Hugo Feiler, CEO of Minima Global, thinks that blockchain will be an important technology for telecoms in the coming years
Hugo Feiler, CEO of Minima Global, thinks blockchain will be an important technology for telecommunications companies in the post-COVID-19 world. Even though it’s still a new technology, there are an array of developers ready to adapt it to numerous industries — including telecoms.
“Blockchain is ten years in but still in its formative stages. However, there are every so often seismic shifts and the Covid-19 pandemic is changing the behaviour in a lot of industries. I think that blockchain will be accelerated as a result, because as more and more of the world becomes connected digitally rather than physically, blockchain can definitely be a core enabler of that new reality.”
There is no doubt that businesses are looking for ways to cut down on physical interaction and make more online working spaces.
Where does blockchain fit into telecom?
According to a recent report from Research Nester, there is a substantial amount of blockchain development happening in the telecoms sector already.
The report estimates that blockchain application in telecoms will grow at a compound annual growth rate (CAGR) of 70% from 2019 to 2021, and the value of blockchain applications in telecoms will rise from $45 million in 2017 to $1 billion in 2027.
“As soon as new players come into the market with blockchain as a way of creating competitive advantage, they will have cost efficiencies and flexibility in their systems by using blockchain rather than legacy backend systems.”
Big potential for rapid growth
While blockchain use in telecoms is still limited, Feiler thinks that the underutilization of the technology could mean innovation and fast growth.
“If you get some entrepreneurial upstarts that do that, I think that the technology will continue to be built on and developed and it will come from a combination of forward-thinking from network operators who will see the writing on the wall and work out they need to be ahead of the curve,” Feiler added.”
If blockchain-based systems give a major telecoms provider an advantage that translates into lower costs, other companies in the industry will have to adopt similar systems.
Once the shift starts, it could evolve very quickly; with Blockchain entering new industries all the time, it appears that telecoms could be the next sector to be improved by blockchain.