How does blockchain reconstruct the telecommunications industry? A discussion using Roam as an example

In the wave of global digitalization, the traditional business model of the telecommunications industry faces challenges. The promotion of 5G technology brings tremendous investment pressure, but the revenue model has not improved, and value-added services have not made breakthroughs, resulting in competition in a saturated market. Data shows that while the revenue of leading telecommunications companies in the United States is higher than that of internet giants, their profitability and market value lag significantly behind, reflecting investors' lack of confidence in the industry's prospects.

The telecom industry is undergoing transformation. Attempts by virtual operators have failed to fundamentally solve the problems. Looking back, the global roaming scenario of eSIM is actually very suitable for implementation through Web3, and can be enhanced by Blockchain to promote value-added services. This article will explore solutions based on the current situation of the telecom industry, the impact of Blockchain and Web3 models, and analyze the case of Roam regarding the upgrade of communication networks to value exchange networks.

Challenges Faced by Traditional Telecom Operators

Traditional operators focus on communication infrastructure, profiting through connection services, value-added services, and industry solutions. Basic communication services remain the primary source of revenue, but traditional voice and SMS businesses have significantly shrunk. Value-added services have become a new growth point, covering areas such as cloud services and the Internet of Things.

In terms of costs, operators face dual pressures from heavy asset investment and refined operations. The construction of 5G, spectrum auctions, and other factors have driven up capital expenditures, with global operators investing over $300 billion annually. The competition for existing markets is costly, with terminal subsidies and channel commissions accounting for more than half of marketing expenses.

Technological iteration and cross-industry competition present challenges. Traditional business revenues continue to decline, the ROI cycle for 5G investments is long, and there are emerging competitors like Starlink to contend with. Operators are transitioning from "traffic pipelines" to "digital service engines," building content ecosystems, developing the metaverse, and placing importance on ESG strategies to attract investment.

The Dilemma of Exploring Overseas

Telecom operators face numerous obstacles when going abroad: market access restrictions, differences in spectrum allocation rules, strict data localization requirements, local monopolistic structures, and pressure from price wars. They attempt to go abroad through equity investment, joint ventures, or virtual operator models, but still find it difficult to break free from regional constraints and high costs.

The future may present the characteristics of "global capabilities, local delivery": building a global backbone network at the core network layer, selecting technical standards among different camps, and highly localizing the service application layer. Limited globalization and survival in the cracks are not the ideal answer; new breakthroughs are needed.

The Path of Web3 Restructuring the Telecommunications Industry

Blockchain and the Web3 model can fundamentally reconstruct the telecommunications industry. This is not just a simple "Blockchain +", but rather upgrading the communication network to a foundational value exchange layer through globalization, token economy, distributed governance, and open protocols, supporting future digital civilization.

At the infrastructure level, physical network resources are shared in a distributed manner through tokenization. The DAO governance of spectrum resources can improve utilization and create shared revenue. Decentralized identity solutions allow users to control SIM card data, reducing privacy risks. Users can trade anonymized behavioral data through blockchain data markets to obtain profits.

Cross-border services and settlements are automated. Blockchain reconstructs international roaming clearing, significantly shortening settlement cycles and reducing costs. The DeFi model introduces a pricing system, allowing users to stake for discounts. In the Internet of Things field, autonomous networks of devices have emerged, such as smart cars automatically bidding for base station resources.

In terms of the economic model, communication and finance are deeply integrated. Users can earn profits by sharing resources, forming a "consumption-production" closed loop. The DeFi mechanism has derived innovative services such as communication insurance and cross-chain roaming, with on-chain smart contracts automatically executing cross-border settlements.

Roam: A Case Study of a Web3 Decentralized Telecom Operator

Roam is committed to building a global open wireless network to ensure that humans and smart devices achieve free, seamless, and secure connections. Based on the globalization advantages of Blockchain, Roam has established a decentralized communication network for the OpenRoaming™ Wi-Fi framework and has integrated eSIM services.

In just over two years, Roam has established over 1.7 million nodes and 2.3 million users in 190 countries, conducting 500,000 network verifications daily, becoming the largest decentralized wireless network in the world. Roam combines OpenRoaming™ technology with Web3's DID+VC technology to reduce network construction costs, enabling seamless login and end-to-end encryption.

Roam encourages users to participate in the co-construction of the network by sharing Wi-Fi nodes or upgrading to OpenRoaming™ Wi-Fi. Users can seamlessly connect among 4 million hotspots worldwide and even find Roam nodes in remote areas. eSIM technology provides crucial support for global open wireless networks, covering over 160 countries.

Roam promotes network development through global free access via Wi-Fi + eSIM and a diversified incentive mechanism. Users can earn data traffic or points tokens through check-ins, inviting friends, and other methods, creating stable income channels.

Communication-based Value Exchange Network

The transformation of the Blockchain communication network is a significant breakthrough. It upgrades the communication network to a value exchange network, achieving the integration of "information + value + trust," becoming the foundation of the next generation digital society. The Web3 value Internet allows value to flow freely like information.

From a historical perspective, the evolution of communication technology has profoundly restructured the financial payment system. Blockchain replaces centralized architecture with a P2P network, creating a value transmission channel that does not require intermediaries, improving efficiency by hundreds of times. The global network based on Roam can provide blockchain financial services to 1.4 billion people who lack access to banking services, achieving inclusive finance.

The future may give rise to new forms such as a "Global Instant Settlement Network" and "AI Autonomous Financial Body." Orange Money's mobile payment layout in Africa demonstrates the path for telecom operators to deepen localization strategies through fintech, providing a reference for Web3 telecom transformation.

Conclusion

The telecommunications industry is undergoing transformation. In the future, a hybrid model of "centralized facilities + decentralized services" may form: basic communication operators control physical layer resources and open network capabilities through APIs; service operators like Roam will reconstruct as the global value routing hub based on communication networks and Blockchain technology. Users need to shift from passive consumers to ecological co-builders, driving the development of the Web3 communication ecosystem.

Decentralized telecom operators like Roam in Web3 may become the digital foundation of the Network State utopia, building a new type of communication infrastructure for future society.