- The telecom sector is already suffering from identity and roaming fraud.
- Blockchain can help it overcome these and step into the future of 5G and IoT.
Blockchain technology credits its mysterious origins to Bitcoin, the ancestor of more than a thousand cryptocurrencies, which was a simple peer-to-peer based payment network. What was considered to be a ship sailing on the current hype and bound to be lost in the next cyclone has today survived more than a decade and has proven to be promising with time.
Now blockchain has seen its impact in several sectors, including healthcare, supply chain, finance, education, gaming, and recently in the telecom and communication service provider (CSP) sectors. The technology already has millions of worldwide users and has billions of dollars locked up in several projects.
With innovation guaranteed in the telecom sector regarding the launch of the 5G network, better data speed, and the Internet of Things (IoT), blockchain technology holds the potential to be the strong base it needs to overcome the present challenges and experience more advanced capabilities.
Blockchain In Telecom
Blockchain works on distributed ledger technology (DLT), where information is stored in blocks interlinked with each other to form an ever-growing chain. The ledger is transparent, publicly visible, and replicated on the database of several users (here nodes) who are continuously involved in its verification.
It uses the techniques of cryptography to achieve encryption and provide security to the network. The Proof of Work (PoW), Proof of Stake (PoS), or other similar consensus mechanism, addresses the issue of double spending and makes sure that at any time, the same database is present with all nodes and the majority agree with its current status.
The telecom sector suffers from an annual fraud rate of nearly $38 Billion, mainly due to roaming-based fraud. It occurs when any user uses Host Public Mobile Network (HPMN) resources through the Visited Public Mobile Network (VPMN) but is not charged accordingly. The present system suffers from a long detection time and if done correctly, a long response time.
This can be prevented if a permissioned blockchain is set up between several operators and a smart-contract-based agreement is established. This will help in the instantaneous detection of any malicious uses and a quick response to eliminate them. Companies will benefit from no losses due to such fraud and also reduce costs by removing previously used technologies for the same.
Subscriber identity fraud is yet another challenge where user identity is compromised via SIM cloning or email phishing. Users can utilize services they are not paying for by stealing someone else’s identity. The inherent feature of cryptography-based encryption can be used to link a particular device to a user’s identity. A public key will identify the user and act as a username, while a private key, which is only known by the particular user, could be used to access the service. It also prevents the authentication of the device each time it enters a new territory.
Currently, the Access Network Discovery and Selection Function (ANDSF) entity helps devices discover and access various available networks, like WiFi and LTE. However, this has taken the shape of a centralized network where the rules regarding connection to the aforementioned networks cannot be dynamically improved.
Smart contracts can be used to write these different rules in the form of codes and any need to change them can be fulfilled in real time by just changing the code lines. Network access points, like routers and cell towers, can function like nodes to monitor devices.
Conclusion
There are several benefits to incorporating blockchain technology into the hearts of CSPs and telecom providers, and companies should ponder the long-term effect of blockchain on adding value to their businesses. Although there will be many challenges to be addressed, as with any new technology, if several CSPs work together, surely the telecom sector will revolutionize in the coming years.