How Blockchain will Change Telecommunication
- Sigma Telecom
- Apr 6, 2022
- 2 min read

The telecom industry is looking for new ways to innovate and compete with every emerging technology. Companies are trying to find and adapt new technologies to be more efficient and customer friendly. One of the new technological breakthroughs that can help telecommunications companies revitalize and future-proof their businesses is how blockchain will change telecommunication.
As we enter a new era with 5G, telecom companies are focusing on how to keep up with the changes in the market. Blockchain comes into play to transform the business of Communication Service Providers who want to streamline their operations, create opportunities for new business models and reduce costs.
Blockchain will Increase Security in Telecommunications
Blockchain is a system that can increase security in many new generation communication systems. 5G technology is one of the great examples of how blockchain will change telecommunication. For example, in 5G technology, smart contracts can streamline provisioning between networks and the end user with a blockchain-based solution. By applying dynamic rules and contracts between these networks, blockchain can also provide discounted rates or better connections. For 5G to be implemented securely, the data received by connected devices must be reliable and free from malicious interference. To enable 5G to reach its full potential and protect against large-scale security breaches, blockchain can provide tamper-proof, decentralized and real-time verification of data transmission.
At the same time, customers' sensitive personal information is stored with a third party, inefficient management, and risk of fraud or hacking is one of the problems that blockchain can solve. In response to possible breaches of user data, some telecom networks are considering integrating blockchain. This means that customer identities are stored in a decentralized, tamper-proof ledger with no single point of failure rather than a third party. It is also a technology based on cryptography by its very nature and therefore inherently immutable and unbreakable. This enables providers to increase security as well as reduce both legal costs and brand damage associated with data breaches.
Making Automation Easier
Telecom providers are using blockchain to lower data roaming fees and create smart contracts that can be executed without human intervention. Smart contracts can run payments automatically in real time and allow settlement systems to verify and approve usage data exchanged by mobile operators to provide roaming services to their customers. Then, if it doesn't find any errors during the verification process, it calculates the fees in real time. Customers benefit from a transparent, automated experience and companies can reduce costs and increase efficiency.
Many telecom organizations invest in automation to avoid manual processes in Service Level Agreements and use smart contracts on the blockchain to clarify the terms of SLAs and make monitoring more transparent. Smart contracts also allow payments to be automated upon completion of agreed terms. For example, if a customer is out of service for a period of time, they will automatically receive a discount without having to make a claim.
Telecom providers can also use blockchain to have all providers access the same information to speed up the mobile number porting process. Blockchain technology can help ensure this information is reliable and secure, allowing network providers to provide a seamless, cost-effective service to their customers.
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Blockchain is set to revolutionize the telecom industry, enhancing security, efficiency, and automation. By integrating technologies like Zert, telecom providers can further streamline their operations. For instance, using smart contracts to automate processes and ensure data integrity will significantly reduce costs and improve customer experiences. As blockchain continues to evolve, adopting platforms like Zert will be crucial for telecom companies looking to stay competitive and innovative in this rapidly changing landscape.