For the telecom sector, blockchain could be a real game-changer. Analysts expect the blockchain telecom market to reach $677.66 million by 2025, growing at a CAGR of 28.3% during the forecast period. This growth will primarily be driven by the increasing adoption of 5G, which could become a catalyst for widespread blockchain implementation.
Fraud detection and prevention: Although developments in 5G are changing the face of the telecom sector, enabling faster and high-quality communications between users, it is also paving the way for increased instances of telecom fraud, which can cost the world $32.7 billion annually. Blockchain sets the foundation for effective and timely fraud detection (and prevention) for telecom service providers – especially with a focus on roaming users. By bringing down fraud detection and resolution time, blockchain verifies the authenticity of every transaction in the network, helps in calculating the exact billing amount based on the services rendered, and enables instantaneous verification via smart contract terms.
Simplified processes: Telecom operators often struggle with streamlining roaming processes, with issue resolution timelines sometimes shooting up to several weeks. Blockchain allows telecom companies to simplify these processes via real-time monitoring. Using blockchain, they can set thresholds to easily identify issues or breaches, plan for their resolution, and also bring down the time and costs of disputes.
Enhanced authentication: Blockchain also allows telecom operators to set up high levels of identity and authentication mechanisms to prevent subscriber identity fraud and associated data breaches. By encrypting identities via secure sign-ups and logins, the technology can instantly detect false stolen or missed identities as well as attempts at data manipulation – thus allowing telecom operators to safeguard the authenticity of digital transactions.
Increased transparency: Another appealing aspect of blockchain technology is the degree of transparency it brings. The traceability of information means no transaction or service can be unduly modified. The level of transparency that blockchain brings adds a degree of accountability, allowing telecom companies to safeguard privacy and control over data, whilst increasing transparency and efficiencies in transactions.