China’s ‘big three’ telecoms operators look to ring in changes with blockchain tech
Blockchain, the technology behind cryptocurrencies like bitcoin and ethereum, is expected to help telecoms carriers lower operational costs and bolster network security
China’s three major telecommunications network operators are joining forces in a project to boost their industry’s operations with blockchain, accelerating the country’s broader initiative to foster and lead the development of the technology behind cryptocurrencies.
China Mobile, China Unicom and China Telecom are jointly driving the new effort, which forms part of the Trusted Blockchain initiative of the China Academy of Information and Communications Technology (CAICT), a research body under the Ministry of Industry and Information Technology, according to a statement released by the academy last week.
The three Hong Kong-listed telecoms companies, which are the engines behind the world’s biggest mobile market by subscribers, are expected to focus on blockchain applications like those related to sharing data from their separate internet of things (IoT) networks and client identity verification, which could help drive down their combined operating costs, according to the statement.
It said Huawei Technologies, the world’s largest telecoms equipment supplier, will serve as the deputy head for the project.
“In the next three to five years, we can expect to see more than 60 per cent of telecoms services use blockchain technology,” said former Huawei engineer Allen Li, the chief architect of Hong Kong-based blockchain start-up QLC Chain, which develops protocols for decentralised mobile network operations.