News by Forbes: Darryn Pollock
KPMG, known as one of the ‘Big Four’ in the world of accounting, is teaming up with a trio of software companies heavily tied into the enterprise blockchain space to develop a solution for telecom settlements.
Microsoft, a company synonymous with software, and also more recently, profoundly connected to providing enterprise blockchain solutions, will assist KPMG alongside well-known enterprise blockchain company R3 with its Corda Blockchain. TOMIA, the company with the telecoms know-how, also adds some much-needed direction.
This latest partnering up in the blockchain space is indicative of how enterprises are looking to tackle the future of specific sectors, in this case, telecommunications. By teaming up with a telecoms company, and two blockchain providers, in R3 and Microsoft, the hopes are that this team can resolve issues that arise from multi-party connections.
Moreso, accountancy firm KPMG is looking to address the hard data issues that will arise from 5G connectivity with their eye on the future with new technologies.
Looking to control mobile data
KPMG has identified that international mobile data roaming revenues are expected to reach $31 billion in 2022, with an average annual growth rate of eight percent. The increase in data consumption will be facilitated by faster speeds, as well as increased global range, but what cannot fall behind is tracking and settling interchange fees.
Arun Ghosh, Blockchain Leader at KPMG, addressed this concern a blog post:
“While we will be able to consume more data more quickly and across more locations than ever before in this next wave of telecom advancement, it is becoming increasingly complex for telecom companies to track and settle interchange fees.”
The hope is that, through a blockchain solution, telecommunications bottlenecks caused by billions of mobile interactions flowing through hundreds of connected networks managed by dozens of customers and suppliers will be alleviated.
A need for disruption
As has become the way with blockchain use cases, there is often a strong need for a change in the current way things are done, calling for cost-cutting or an increase in efficiency. In the future, as telecoms expand and become more ingrained in society, the need will grow, but the current system is already under pressure.
Settlements and reconciliations are currently handled manually and can take up to a month to complete. More so, there are cross-service operations in many customers’ contracts, which also brings in its inefficiencies.
“The three pillars of settlements – the subscribers, their contracts, and amount of data generated – can all be integrated on a private, permissioned ledger to be seen and verified by the telecom operators,” Ghosh added.
David E. Rutter, CEO of R3, also echoed the aims of this group in increasing efficiencies:
“As the telecoms market becomes increasingly digitized, there is a significant opportunity to improve the efficiency of settlement and dispute management processes, saving time and costs. We think the Corda blockchain, with its focus on security, scalability, and performance for enterprise use, provides the ideal technology platform for developing new solutions,” he said.
“We’re excited to be engaging with some of the industry’s most experienced and accomplished names, TOMIA, KPMG, and Microsoft, to work on this project.”
A new space for blockchain’s efficiency
As blockchain technology continues to permeate the enterprise and mainstream space, its use cases and potential keep coming expanding. The supply chain has been at the forefront in many companies’ eyes, but as more understanding and better solutions are put forward, other areas come into focus.
Telecommunications are an ever-increasing sector, but much like supply chain, they often have old-fashioned ways of doing things due to the legacy of the industry.
With blockchain solutions becoming more robust and useable down the line, these spaces become ripe for disruption and are suddenly viewed through new higher-efficiency lenses. As telecoms advance with their own technologies, such as 5G, companies operating them are interested in keeping things running smoothly at the back end of the industry, In doing so, they are not only keeping up with the times, but also ensuring a smooth transition into the next wave of advancement.