The Web3 Transformation of the Telecommunications Industry: From Communication Networks to Value Exchange Networks

Under the wave of digitalization, the traditional business model of the telecommunications industry is facing difficulties. 5G has brought immense investment pressure, but the revenue model has not improved. Data shows that while the revenue of leading telecommunications companies in the United States is higher than that of internet giants, their profitability and market value are significantly lagging behind, reflecting investors' lack of confidence in the industry.

The telecommunications industry is undergoing transformation. The past openness of virtual operators did not address the fundamental issues. It now seems that the globally envisioned roaming scenario is well-suited for implementation with Web3, leveraging blockchain to promote value-added services. This article will explore the reconstruction plans for the telecommunications industry provided by blockchain and Web3 operating models, as well as the significance of upgrading communication networks into value exchange networks.

1. The Traditional Telecom Operator Model Faces Challenges

Traditional telecommunications companies focus on network infrastructure and profit through connectivity services, value-added services, and industry solutions, creating a three-layer architecture of "connectivity + ecology + services." Basic communication remains the main source of revenue, but traditional voice and SMS revenues have significantly declined. Value-added services have become the growth engine, covering areas such as cloud computing and the Internet of Things.

In terms of costs, operators face dual pressures from heavy asset investment and refined operations. The construction of 5G has increased capital expenditures, with global operators averaging annual investments of over $300 billion. The competition in the existing market keeps costs high, with terminal subsidies and channel commissions accounting for more than half of marketing expenses.

Industry challenges arise from technological iteration and cross-border competition. Traditional business is clearly declining, with global voice revenue declining by an average of 7% annually and SMS revenue shrinking by 90%. The return cycle for 5G is long, and there is also a need to deal with new competitors such as Starlink and cloud providers.

The transformation path focuses on technological upgrades and ecological reconstruction. Technologically, network slicing and edge computing have become key. Ecologically, operators are shifting from "traffic pipelines" to "digital service engines." The ESG strategy has also become a differentiated approach.

2. Competition in the Existing Market and Challenges in Overseas Expansion

Traditional models struggle to support the investment and operating costs of 5G. The market has entered a phase of stock competition and segmented integration. For telecom operators, overseas expansion faces numerous obstacles:

1. Market Access Restrictions
2. Spectrum Allocation Rule Differences
3. Strict data localization requirements
4. Local Monopoly Market Structure
5. Low-price competition and subsidy culture

Whether through equity investment, joint ventures, or virtual operations, it is difficult to completely break free from regional limitations. The overseas development of telecom operators exhibits the characteristics of "global capability, local delivery."

• Core Network: Build a global backbone network, but must comply with the regulations of each country.
• Technical Standards: Choosing Camps in 6G R&D Differentiation
• Service Application: Highly localized operation

3. The Solution for Web3 Restructuring the Telecommunications Industry

Web3 reconstruction is not simply "blockchain +", but rather upgrading the communication network to a fundamental value exchange layer through globalization, token economy, distributed governance, and more.

At the infrastructure layer, physical network resources achieve tokenized sharing. Spectrum resources are governed by a DAO to enhance utilization. User identity management adopts a DID solution to enhance privacy protection. Data sovereignty further returns to the users.

Cross-border services and settlement achieve automation. Blockchain reconstructs international roaming settlement, significantly shortening the settlement cycle. The DeFi model introduces a pricing system, allowing users to stake for discounts. In the field of the Internet of Things, the combination of blockchain and edge computing gives rise to autonomous device networks.

In terms of the economic model, communication and finance achieve atomic-level integration. Users can obtain benefits by sharing resources, forming a consumption-production closed loop. DeFi mechanisms derive innovative services, and smart contracts automatically execute cross-border settlements.

Case: Web3 Decentralized Telecom Operator Roam

Roam is committed to building a global open wireless network that ensures free connectivity for humans and devices. Through the OpenRoaming™ Wi-Fi framework and eSIM services, Roam has established a decentralized communication network covering 190 countries, with over 1.7 million nodes and 2.3 million users.

Roam combines OpenRoaming™ and Web3 technology to address the pain points of traditional Wi-Fi, achieving seamless connectivity and end-to-end encryption. Users can share Wi-Fi nodes to earn incentives and enjoy seamless global connectivity. Roam's eSIM covers over 160 countries, providing users with flexible and efficient connectivity solutions.

Through diversified incentive mechanisms, Roam has promoted the rapid development of decentralized networks, creating stable income channels for users.

4. Communication-based Value Exchange Network

The essence of Web3 telecommunications reconstruction is to upgrade the communication network into a value exchange network, achieving the triadic transmission of "information + value + trust". Historically, the evolution of communication technology has profoundly reshaped the financial payment system, mainly reflected in three aspects:

4.1 Information Transmission Efficiency: Breaking the Barriers of Time and Space

From Telegram to blockchain, communication technology continuously enhances the efficiency of information transmission and compresses payment settlement times. The P2P network of blockchain improves efficiency by hundreds of times compared to traditional systems. The Web3 communication network can also greatly enhance the efficiency of value exchange.

4.2 Connection Boundary Expansion: Inclusive Finance Outreach

Mobile communication extends payment nodes to every corner. Projects like Roam can provide blockchain financial services to the 1.4 billion people who lack access to traditional banking services, achieving true inclusive finance. The Internet of Things and 5G technology are also creating new payment scenarios.

4.3 Trust Mechanism Reconstruction: Trust Without Trust

Blockchain provides us with a trustless foundation. The "on-chain bank" of Web3 has already enabled functions such as savings, investment, transfer, and payment. In the future, it may give rise to new forms like global instant settlement networks and AI autonomous financial entities.

V. Outlook

The future telecommunications industry may form a hybrid model of "centralized infrastructure + decentralized services." Basic communication operators will control the physical layer but open up network capabilities. Service operators like Roam will be restructured based on communication networks and blockchain into a global value routing hub. Users will also transition from passive consumers to co-builders of the ecosystem.

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