrier modifications, and successful MNP in processes such as quote to currency.

    For customers, Blockchain will allow "Anything as a Service." Imagine if there is an auction where one client sells unused data and another client wants to sell a free bundle of calls? This Blockchain-powered market would work directly within the telecom organization's millions of subscribers to ensure maximum use of the resources of a telecom.

    Also, Read | Blockchain-Based SmartPhones: The Next Revolution in The Cell Phone Industry

    Blockchain Use Cases in Telecom

    When it launched, companies began to board the 4G/LTE train. The expenses were significant, and the ROI barely made it. Competition is very high anyway, and so you have highly invested competitors who can bleed the competition to death. For companies, it is all but natural to begin sharing the latest infrastructure costs.

    The word "sharing economy" presents its problems and complexities. The standard, in this case, is several suppliers and contracts.

    Blockchain allows a level playing field for telecommunication players thanks to its decentralized features and openness.

    Blockchain will allow instances of use in which telcos would bypass intermediaries in inter-carrier settlements, avoid roaming fraud and portability processes for mobile numbers. By building successful supply chain processes, it can also overcome process inefficiencies. Another use case is fraud detection, which Telcos rely on Blockchain to help cater to. We will look at substantially decreasing the cost of fraud in roaming and identity protection by using Blockchain.

    Blockchain Applications


    This is another excellent use case for several telecom providers currently in use. Blockchain can be used by telecom organizations to make these payments for OTT services such as payment wallets, music applications, gaming, etc. These services will result in positive sales for the service provider, along with user-to-user monetary conversion services, and thus have a positive effect on the business.

    Smart contracts

    Blockchain automation of internal operations. We should look at practices such as billing, roaming, and control of the supply chain. The latest transfers work by ledgers that need to be certified by a clearinghouse. By using Blockchain, by forwarding from one user's Blockchain to another operator and increasing accountability to the end-user, Smart Contracts will simplify this process and guarantee the transaction between the participants.

    Assume that a customer works on the phone network during roaming and dials out. Blockchain logs and stores this exchange (from the call pick up to the call termination) on the distributed network. Further, smart contract integration with specified business terms and associated costs automates payments and other contractual activities. A -Z accountability guarantees the credibility of the contract.

    How Current Telecom Infrastructures use Blockchain?


    This multinational telecom giant is part of a community of mainstream companies collaborating with IBM, using Blockchain to add transparency and efficacy to systems that have been transformed. IBM maintains this project by establishing confidence in suppliers, effectively linking every organization's suppliers via a shared Blockchain. First, the provider would need to prove itself in the network by history and authentication tests. Then, they can deal with the expected organization.

    Bharti Airtel

    Telecommunications organizations are using blockchain technology to facilitate micropayments for music, mobile games, and other value-added services. Airtel, which provides digital wallets that make transfers from customer to customer. Airtel guarantees that the digital wallets are more secure with ID authentication by Blockchain managing the transactions.


    Over time, DLT and intelligent contracts may become commonplace. They can simplify cumbersome business procedures and can become key agents in the telecoms industry for transformation. This is because, specifically for inter-organizational workflows, they allow more efficient business processes. Eventually, in multiple organizational systems, they can apply to enterprise process engineering/re-engineering. Connect with our blockchain experts for more information.

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