In preparation of 5G network services, KPGM has collaborated with business firms Tomia, Microsoft and R3 to develop a blockchain-based settlement system for the telecom sector.
In a July 16 based initial blog article, KPMG announced the collaboration and product ideas. The intended blockchain system, according to the post, aims to use smart contracts to decrease conflicts between carriers and network operators.
These kinds of smart contracts would supposedly contain crucial data for this purpose, by offering details such as right prices, target and bilateral agreement data.
The bottom line, KPMG believes, is that settlements will turn out to be quicker and easier by avoiding the need for telecom businesses to depend on third-party for settlements.
Cross-border and inter-carrier settlements are presently a complex and long task. These settlements usually take several weeks to complete and are often handed over to an external party because of the cumbersome process.
This involvement of third-party leads to significant expenses to clients. It is estimated that the expenses related to global mobile data roaming charges alone will exceed $31 billion in 2022.
Furthermore, with the emergence of 5 G phone facilities, these settlement procedures are expected to become more complicated as information transferred by customers will increase considerably. Notably, a blockchain-based system has already been deployed on the 5 G network by South Korean telecom firm KT Corporation.
The “GiGA Chain” system is supposedly acting as a safety element for Internet-of-Things gadgets by protecting equipment against cyberattacks.
