The new system uses blockchain-based smart contracts. After the application of this technology, it can settle roaming charges on a real-time basis, a job that previously took a month.
In the past, roaming charges have been settled by carriers after checking the roaming information provided by international data clearing houses (DCH) and financial clearing houses (FCH). There have been problems in checking the real-time usage history through DCHs and FCHs, with considerable time and money wasted to adjust the errors. The real-time automatic settlement system verifies and confirms the usage data that mobile operators exchange to provide roaming services to their customers.
The new system uses smart contracts, which refer to self-executing contracts stored on the blockchain, which nobody controls and therefore everybody can trust. Smart contracts execute transactions if the pre-signed conditions are met.
Real-time billing is also possible if future blockchain technology enables operators to access and control rate information in real-time.
Kim Won-kyong, managing director of KT marketing strategy, said the company would further develop its system through international cooperation. “When our system provides services stably, we will push for standardization so that it can evolve into a real-time automatic settlement system that can be used by global mobile carriers.”
KT’s blockchain-based roaming solution also supports smart contracts, which are self-executing contracts with the terms and conditions of an agreement between two parties encoded in software code. Smart contracts can automate and streamline various aspects of roaming transactions, such as authentication, billing, and settlement.
Overall, the use of blockchain technology in roaming services can potentially bring significant benefits to both mobile operators and customers, such as improved security, faster transaction processing, and lower costs. However, it’s worth noting that the adoption of blockchain-based solutions in the telecom industry is still relatively new, and it may take time for these technologies to be widely adopted and integrated into existing systems.