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

Under the impact of the wave of global digitization, the traditional business model of the telecommunications industry is facing significant challenges. The implementation of 5G technology brings enormous investment pressure, but the revenue model has not improved, and value-added services have yet to break through, resulting in competition in a stagnant market. Data shows that although leading telecommunications companies in the United States have higher revenues than internet giants, their profitability and market value are significantly lagging behind, reflecting investors' lack of confidence in the industry's prospects.

The telecommunications industry is actively undergoing transformation, but previous attempts such as virtual operators have not fundamentally solved the problems. Looking back at history, the originally envisioned global roaming scenario is actually very suitable for implementation using Web3, and it can promote value-added services through blockchain networks, but the technology was not mature at that time. This article will explore the reconstruction plan for the telecommunications industry based on the current industry status, the role of blockchain and Web3 models, and the changes that this brings.

1. The traditional telecom operator model faces challenges

Traditional telecom operators focus on communication networks, profiting by providing connectivity services, value-added services, and industry solutions. Their core logic is the "connection + ecosystem + service" three-tier architecture. Basic communication services remain the primary source of income, but traditional voice and SMS services have significantly declined. Operators enhance user stickiness through bundled packages while expanding value-added services such as cloud computing and the Internet of Things as new growth points.

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 network sharing and AI energy-saving are commonly adopted. However, in the competition for the existing market, marketing costs remain high, forcing digital transformation.

The industry is facing dual challenges of technological iteration and cross-border competition. Traditional businesses continue to decline, the return on investment in 5G is lengthy, and there is the need to contend with emerging competitors like Starlink. Operators are transforming from "pipeline" to "digital service engine," upgrading through technologies such as network slicing and edge computing, while actively building ecosystems in areas like content and finance. ESG strategies have also become a differentiated approach.

2. Competition in the Existing Market and Challenges in Going Abroad

The telecommunications industry has entered a stage of competition in the existing market, making it difficult to sustain the massive investments in 5G. Going overseas has become an option, but there are many obstacles to face.

1. Market access restrictions: Many countries limit foreign investment shareholding ratios or require localized operations.
2. Different spectrum allocation rules: increase the cost of cross-border deployment
3. Data localization requirements: restrictions on cross-border data flow
4. Local monopoly pattern: difficult to break user inertia
5. Price wars and subsidy pressure: Low-price competition in emerging markets leads to high costs.

Operators expand overseas through equity investment, joint ventures, and virtual operations, but still find it difficult to break free from regional limitations. In the future, it may exhibit characteristics of "global capability, local delivery": building a global backbone network while needing to comply with the rules of each country; aligning with certain standards on technologies like 6G; and highly localized service layers.

3. The Path of Web3 Restructuring the Telecommunications Industry

Web3 reconstruction is not simply "blockchain +", but rather an upgrade of communication networks to value exchange infrastructure through globalization, token economies, distributed governance, and more. Specifically including:

1. Infrastructure Layer:

   • Tokenization and sharing of physical network resources
   • DAO Governance of Spectrum Resources
   • Decentralized Identity Management
   • User data sovereignty returning

2. Cross-border services and settlement automation:

   • Blockchain Reconstructs International Roaming Settlement
   • The DeFi model introduces a fee system
   • Autonomous Network of IoT Devices

3. Innovation in Economic Models:

   • Atomic-level integration of communication and finance
   • Users share resources to earn profits
   • DeFi Derivative Innovation Services

Case: Web3 Decentralized Telecom Operator Roam

Roam is committed to building a global open wireless network, ensuring seamless and free connectivity for humans and smart devices. Through the OpenRoaming™ Wi-Fi framework and eSIM services, Roam has established over 1.7 million nodes in 190 countries, with more than 2.3 million users.

Roam combines OpenRoaming™ and Web3 technology to build a decentralized communication network, reducing construction costs and enabling seamless login and end-to-end encryption. Users can share Wi-Fi nodes to earn token rewards and enjoy seamless global connectivity. Roam eSIM covers over 160 countries, providing users with flexible and efficient network solutions.

Through Wi-Fi + eSIM global free access and diversified incentives, Roam promotes the rapid development of decentralized networks, creating stable income channels for users.

IV. Communication-Based Value Exchange Network

The essence of Web3 telecommunications reconstruction is upgrading communication networks to value exchange networks, achieving the triad transmission of "information + value + trust." Historically, the evolution of communication technology has profoundly reshaped the financial payment system:

1. Improve information transmission efficiency: from telegraph to blockchain, continuously compressing transaction time.
2. Expanding Connection Boundaries: Mobile payments enable inclusive finance, and the Internet of Things creates new payment scenarios.
3. Reconstructing the Trust Mechanism: The blockchain network builds a trust foundation without intermediaries.

The future may give rise to new forms such as a global instantaneous settlement network and AI autonomous financial entities.

Case Study: Orange Money's Mobile Payment Strategy in Africa

Orange Money relies on its telecommunications user base to launch mobile payment services in 17 African countries, with over 40 million users. The key to its success lies in the deep integration of local scenarios, channels, and culture, forming an "communication + payment + finance" ecosystem. In the future, there are plans to build a super app and explore digital currency pilot projects.

V. Conclusion

The telecommunications industry is undergoing transformation. In the future, a "centralized infrastructure + decentralized services" hybrid model may emerge: basic communication operators control the physical layer and open APIs for DePIN projects to call; service operators like Roam will restructure as the global value routing hub based on communication networks and blockchain technology. Users need to shift from passive consumers to ecological co-builders, promoting the development of the Web3 communication ecosystem.

Decentralized telecom operators like Roam in Web3 are expected to become the digital foundation of the ideal Network State.