Reimagining telecommunications with blockchains
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1 Reimagining telecommunications with blockchains Rob van den Dam Global Telecommunications Industry leader, IBM Institute for business value 2018 TM Forum 1
2 To learn more about CSP executives perspectives on blockchain, we interviewed 174 CxO s across the globe Interviewee roles CEO 16 % Geographies of interviewees Europe 32 % CIO 21 % North America 25 % COO 20 % China 10 % CHRO 21 % Asia Pacific 8 % 174 respondents CFO 13 % CMO 9 % 174 respondents Latin America 10 % MEA 10 % Japan 8 % 2018 TM Forum 2
3 More than one-third of the CSP executives from our research are already considering or actively engaged with blockchains Already active in blockchain Considering blockchain Passives: Not considering blockchain 36% Blockchain will provide a secure platform, the possibility to omit third-party intermediaries, and security measures against fraud and cybercrime. CSP CIO from the United States 2018 TM Forum 3
4 Three-quarters of them cited security as a key reason to invest in blockchain and almost half to develop new business models 76% of CSP organizations already exploring/engaged with blockchain said they invested in it to address security concerns 41% of CSP organizations surveyed said blockchain could support their enterprise strategy by assuring data quality and accuracy 46% of CSP organizations already exploring/engaged with blockchain said they invested in it to develop new business models 2018 TM Forum 4
5 The greatest impact from blockchain is found in three key areas Streamlining internal processes, including interactions with suppliers and other CSPs Resulting in lower costs faster throughput improved experiences for all players Developing services for customers built on blockchain Services to support e.g. identity management mobile money digital assets transactions Collaborating in business ecosystems including the IoT Providing in ecosystems trust security transparency for all transactions 2018 TM Forum 5
6 Blockchain technology will help CSPs gain advantages in cost savings, revenue growth and new business models Telecom Supply Chain Management Management of the Order to Delivery process of telecommunication network activation for enterprise Mobile Payment with esim Activation Intelligent vending machine with Mobile payment and esim activation for tracking using IoT Roaming, Fraud and Overage Management Fulfill roaming contracts among CSP s and identify potential fraud with subscriber authentication across roaming networks Linear Advertising Sales Streamlining the ad sales process between publishers, agencies and advertisers in the TV ad space Mobile Number Portability End to end management of the number portability process Transparent Ad Supply Chain Partner with digital/advertising agencies, advertisers and publisher to streamline and optimize the digital advertising supply chain Identity-as-a-service Identity management tools that can be used across organizations, devices and applications Music Royalties Collection Streamline the royalty collection process for music Industry 2018 TM Forum 6
7 For roaming, a blockchain ledger and smart contract provides valuable benefits to every player within the network Home Operator (HO) Roaming Partner (RP) Overage Subscriber Fraudulent Subscriber Roaming Subscriber 1. Roaming Subscriber Identification 2. Roaming Subscriber Billing 3. Fraud Identification 4. Overage Management Subscriber gets on Roaming Partner s network. Based on the smart contract, authentication and registration decision is made. A call is initialized and is recorded on Blockchain. Based on the smart contract the charges are set and payment is recorded from HO to RP A mobile user with duplicate MSISDN to an existing registered one attempts to connect. Fails authenti-cation and flagged for fraud Customer calls as overage not reached, simulate reaching overage. Customer notified of overage or potential overage 2018 TM Forum 7
8 In the ad sales process several pain points can be alleviated through blockchain technology There are several benefits that blockchain brings to the ad sales process and its players: Advertisers: There is increased transparency in advertisement investment for advertisers. CSPs/broadcasters: The inventory management process is more efficient, and inventory is utilized more effectively Agencies: They can provide clients reliable ad-spend information, and the billing / invoicing processes can be further streamlined. Increased trust among players, increased customer satisfaction and a simplified account management process TM Forum 8
9 Thank you ibm.biz/blockchaintelco Rob van den Dam Global Telecom Industry Leader IBM Institute for Business Value 2018 TM Forum 9
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