Web3 Reshaping the Telecommunications Industry: From Communication Networks to Value Exchange Networks

The telecommunications industry is facing unprecedented challenges. The 5G technology brings significant investment pressure, but the revenue model has not improved, and value-added services are struggling to break through, caught in a battle for existing market share. Data shows that while telecommunications companies' revenues are higher than those of internet giants, their profitability and market value lag significantly behind, reflecting investors' lack of confidence in the heavy asset, low-growth model.

The traditional telecom business model centers around communication infrastructure and profits from connectivity services, value-added services, and industry solutions. Basic communication remains a revenue pillar, but the replacement by OTT applications has led to a significant shrinkage of traditional voice and SMS services. Operators enhance user stickiness through bundled packages while also focusing on value-added services such as cloud services and the Internet of Things. On the cost side, they face dual pressures from heavy asset investment and refined operations, with capital expenditures driven up by 5G construction and spectrum auctions, while competition in the existing market keeps costs high.

The industry challenges mainly come from technological iteration and cross-industry competition. The decline of traditional businesses is evident, the return cycle for 5G is long, and there is also the need to cope with new competitors such as Starlink and cloud vendors. The transformation path focuses on technological upgrades and ecosystem reconstruction, such as network slicing, edge computing applications, and transitioning to a "digital service engine."

Going abroad is a choice, but the telecommunications industry is restricted by numerous barriers such as market access, spectrum allocation, and data localization. Operators often adopt equity investment, joint ventures, or MVNO models, but still find it difficult to escape regional limitations, showcasing characteristics of "global capabilities, local delivery."

Web3 provides new ideas for the reconstruction of the telecommunications industry. Through globalization, token economy, distributed governance, and open protocols, communication networks can be upgraded to a basic value exchange layer. Projects like Roam have validated the feasibility of users sharing Wi-Fi for token incentives, challenging the traditional base station monopoly model. Innovations such as DAO governance of spectrum resources and decentralized identity management are changing the industry landscape.

Cross-border services and settlement automation have become breakthroughs. Blockchain reconstructs international roaming clearing, significantly reducing costs. The DeFi model introduces a pricing system, allowing users to stake for discounts. In the Internet of Things field, the combination of blockchain and edge computing gives rise to autonomous device networks. In terms of economic models, communication and finance achieve atomic-level integration, forming a "consumption-production" closed loop.

The Roam case demonstrates the potential of Web3 to reshape the telecommunications industry. Through a decentralized Wi-Fi network and eSIM services, Roam has built a global open wireless network covering 190 countries, achieving seamless login and end-to-end encryption similar to cellular networks. Users can earn token incentives through sharing nodes, social interactions, and other means, promoting rapid network development.

The essence of the transformation of blockchain communication networks is to upgrade the communication network to a value exchange network, transitioning from "transmitting information" to a "trinity network of transmitting information + value + trust." This will bring revolutionary changes in aspects such as information transmission efficiency, expansion of connection boundaries, and reconstruction of trust mechanisms, empowering new scenarios such as inclusive finance and IoT payments.

The future telecommunications industry may form a "centralized infrastructure + decentralized services" hybrid model. Basic operators will continue to control the physical layer but will open network capabilities through APIs. Service operators will be restructured into a global value routing hub based on communication networks and blockchain technology. Users will also shift from being passive consumers to ecological co-builders, promoting the development of the Web3 communication ecosystem. This restructuring is not only related to the telecommunications industry itself but may also become the infrastructure of the future digital society.