Web3 Technology Reshapes the Telecommunications Industry: From Communication Networks to Value Exchange Networks

Under the global wave of digitalization, the traditional business models of the telecommunications industry are facing significant challenges. The implementation of 5G technology brings enormous investment pressure, while the revenue models have not seen effective improvement, and the breakthroughs in value-added services are weak, leading to fierce competition in a saturated market. Data shows that although the revenue of leading telecommunications companies in the United States is higher than that of internet giants, both their profitability and market value are far lower, reflecting investors' lack of confidence in the industry's prospects.

The telecommunications industry is seeking transformation. Previous attempts involving virtual operators have not addressed the fundamental issues. Looking back at the eSIM global roaming scenarios explored earlier, they now seem very suitable for implementation through Web3 methods, and can leverage blockchain to promote value-added services. This article will discuss solutions based on the current state of the telecommunications industry, the role of blockchain and Web3 models, and how to upgrade communication networks into value exchange networks.

Challenges Faced by Traditional Telecom Operators

The business model of traditional telecom operators revolves around communication infrastructure, profiting from connectivity services, value-added services, and industry solutions. Basic communication services remain the main source of income, but traditional voice and SMS revenues have significantly declined. Operators enhance user loyalty through bundled packages while also developing value-added services such as cloud services and the Internet of Things.

In terms of costs, operators face dual pressures of heavy asset investment and refined operations. The construction of 5G and spectrum auctions have increased capital expenditures, with global operators investing over $300 billion annually. To reduce costs, measures such as co-construction and sharing, as well as AI energy-saving, are commonly adopted. At the same time, competition in the existing market keeps costs high, with terminal subsidies and channel commissions accounting for more than half.

The main challenges in the industry arise from technological iterations and cross-border competition. Traditional business revenues continue to decline, the return on investment for 5G is lengthy, and there is also the need to face new competitors such as satellite broadband and cloud vendors. Operators are transforming from "traffic pipelines" to "digital service engines," building content ecosystems and developing metaverse platforms. ESG strategies have also become a differentiated approach.

The Path to Going Abroad Breaking Through the Limitations of the Existing Market

Telecom operators face numerous obstacles when expanding overseas: market access restrictions, differences in spectrum allocation rules, data localization requirements, local monopolistic market structures, and pressure from price wars, among others. Whether through equity investment, joint ventures, or the MVNO model, it is difficult to completely break free from regional limitations.

Telecom operators going overseas exhibit the characteristics of "global capability, local delivery": building a global backbone network at the core network layer, selecting camps at the technical standard layer, and highly localizing at the service application layer. However, this limited globalization model is not a long-term solution.

The Direction of Web3 Restructuring the Telecommunications Industry

Web3's reconstruction of the telecommunications industry is not just a simple "blockchain +" but rather an upgrade of the communication network to a fundamental value exchange layer through globalization, token economics, distributed governance, and open protocols. Operators that refuse to embrace change may become mere "pipe workers," while those who embrace reconstruction have the opportunity to become core nodes of the next generation of the value internet.

At the infrastructure level, physical network resources are distributed and shared through tokenization. The Web3 decentralized telecom operator Roam has verified a model where users contribute Wi-Fi hotspots and receive token incentives. DAO governance of spectrum resources can enhance utilization and create shared profits. The decentralized identity (DID) solution allows users to have autonomy over their SIM card data, reducing privacy risks.

The automation of cross-border services and settlements has become another breakthrough. Blockchain reconstructs international roaming clearing, significantly shortening settlement cycles and reducing costs. The DeFi model introduces a tariff system, allowing users to obtain communication discounts through staking. In the field of the Internet of Things, the combination of blockchain and edge computing gives rise to autonomous device networks.

In terms of economic models, communication and finance achieve atomic-level integration: users can earn profits by sharing bandwidth, data, etc., forming a "consumption-production" closed loop. The DeFi mechanism gives rise to innovative services such as communication insurance and cross-chain roaming.

Roam: A Decentralized Telecom Operator Case in Web3

Roam is committed to building a globally open wireless network, ensuring that humans and devices can achieve free, seamless, and secure network connections anytime and anywhere. By establishing a decentralized communication network based on the OpenRoaming™ Wi-Fi framework and integrating eSIM services, Roam has over 1.7 million nodes and 2.3 million users in 190 countries worldwide.

Roam combines OpenRoaming™ technology with Web3's DID+VC technology to build a decentralized communication network, reducing global network construction costs and achieving seamless login and end-to-end encryption. Users can participate in network co-construction by sharing Wi-Fi nodes and enjoy seamless connectivity globally.

Roam's eSIM covers over 160 countries worldwide, providing users with flexible and efficient network connectivity solutions. Through a diverse incentive mechanism, users can earn global data traffic or Roam points tokens through interactions, creating a stable income channel.

Communication-Based Value Exchange Network

The reconstruction of the telecommunications industry by blockchain and Web3 essentially upgrades the communication network into a value exchange network, achieving a trinity network of "transmitting information + value + trust." From a historical perspective, the evolution of communication technology has profoundly restructured the financial payment system, with each technological breakthrough bringing a qualitative leap to payment forms.

Web3 communication networks drive transformation in three dimensions: information transmission efficiency, boundary expansion of connections, and reconstruction of trust mechanisms.

1. Information transmission efficiency: Blockchain uses a P2P communication network to create a value transfer channel without intermediaries, significantly improving efficiency.

2. Connecting boundary expansion: Projects like Roam can provide blockchain-based financial services for the 1.4 billion people globally who lack access to banking services, achieving inclusive finance.

3. Trust Mechanism Reconstruction: Blockchain-based "on-chain banking" can achieve functions such as savings, investment management, transfers, and payments, reconstructing the trust mechanism of financial services.

Conclusion

The telecommunications industry is undergoing a transformation. In the future, a hybrid model of "centralized infrastructure + decentralized services" may emerge: basic telecom operators will continue to control the physical layer infrastructure, but will open network capabilities through APIs; service operators like Roam will reconstruct themselves as the central hub of global value routing based on communication networks and blockchain technology.

Users need to shift from "passive consumers" to "ecological co-builders" to promote the development of the Web3 communication ecosystem. Decentralized telecom operators like Roam are expected to become the digital foundation of the ideal Network State.