How Blockchain Reshapes the Telecommunications Industry? Exploring New Web3 Communication Models with Roam as an Example

In the wave of digitalization, traditional telecommunications operators are facing unprecedented challenges. The 5G technology brings enormous investment pressure, but the revenue model has not improved, and value-added services are difficult to break through, falling into competition in the existing market. Data shows that the profit margin of leading telecommunications companies in the United States is only 20% of that of internet giants, and their market value is only 30% of the latter, reflecting investors' lack of confidence in the industry's prospects.

The telecommunications industry has been exploring ways to transform itself. The early virtual operator model failed to fundamentally solve the issues. In retrospect, the envisioned eSIM global roaming scenario is actually very suitable for implementation through Web3, and can leverage the Blockchain network to promote value-added services. This article will discuss the reconstruction plan for the industry based on the current state of telecommunications, as well as the opportunities that arise from it, focusing on Blockchain technology and the Web3 model.

Challenges Faced by Traditional Telecom Operators

Traditional telecom operators focus on network infrastructure, achieving profitability through connectivity services, value-added services, and industry solutions. Basic communication services remain the main source of revenue, but traditional voice and SMS businesses have shrunk due to the replacement by OTT applications. Value-added services have become a new growth point, covering areas such as cloud computing and the Internet of Things.

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

The main challenges in the industry come from technological iterations and cross-border competition. Traditional business revenues have significantly declined, the return on investment for 5G is prolonged, and there is also the impact from emerging competitors like Starlink. Operators are transitioning from "traffic pipeline" to "digital service engine," but the effectiveness of this transformation remains to be observed.

Competition in the Stock Market and Exploration Abroad

The telecommunications industry has entered a phase of competition in the existing market, making it difficult to support the investment and operational costs of 5G. Going abroad has become an option, but it faces numerous obstacles:

1. Market access restrictions: Many countries impose limits on foreign investment in telecommunications.
2. Different spectrum allocation rules: increase the cost of cross-border deployment
3. Strict data localization requirements
4. Local monopoly market structure: Difficult to break user inertia.
5. Price Wars and Subsidy Culture: Bearing High Cost Pressure

Telecom operators are attempting to expand overseas through equity investments, 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," adapting to local conditions in terms of technical standards, service applications, and other aspects.

The Idea 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 economy, distributed governance, etc. Specifically, it includes:

1. Infrastructure Layer: Tokenization of physical network resources enables distributed sharing, DAO governance of spectrum resources enhances utilization, and decentralized identity management strengthens user data sovereignty.

2. Cross-border Services and Settlement: Reconstruct international roaming clearing using Blockchain, introducing DeFi model to innovate the tariff system.

3. Internet of Things: The combination of Blockchain and edge computing gives rise to autonomous device networks.

4. Economic Model: The integration of communication and finance at the atomic level allows users to earn income by sharing bandwidth, forming a "consumption-production" closed loop.

Case: Web3 Decentralized Telecom Operator Roam

Roam is committed to building a global open wireless network that ensures free, seamless, and secure network connections for humans and smart devices. Leveraging its blockchain-based global advantages, it has established a decentralized communication network covering 190 countries through the OpenRoaming™ Wi-Fi framework and eSIM services.

Roam encourages users to participate in network co-construction through innovative mechanisms, sharing Wi-Fi nodes or upgrading to OpenRoaming™ Wi-Fi. Users not only enjoy seamless global connectivity but can also earn traffic or tokens through check-ins, invitations, and other methods, creating stable revenue channels.

Communication-Based Value Exchange Network

The essence of the transformation of the blockchain communication network is to upgrade the communication network to a value exchange network, achieving the integration of "information + value + trust". From a historical perspective, the evolution of communication technology has profoundly restructured the financial payment system, driving transformation through three dimensions: enhancing information transmission efficiency, expanding connection boundaries, and reconstructing trust mechanisms.

The blockchain-based Web3 communication network can significantly enhance the efficiency of value exchange, provide inclusive financial services for people around the world, and offer infrastructure for AI Agent interactions. In the future, it may give rise to new forms such as a "global instant settlement network" and "AI autonomous finance entities."

Future Outlook

The telecommunications industry is undergoing transformation, and a hybrid model of "centralized facilities + decentralized services" may emerge in the future:

1. Basic telecom operators: continue to control the physical layer infrastructure, but open network capabilities through APIs.

2. Service operator: Similar to Roam, based on communication networks and Blockchain technology, reconstructing into the central hub of global value routing through open protocols.

3. User Role: Shift from "Passive Consumer" to "Ecosystem Co-builder" to promote 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, laying the groundwork for future communication and value exchange networks.