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Telefónica Blockchain for Roaming Settlement

Sector: Tertiary sector · Industry: Telecommunications providers · Organisation: Telefónica · Maturity level: Pilot

Telefónica is developing a blockchain solution based on Hyperledger Fabric together with Deutsche Telekom, Orange and other mobile operators to automate roaming settlements. The system aims to automate and simplify the complex manual processes in roaming discount agreements between network operators. The solution is currently in pilot stage with successfully conducted tests for automated roaming services.

Documentation status

Description

Roaming billing between mobile network operators is a massive manual process: when a telecom customer uses data abroad, the home operator must compensate the visited operator for usage. Millions of individual events need to be reconciled. Deutsche Telekom, Orange and Telefonica piloted a blockchain-based solution in 2019.

The roaming billing process: every data event (connection setup, usage data, connection end) is logged by the visited operator; periodically (monthly) this data is transmitted to the home operator and reconciled; disputes arise when data does not match — which happens frequently. Manual resolution takes months. Blockchain solution: every roaming event is immediately documented on the blockchain; both operators see the same immutable entry; smart contracts can automatically execute payments when thresholds are met. Deutsche Telekom announced the blockchain roaming pilot in an official press release. TelecomTV reported: Deutsche Telekom, Orange and Telefonica hope blockchain will solve roaming problems. Light Reading later confirmed the pilot’s success: DT, Telefonica and Vodafone confirm blockchain-based roaming service.

Perspectives

B2B — organisations perspective

Mobile network operators can switch roaming billing from monthly manual reconciliations to real-time blockchain documentation — disputes are immediately identifiable, payment cycles reduced from months to days.

B2C — consumers perspective

End customers indirectly benefit from more reliable roaming services and potentially cheaper roaming tariffs through more efficient billing processes. The blockchain technology itself is not directly visible or usable by consumers.

Employees perspective

Employees in roaming departments are freed from time-consuming manual billing tasks and can focus on more strategic activities. At the same time, new requirements arise for technical knowledge in blockchain technology and smart contracts.

Benefits

General

B2B — organisations

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

The solution is based on Hyperledger Fabric, an open-source blockchain technology from the Linux Foundation, specifically developed for enterprise networks. This technology is particularly well suited for roaming billing as it allows only authorised telecommunications providers to participate in the network and securely exchange confidential billing data.

Implementation examples

Telefónica roaming blockchain pilot project

Telefónica wanted to automate and standardise the complex and error-prone manual processes in roaming billing. The goal was to reduce costs and increase transparency between network operators.

Telefónica is developing a blockchain solution for automated roaming billing together with Deutsche Telekom, Orange and Vodafone.

The pilot project uses Hyperledger Fabric to automate roaming discount agreements between major European mobile network operators. The solution was successfully tested and is intended to be scalable for IoT devices in the future. The project is conducted under the auspices of the GSMA and the code is to be released as an open-source solution for the entire industry.

The project addresses the high complexity of manual roaming billing and the associated sources of error. The blockchain solution reduces disputes between providers and accelerates billing processes.

Tags

Roaming, Automation, Hyperledger, Telecommunications, Billing

Sources

  1. Neu: Blockchain beim Operator-Roaming
  2. Deutsche Telekom, Orange, Telefónica hope blockchain will ease roaming headaches
  3. DT, Telefónica, Vodafone Cheer Blockchain-Based Roaming Service