Telecom firms are leveraging IoT and Blockchain technology to catalyze telecoms transformation, modifying the way CSPs (Communications Service Providers) function.
Blockchain partnered with the global expansion of the Internet of Things (IoT), generates an immense potential for analyzing and sharing information across sectors. As devices gradually become more connected, IoT data analytics are adopted widely to harness monetization opportunities to drive profit margins. Blockchain has made it easier for telecommunication companies to transact.
According to IDC predictions, global investment in Blockchain would mount up to approximately $2.9 billion by the end of 2019. Investors are looking for the speed, agility, efficiency and advanced level of security that this technology offers, along with other benefits. IBM named ‘greater transparency’ as the primary benefit of using Blockchain, which is of paramount importance for the telecom industry. Top telecom providers adopt IoT and Blockchain technology for more accurate, consistent, and transparent functionality.
Blockchain enhances trust due to a shared view of secure data improving coordination between partners. This enables telecommunication providers that upgrade their digital functions to Blockchain to eliminate the third parties, significantly saving costs, providing incentives with higher profit margins. The ‘problem-solving’ nature of Blockchain makes it lucrative for telecom. In telecoms, Blockchain is majorly applied to identify difficulties, fixing them more quickly and accurately. In addition to greater functional efficiently, IoT adoption creates a holistic view of the telecom company’s growth. Leading telecom firms are entering into partnerships that allow outsourcing of complex management of Blockchain.
Meanwhile, the development of interconnectivity between IoT devices like smart vehicles and surveillance cameras has prioritized the requirement for big data management. Telecom units now team up with IT service providers and leading Blockchain platforms for expert support to comprehensive solutions.
In 2018, Gartner predicted that over 20 billion connected devices would be in used by the end of 2019, putting service providers in a race to tailor their strategies, data services, building their telecom infrastructure. The oncoming 5G rollout and evolution to smart cities, founded on device inter-connectivity, will push this number further. The expansive nature of 5G network architecture raises security vulnerability questions that Blockchain attempts to resolve. Customer service providers are majorly leveraging Network Functions Virtualization (NFV), disaggregated the software from hardware.
The telecommunication industry is currently in the midst of a transformation with Blockchain, and IoT is the key pillar in this journey. This transformation continues to evolve as other related sectors also seek to convert to the Blockchain platform and standardization, with big data dominating as a primary function for all communications service providers. Developing progressive strategies, including the use of Blockchain for processing a large amount of data, allows the telecom industry to revert to closer customer relations. This makes their services more responsive and reliable. The introduction of 5G networks opens doors to even greater connectivity between devices, and IoT will remain as a primary function in the digital world as interconnectivity continues to grow.