Blockchain technology could add up to $1 billion in value to the telecommunications sector over the coming years, but telcos must develop new skills and capabilities to capture that opportunity, according to a recent analysis from GlobalData.
GlobalData highlights that several leading operators are already running trials and pilots. One promising application is blockchain-enabled communications directed to mobile device SIM cards, which could help address roaming challenges and make it easier for visitors to access local voice and data services without complex integrations.
“Through blockchain-enabled direct communications to mobile device SIM cards, mobile operators would love to offer their voice and data services to international travellers visiting in their coverage areas,” said Ron Westfall, technology analyst at GlobalData. “Operators would gain access to a large new market of travellers while avoiding expensive integrations with third-party systems and the need to overhaul rigid legacy platforms or build complex new systems.”
GlobalData notes that major operators including BT, Colt, HGC Global, Telefonica and Telstra are conducting blockchain trials. For example, Colt announced a proof of concept earlier this year to evaluate whether blockchain can streamline payment settlements between operators, aiming to reduce friction and improve efficiency.
However, the analyst firm warns that telcos need to move beyond initial hype—similar to earlier waves of cloud and IoT enthusiasm—and invest in technical expertise and marketing acumen to translate pilots into real services.
“Telcos must show they can use these ongoing blockchain trials to quickly deliver new services and features,” Westfall added. “They need to recruit and train personnel who understand blockchain technology and adapt their networks to leverage distributed ledger capabilities.”
If executed well, the long-term implications for the telecom market could be substantial. Operators, customers and partners could all benefit from improved customer experience and cost savings enabled by trusted, streamlined communications and transactions built on blockchain infrastructures.
The estimated billion-dollar opportunity comes from a Markets and Markets report, which projected the blockchain-in-telecoms market to reach approximately $993.8 million by 2023, driven by an expected compound annual growth rate of around 84.4% over the forecast period.
Industry experts identify several high-value use cases where blockchain could deliver immediate benefits. Ericsson’s Rajat Kochhar highlighted fraud management, IoT/M2M connectivity and identity management as key initial areas. These applications can provide practical starting points for telcos to develop blockchain-based products and services.
“These use cases provide plenty of ways that telcos can invest in the development and implementation of blockchain-based products,” Kochhar wrote. “It is expected that within the next few years, the use of blockchain technology by the telecommunications industry will become more widespread and eventually become the norm in services like identity management and registries to start with.”
To capitalize on blockchain’s potential, telecom operators should focus on several practical steps: build internal expertise through hiring and training; run focused pilot projects aligned to measurable business outcomes; modernize network interfaces to support distributed ledger interactions; and design clear go-to-market strategies that communicate customer benefits.
Beyond roaming and settlements, blockchain can help telcos reduce fraud, automate settlements, provide secure device identity for IoT deployments, and create new revenue streams through trusted marketplaces and smart contracts. Each application requires careful consideration of privacy, regulatory compliance, and interoperability with existing systems.
Operators that move quickly to develop practical, customer-focused blockchain services stand to reap disproportionate rewards. Early adopters who combine technical investment with strong product management and partner ecosystems will be better positioned to convert experimental pilots into scalable offerings that improve operational efficiency and enhance customer trust.
Interested in hearing leading global brands discuss subjects like this in person? Find out more at the Blockchain Expo World Series, Global, Europe and North America.
Attend the co-located IoT Tech Expo, Blockchain Expo, AI & Big Data Expo and Cyber Security & Cloud Expo World Series to explore the future of enterprise technology and learn how blockchain and related innovations are shaping telecom services and business models.