Telecommunications and data centre services provider Colt has announced a proof of concept (PoC) designed to evaluate whether blockchain technology can streamline payment settlements between network operators.
The initiative was developed in collaboration with PCCW Global and Clear, a company that specializes in building blockchain-based wholesale clearing and settlement platforms for entire industries and the supporting economies.
At the recent Pacific Telecommunications Council annual conference, the PoC demonstrated the ability to settle inter-carrier voice traffic payments in under 60 seconds—a process that traditionally can take weeks or even months to complete.
The trial required participating parties to run bilateral private blockchains to record transactional data, which were subsequently reported to a public blockchain. Smart contracts were used to automate settlement steps, log transactions, and help resolve disputes efficiently.
If the concept proves successful, the partners plan to explore a token-based model in which operators use cryptocurrency-style tokens as credit to settle transactions instead of relying on traditional cash exchanges.
“It is our goal to create a more agile, customer-oriented organisation, and one way in which we are doing this is by exploring the benefits of disruptive technologies such as blockchain,” said Carl Grivner, Colt’s chief executive officer. “Collaborating with PCCW Global and Clear is ground-breaking, as we have demonstrated how blockchain can transform the way we conduct business in the telecom industry.”
This PoC highlights a growing, practical use case for blockchain within the telecom sector. Industry observers first began exploring blockchain’s potential for telecom applications in 2016, particularly for identity management and trust—core attributes of blockchain that align closely with telecom operators’ needs. Payments were identified early on as a promising but more complex opportunity.
In a November analysis for this publication, Rajat Kochhar, a consultant on wireless, Wi‑Fi and wireline networks at Ericsson, identified several areas where blockchain could deliver value: fraud management, IoT and M2M connectivity, and identity services. “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,” Kochhar wrote.
Interested in hearing industry leaders discuss topics like these and share their real-world use cases? Attend the co-located IoT Tech Expo, Blockchain Expo, AI & Big Data Expo, and Cyber Security & Cloud Expo World Series, which host events in Silicon Valley, London, and Amsterdam and showcase the future of enterprise technology.