When a new technology or opportunity is created, it is up to industry verticals to decide how, when, and where to exploit its potential. Communication service providers (CSPs) will find it challenging to adopt and implement technology such as blockchain.
We have already discussed the benefits and possibilities of blockchain for telecommunication providers. While the benefits of adopting blockchain in the telecommunications business are clear, putting the theory into practice may not come easily.
It is important that Communication Service Providers (CSPs) work in synergy, looking beyond obvious solutions if they are to take full advantage of the potentially huge advantages distributed ledger technology can offer.
The following advice on adopting blockchain are based on the onerous experience of early adopters of blockchain.
Collaborating and sharing of information
Telecommunications companies can substantially improve their services by sharing or joining forces with each other. It is vital that these companies work together to manage information and services of consumers, as collaboration is the ticket to a better customer experience and the application of such cutting-edge technology in the industry.
Collaborating with other companies in all sectors helps to embrace the benefits of new technologies for all. According to Erik Meijer, Senior Vice President Europe at Mach49, “If you try to tackle blockchain alone, you are setting yourself up for failure.” Furthermore, CSPs should work with many companies, not just the big-name ones. It is especially advisable to keep in contact with companies that have specialist knowledge in blockchain technology. It is also essential to look for smaller and possibly more ingenious companies to collaborate with.
While blockchain applications in the telecommunications industry are extensive, each business is unique. Businesses should analyze their processes and thoughtfully consider which areas in their company provide the best fit for integration with blockchain. Although blockchain can be very advantageous in CSPs operations, it will not enhance them all. Telecommunications service providers should be mindful not to utilize a blockchain that does not bring plenty of benefits. You have to be meticulous, otherwise you will have significant innovation, but only a few uses will be worthwhile.
Although all blockchain platforms are based on the same underlying idea, their functionality can vary greatly, so it is important to find out what features your company specifically needs. Of course, the fastest and simplest way to deploy blockchain technology is to work with a third-party blockchain platform. Thus, it is important to pay attention to the adoption rate of the existing blockchain and the level of community support.
Choosing a technology with high adoption is a wiser decision than choosing one with a poor uptake. After all, a sound decision is to explore a multitude of options, evaluate their value, and then advance only when there is a clear business case with measurable key performance metrics.
One of the biggest concerns about implementing blockchain technology is expenditure. As with all innovations, the first rule is to perform an elementary cost-benefit analysis to assess if blockchain will help or impede your business. While an initial venture can come across as costly, in the long run, the money saved can be remarkable.
Blockchain adds significant worth to the telecommunications chain of value by helping businesses improve their technical infrastructure and eliminate obsolete technologies. A well-orchestrated blockchain system can become an integral element of your organization, as investing in beneficial use-case development is vital to business prosperity.
Legal frameworks and compliance
In blockchain technology employment, compliance must be of the crucial aspects to recognize. While most “over-the-counter” blockchain operating systems offer integrated compliance tools, every company must go through and examine the blockchain’s compliance from A to Z.
Unwanted or outdated regulations can expose players in the blockchain market to risks. Therefore, telecoms operators need to work actively with regulators to ensure that appropriate regulations are in place to support the implementation of the blockchain. It is worth noting that the adaptation of legislation and regulations to the distinctive qualities of blockchain solutions are already under way in many countries.
Blockchain technology, in a way, has taken a high-profile position in the business world. The ability of this architecture to respond to complex issues methodically, cost-effectively and in a timely manner is an important reason why it has been widely applied and implemented in many markets. For telecom providers looking into adopting blockchain, it is very important to take these tips into consideration when choosing which specific blockchain platform they want to use in regard to overcoming obstacles that are particular to each platform.