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Blockchain heats up

Blockchain is moving beyond the hype as communications service providers report they are spending on deployments and proofs of concept.

Dawn BushausDawn Bushaus
29 Aug 2018
Blockchain heats up

Blockchain heats up

Blockchain is starting to move beyond the hype as communications service providers (CSPs) report they are spending on deployments and proofs of concept aimed at simplifying billing, decreasing fraud, centralizing accounting, ensuring service level agreements and enabling dynamic network services.

A new report from Deloitte Consulting shows that CSPs are embracing blockchain technology:

  • 53% of technology, telecom and media (TMT) executives said they believe blockchain will be disruptive to the sector

  • 59% are either deploying blockchain or conducting proofs of concept

  • 41% have already invested $5 million or more in the technology

Source: Deloitte Consulting, 2018
The Deloitte survey, which was conducted online at the end of March, polled 1,053 senior executives in seven countries (Canada, China, France, Germany, Mexico, United Kingdom, and the United States) at companies with $500 million or more in annual revenue. Eighteen percent of respondents were from the telecom and media sector.

Telecom leads the way


Telecom operators have been more active than media companies, according to the report, but the success of blockchain in the financial services and logistics sectors is giving both groups more confidence to engage.
“Leaders in TMT are beginning to see that blockchain has the power to create a greater balance in the value exchange between customers and the businesses that serve them, while establishing more rigorous trust and transparency between counterparties,” the report states. “Increased trust and transparency may drive greater competition and more value for customers.”

Deloitte finds that the tech sector is enabling blockchain adoption while applying the technology’s capabilities to their own IT systems. Telcos see it as a tool for simplifying billing systems, decreasing fraud in roaming, creating decentralized accounting records and enabling dynamic next-generation network services. Media and entertainment companies intend to use blockchain to track and monetize content, address piracy and manage digital assets.

Ultimately, telecom operators could use blockchain to sell identity as a service for customers and connected devices. The report notes that half of the executives surveyed said they are working on applying blockchain to digital identity. But this won't be a slam-dunk for CSPs or media companies.
"Start-ups and independent consortia are also working to develop blockchain solutions for identity, value exchange, and open models that anchor content rights to creators. Such efforts could potentially disintermediate telecom and media and entertainment companies from playing a strong role in identity and content management. For leaders in TMT, the competitive pressures are heating up, but the opportunities are becoming clearer.”

A trillion-dollar opportunity


Deloitte’s bullish blockchain report comes on the heels of a study from Accenture predicting that blockchain could be a “$1 trillion-plus opportunity” for communications service providers (CSPs). Accenture contends that the best prospects lie in “combining their strengths in connectivity and trust with blockchain’s advantages in security, trust and speed.” The report cites the following use cases as promising:

  • Digital identity management – “Using blockchain, end users can control access to their personal information, with CSPs acting as trusted authorities for the user’s identity, collecting and releasing biometric and other user data as desired.”

  • IoT disintermediation – “Leveraging their existing involvement in the IoT ecosystem, CSPs can deliver a value-added trust capability through digital identity validations and assuring the integrity of device transactions.

  • Management of cross-carrier payments – “Using blockchain technology, CSPs can facilitate rapid, secure, variable-sized payments among the members of their aggregated user base of 5 billion.”


TM Forum is conducting its own research with member companies (CSPs, their suppliers and consultants including both Deloitte and Accenture) about how they are using or intend to use blockchain, where the potential stumbling blocks are and how collaborating on standards can help address the challenges. If you'd like to participate, please contact Senior Analyst Catherine Haslam.

Proofs of concept


TM Forum also is studying blockchain as part of the IoE Collaboration Community, which includes conducting Catalyst proofs of concept to demonstrate blockchain use cases. British Telecom, Globe Telecom, KDDI, Optus, Orange, Singtel, Telefónica, Ultrafast Fibre and Vodafone collaborated to champion a TM Forum Catalyst project called Blockchain unleashed, which was demonstrated at Digital Transformation World in May. Participants in the project included Deloitte, IBM, Infosys and Openet.
Each of the companies involved focused on one or more of five blockchain use cases:

1. Elimination of call detail records for billing, settlement and fraud detection
2. Digital identity as a service
3. Monitoring of service level agreements
4. Prevention of phone theft
5. Mobile number portability

The team is continuing its work and will demonstrate the next phase of the project at Digital Transformation World 2019 in Nice, France, in May. If you’re interested in participating, please contact Catalyst Project Manager Tania Fernandes.

Watch the video below to learn more from Kevin John Lee, Enterprise Architecture Associate, Globe Telecom. You can also learn more about the Catalyst in this blog from Dr. Tayeb Ben Meriem, Senior Standardisation Manager (OSS), Orange.



Other CSPs are working together in a proof of concept that will be demonstrated in October at MEF 18 in Los Angeles, California. CBCcom, PCCW Global, Sparkle and Tata Communications are collaborating with Clear Blockchain Technologies and Cataworx on a project designed to demonstrate how CSPs can use blockchain, artificial intelligence and intent-based customer interfaces to quickly introduce next-generation services such as internet of things, virtual reality and cloud.