Web3 Restructures the Telecommunications Industry: Communication Networks Upgraded to Value Exchange Networks

Under the global wave of digitalization, the traditional telecommunications industry is facing unprecedented challenges. The promotion of 5G technology has brought enormous investment pressure, while the revenue model has not improved, and value-added services have not achieved breakthroughs. Data shows that although the revenue of leading telecommunications companies in the United States is higher than that of internet giants, their profitability and market value are far lower than the latter, reflecting insufficient confidence from investors in the telecommunications industry.

The telecommunications industry has been exploring ways to transform itself. The early attempts at virtual operator businesses and going abroad did not address the fundamental issues. Looking back now, the envisioned eSIM global roaming scenario is actually very suitable for implementation using Web3, and can be enhanced through blockchain networks to promote value-added services.

This article will explore the reconstruction plan of blockchain technology and the Web3 model based on the current state of the telecommunications industry, using the decentralized telecom operator Roam as an example to analyze the potential of upgrading communication networks to value exchange networks.

Challenges Faced by Traditional Telecom Operators

Traditional telecom operators focus on communication network infrastructure, profiting by providing connectivity services, value-added services, and digital solutions. Basic communication services remain the main source of revenue, but traditional voice and SMS services are being replaced by OTT applications. In response to this trend, operators have launched strategies such as bundling to enhance user stickiness. At the same time, value-added services like cloud services and the Internet of Things have become new growth points.

However, operators face dual pressures of heavy asset investment and refined operations. The construction of 5G base stations and spectrum auctions have increased capital expenditures, with global operators investing over $300 billion annually. To reduce costs, the industry generally adopts measures such as co-construction and sharing of base stations and AI energy-saving. However, in the competition for existing market share, the cost of acquiring users remains high, forcing operators to shift towards digital direct sales.

Technological iteration and cross-industry competition are bringing more challenges to the industry. Traditional business revenues continue to decline, the return cycle for 5G investments is long, and there are emerging competitors such as satellite broadband and cloud vendors to contend with. Operators are transforming from "traffic pipelines" to "digital service engines," exploring new areas such as the metaverse platform and content ecosystems.

The Dilemma of the Telecommunications Industry Going Abroad

Telecom operators face many obstacles on their journey abroad:

1. Market access restrictions: Many countries restrict foreign investment shareholding ratios or require localized operations through legislation.

2. Spectrum allocation rules vary: the 5G frequency bands are not unified across countries, increasing the cost of cross-border deployment.

3. Strict data localization requirements: restrict cross-border data flows.

4. Local monopolistic market structure: In most countries, 2-3 local operators dominate.

5. Price Wars and Subsidy Culture: Emerging markets rely on low-cost packages, putting cost pressure on multinational operators.

In response to these difficulties, operators are attempting to enter overseas markets through models such as equity investment, joint ventures, and virtual operations, but still find it difficult to break free from regional constraints. In the future, there may be characteristics of "global capabilities, local delivery": building global backbone networks while adhering to data regulations in various countries, taking sides in technical standards, and highly localizing service applications.

The Web3 Reconstruction Plan for the Telecommunications Industry

The telecom reconstruction of Web3 is not simply "blockchain +", but rather an upgrade of communication networks to a fundamental value exchange layer through globalization, token economy, distributed governance, and open protocols. This specifically includes:

1. Infrastructure Layer:

• Tokenization of physical network resources to achieve distributed sharing
• Spectrum resource DAO governance improves utilization rate
• Decentralized Identity ( DID ) solution protects user privacy
• The blockchain data market allows users to trade data autonomously.

2. Cross-border services and settlement:

• Blockchain reconstructs international roaming settlement, significantly shortening the settlement cycle.
• The DeFi model introduces a fee system, allowing users to stake tokens to receive discounts.
• The combination of blockchain and edge computing gives rise to device autonomous networks

3. Economic Model:

• The integration of communication and finance allows users to earn profits by sharing resources.
• DeFi mechanism derives innovative services such as communication insurance and cross-chain roaming.
• Smart contracts automatically execute cross-border settlements, reducing costs

Roam: A Case Study of a Decentralized Telecom Operator in Web3

Roam is committed to building a global open wireless network, ensuring that humans and devices can achieve free, seamless, and secure network connections anywhere. Its main features include:

1. Global Coverage: Over 1.7 million nodes in 190 countries, with 500,000 network validations daily.

2. Decentralized Architecture: Combining OpenRoaming™ technology with Web3's DID+VC technology to build a decentralized communication network.

3. User Participation in Co-Creation: Encourage users to share Wi-Fi nodes or upgrade to OpenRoaming™ Wi-Fi to expand network coverage.

4. eSIM Service: Users can activate data plans directly on their devices, covering over 160 countries.

5. Diversified Incentives: Users can earn data traffic or tokens through activities such as signing in and inviting others.

The Roam mode validates the feasibility of decentralized communication networks and provides innovative solutions for the traditional telecommunications industry.

Communication-Based Value Exchange Network

The transformation of the blockchain communication network upgrades the communication network to a value exchange network, realizing the integration of "information + value + trust." This shift promotes changes in the payment sector from three dimensions:

1. Information transmission efficiency: The blockchain P2P network offers hundreds of times more efficiency compared to traditional systems.

2. Connecting Boundary Expansion: Providing inclusive financial services for remote populations and connecting IoT devices and AI Agents.

3. Trust mechanism reconstruction: build a value transfer channel that does not require intermediaries, achieving on-chain banking functions.

The future may give rise to new forms such as a "global instant settlement network" and an "AI autonomous financial entity."

Conclusion

The telecommunications industry is moving towards a hybrid model of "centralized facilities + decentralized services." Basic telecom operators will continue to manage physical infrastructure but will open up network capabilities through APIs. Service operators like Roam will be restructured into a global value routing hub based on communication networks and blockchain technology. Users will also transition from passive consumers to ecological co-builders. This new model is expected to become the digital foundation of the future Network State.