Blockchain technology offers a bigger opportunity to telcos in terms of data and content monetization, which they can do by creating a media platform using blockchain technology to directly connect content creators and cut off intermediaries to bring down costs.
Currently, the global market for blockchain is about $400-$500 million and is expected to grow beyond $6-$7 billion in next 3-4 years.
How does blockchain technology work?
The blockchain is a digital ledger for storing data including, financial transactions. The technology decentralizes information without it being copied. The information is held on blockchain through a shared database which can be accessed on a real-time basis. This database is not stored on physical servers but on the cloud, which makes it easy to store unlimited data.
TRAI’s support to Blockchain technology in India
Telecom Regulatory Authority of India (TRAI) had overhauled rules to check spam calls and messages, directing telcos to use blockchain technology to reduce unwanted communications, and mandated subscriber consent to receive telemarketing messages. It also fixed stiff penalties of between Rs 1,000 and Rs 50 lakh per violation in a month on telcos that don’t comply with guidelines to check the menace.
Vodafone Idea plans to introduce Blockchain technology:
As per TRAI data, Vodafone Idea has some 395 million users and signed a multi-year contract with Tanla Solutions to deploy the technology, along with a regulatory sandbox and production platform.