There is no doubt that the blockchain use case in the telecom industry is an interesting one.
In an interview with Citizen TV, the CEO of Safaricom, Bob Collymore, has revealed that the giant telecom is considering looking into the blockchain in order to scale its MPESA mobile money service beyond Kenya.
Collymore also mentioned the role that eCommerce, with its Masoko platform, and other digital products that will play in this expansion strategy as it looks to become a digital-first company.
What Blockchain means for Telcos
Nearly everyone on the planet today has a cell phone. With this, communication providers spend a lot of time managing customer profiles and identities. They need to track each customer’s usage, hardware, usage contract, billing history, etc. Because blockchain provides a current single version of the truth, it’s well suited to provide the foundation for a simplified identity management system.
The recent fraud activity experienced on the Safaricom network is one of the critical areas where the blockchain can be used to help solve and bring some sanity into.
Innovative communication service providers like Safaricom are now considering the benefits of blockchain throughout their businesses, and collaborating with other industry actors to create a connected network for consumers. Blockchain will allow telcos to improve their core business processes, communication speeds, and security concerns, while accelerating their innovation capacity.
Blockchain is perfectly suited to enhance the role of digital enablers that telcos can play in a hyper-connected world. It will provide a meaningful competitive advantage to those who embrace it early and Safaricom has realized this huge potential.