Reconstructing the Web3 in the Telecom Industry: Exploring the Value Upgrade of Communication Networks with Roam as an Example

Under the global wave of digitalization, the traditional business model of the telecommunications industry is facing severe challenges. The deployment of 5G technology brings enormous investment pressure, but the revenue model has not seen significant improvement, and value-added services have yet to break through, instead falling into fierce competition in the existing market.

Data shows that while leading telecommunications companies in the United States have higher revenues than internet giants, their profitability is only 30% of the latter, with profit margins only 20% of those of internet companies, and their market value is only 30%. This reflects investors' lack of confidence in the heavy asset model and growth potential of the telecommunications industry.

The telecommunications industry has been seeking transformation. The early virtual operator business did not address the fundamental issues. Exploring overseas also faces numerous obstacles, such as market access restrictions, differences in spectrum allocation, and data localization requirements. Even through equity investment, joint ventures, or MVNO models, it is still difficult to escape the constraints of limited market competition and the dilemma of huge investments.

Web3 technology provides new ideas for the reconstruction of the telecommunications industry. This is not just a simple "blockchain +", but rather upgrading the communication network to a fundamental value exchange layer through globalization, token economy, distributed governance, and other means.

At the infrastructure layer, physical network resources are tokenized for sharing. The DAO management of spectrum resources can improve utilization. The decentralized identity (DID) solution allows users to control SIM card data. The blockchain data market enables users to earn from data transactions.

Cross-border services and settlements are automated. Blockchain reconstructs international roaming clearing, significantly shortening the settlement cycle. The DeFi model introduces a pricing system, allowing users to obtain discounts through staking. 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 deep integration. Users can earn income through methods such as sharing bandwidth, forming a "consumption-production" closed loop. DeFi mechanisms give rise to innovative services such as communication insurance.

Taking the Web3 decentralized telecom operator Roam as an example, it is committed to building a globally open wireless network to ensure seamless connectivity for humans and smart devices. Roam leverages blockchain advantages to establish a decentralized communication network while integrating eSIM services. Currently, it has approximately 1.73 million nodes and 2.35 million users across 190 countries, conducting 500,000 network verifications daily.

Roam combines OpenRoaming™ technology with Web3's DID+VC technology to build a decentralized communication network, reducing construction costs and achieving seamless login and end-to-end encryption. Users can participate in the network co-construction by sharing Wi-Fi nodes, gaining a global seamless connectivity experience. Roam's eSIM covers over 160 countries, providing users with flexible network connection solutions.

The reconstruction of the telecommunications industry based on blockchain and Web3 essentially upgrades communication networks to value exchange networks, realizing the triadic transmission of "information + value + trust." This transformation promotes innovation in the payment sector from three dimensions: the efficiency of information transmission, the expansion of connection boundaries, and the reconstruction of trust mechanisms.

The future telecommunications industry may form a hybrid model of "centralized infrastructure + decentralized services." Basic communication operators will continue to act as "pipeline workers," while service operators like Roam will reconstruct themselves as the hub of global value routing based on communication networks and blockchain technology. Users will also transition from passive consumers to ecological co-builders, jointly promoting the development of the Web3 communication ecosystem.