According to Dennis Meurs, a GM and VP of Transaction and Clearing Services at Syniverse, mobile operators should pursue Blockchain technology to develop a framework for tokenizing the futuristic 5G technology.
Dennis is bringing into perspective the fact that the introduction of 5G network poses new challenges to mobile network operators in regards to how the high-speed network can be modeled to derive maximum revenue benefits for both clients and the operators.
One of the key areas that need to be thought of is the monetization of the 5G networks in a formula that allows every contributor and external partner to get a proportionate share of their value chain contribution.
Hence, Blockchain technology is the sure bet to allow the operators to develop a Token system that records contributions through smart contracts to issue liquid Tokens to 5G services stakeholders.
A Study Shows That A Gap Exists
Earlier in the year, Heavy Reading – a research firm in the telecom industry, conducted a global study on behalf of Syniverse with results that show up to 60% of operators plan to focus on enterprise services and systems in their models of adopting 5G network.
Additionally, 74% of the respondents answered that they are finding it difficult to onboard partners in their 5G projects.
Hence, through these finding, telecom operators can narrow down their options to Blockchain developers and roll out their 5G projects ahead of time.
5G Adoption Is A Complex Undertaking
Operators are facing a herculean task in 5G implementation projects. This is due to the fact that 5G technology offers key network solutions such as low latency, extra capacity, and faster speeds that require powerful distributed computing capabilities. Hence, no network operator can sufficiently implement these projects.
Further, there exists the need to integrate a technology that can proffer reconciliation, payment solutions, and multi-party billing functions. These projects are complex and a lot has to be done to enable operators to roll out billing systems in the next two to four years when 5G network is expected to be implemented on a global scale.
Blockchain Technology Is Ideal For 5G Billing
Blockchain technology has features such as scalability and built-in transparency that can create Blockchain ledger-based billing systems for 5G networks. This is because operators will have the ability to manage clearing, logging, and settlement processes for the various commercial players that will be involved in service provision.
Notably, the significance of Blockchain in 5G implementation is vital as the technology relies on an array of interconnected networks, platforms, and hosted technologies that need to be interoperable to facilitate communication within the system.
Additionally, Blockchain technology will secure 5G networks from cyber-attacks since the technology would be implemented in sensitive areas such as the Internet of Things (IoT) applications or data provenance. This will be achievable in a Blockchain-powered 5G network as the technology allows participants in the service chain to be vetted through billable usage, identical verifiable proof of events, and executed transactions.
Projects Are Underway
Dennis Meurs suggestions of incorporating Blockchain technology in 5G networks billing systems is not just a theory but a reality as projects have been rolled out.
For instance, MTS Russia and Orange, in May 2019, tested a Proof of Concept for a 5G billing Blockchain-based system.