Telecom industry today has the most complex operations framework, involving many partners, vendors, customers, distributors, network providers, VAS providers. There are a lot of trust issues and transparency challenges due to the involvement of multiple entities, and no clear mechanism to track end-to-end activities of every entity.

Challenges faced by Telecom Industry Today

Roaming Fraud: Roaming fraud occurs when a subscriber accesses the resources of the HPMN (Host Public Mobile Network) via the VPMN (Visited Public Mobile Network). The HPMN is not able to charge the subscriber for the services provided while on roaming, but is obliged to pay the VPNM for these services. This occurs due to lack of real-time availability of call data to HPMN.

Identity Fraud: It happens when a subscriber uses another subscriber’s identity to use telecom services. There are cases where identity proofs submitted by the subscriber have blurred photographs and illegible data, but they still get approved without appropriate investigations. There is no mechanism to verify the customer based on a universal database. Each network provider maintains its fraud database to identify potential fraud attempts. But these datasets are confined to a network and are not freely available across all the network service providers. This limits the telecom companies to verify the identity in an efficient manner

Co-ordination issues: A lot of information flows across networks, partners, vendors, distributors, customers with no real-time transparency. For example, there are instances where a customer complains about activation of VAS on his number without his knowledge or approval. The customer has to pay the extra charges as there is no evidence. Similarly, there are issues related to billing which cannot be verified.

Lack of Automation: Telecom industry faces inefficiencies due to lack of automation. For instance, today there is no mechanism to automatically handle bandwidth and increased connectivity based on the device. Telcos build LPWAN (Low Power Wide Area Network) to cater to devices that require lower bandwidths and power consumption, which adds to infrastructure set up and running cost

Telecom Industry Use Cases

Internal processes: The processes such as OSS (Operation Support System) and BSS processes (Business Support System) such as billing and number portability databases can be streamlined using blockchain. The interest groups can validate billing without hassle, using an intercompany blockchain shared among customers, VAS providers, VPMN, HPMN and telecom companies. Also, a migrating customer can be quickly on-boarded on network after receiving a porting request, if receiving operator shares blockchain with porting customer’s operator

Roaming: Blockchain can solve the age old problem of operators to integrate high-cost systems and provide access/authentication settings for enabling roaming calls across networks and operators. Blockchain can enable complex datasets across multiple parties, in real time with high trust and security, particularly for establishing subscriber identity.

Smart connection: with Blockchain, device connection can be provided to multiple local hotspots and WIFIs based on permission and adherence to certain terms and conditions. It also helps with automatic generation of billing amount and payments

Smart transactions: Blockchain has enabled purchasing of digital assets, including music, mobile games, gift cards and loyalty points.

Mobile money: Blockchain has enabled cost effective international remittances across the globe with very minimal transaction charges. Telecom operators can become global remittance providers

Identity management: Operators could develop identity management tool that can be used across organizations, devices and applications

Way Forward

Blockchain solutions are instrumental in enabling interoperability between internal as well as external systems for telecom companies. This can bring down infrastructure as well as compliance cost, and save operators from roaming/identity fraud. Telecom industry today, is faced with the challenge of eroding margins. There is a high pressure to cut down the cost and at the same time adopt service innovations. Blockchain is the right tool to not only bring in service efficiencies and innovation, but also keep a check on fraudulent practices.