The three top Hong Kong-listed telecommunications firms, China Mobile, China Unicom and China Telecom, are banding together to utilize blockchain with the aim of boosting operations and security within the industry, a report by the Asia Times said.
In a statement, the China Academy of Information and Communications Technology (CAICT), a research body under the control of the Ministry of Industry and Information Technology said the three telecoms had joined the [G2] Trusted Blockchain Initiative.
The Chinese telecoms, considered the engines behind the biggest mobile market in the world by subscribers, will be focusing on blockchain-based apps that are related to data sharing, internet of things (IoT) and client identity verification. The idea is to reduce operating costs and raise efficiency within their respective organizations.
According to the report, Huawei Technologies, the largest telecoms equipment supplier in the world, was designated as the project’s deputy head.
The South China Morning Post quoted Allen Li, former Huawei engineer and the chief architect of Hong Kong-based blockchain start-up QLC Chain as commenting on the initiative:
“In the next three to five years, we can expect to see more than 60 percent of telecoms services use blockchain technology. QLC Chain develops protocols for decentralized mobile network platforms.”
He added,
“Blockchain will not only help telcos lower operational costs for things like user identification, billing and content delivery network, but it will serve as the best solution to improve network security.”
Over the next two years, the consortium plans to roll out a 5G network to give them an extra advantage in the crowded telecom marketplace.
The CAICT launched the Trusted Blockchain initiative in April to explore blockchain applications in significant industries across China. But the government's crackdown on cryptocurrencies had slowed implementation of the project in several areas.
Earlier this month, a group of ASEAN and South Asian global telecommunications carriers joined a global consortium to look for ways on how to collaborate on creating a next-generation cross-carrier blockchain platform and ecosystem.
The Carrier Blockchain Study Group (CBSG) accepted into its fold the Axiata Group Berhad (Axiata), Philippine Long Distance and Telephone Co. (PLDT) of the Philippines, PT. Telekomunikasi Indonesia International (Telin) of Indonesia, Viettel Telecom Corporation (Viettel) of Vietnam, Zain Group (Zain) of Kuwait and Turkcell of Turkey.
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