KPMG, a professional service company and one of the Big Four auditors, has teamed with software companies TOMIA, Microsoft, and R3 to create a blockchain-based settlement network for telecom companies.
In a press release, KPMG said that they are developing a blockchain solution to combat the cross-border and cross-network settlement challenges among telecom organizations that will multiply with 5G connectivity. The companies intend to use smart contracts to reduce disputes between carriers and mobile operators.
“KPMG is working with TOMIA, Microsoft and R3 to develop a blockchain solution that is intended to streamline the transactional process from a multi-week to multi-day process by saving time on settlement and dispute management, increase transparency, and prevent hefty costs trickling down to consumers – making the anticipated 5G switch and the resulting processes as smooth as possible,” KMPG said.
According to the release, the smart contracts they are developing would include the right rates, destination and bilateral deal information. Such smart contracts will reportedly ensure a significant drop in disputes between telecom companies. It added that blockchain technology can also build in invoice reconciliation solutions to tackle issues about rates and amount.
“Fewer settlement disputes, lower costs for carriers, and more intuitive processes can be anticipated,” KMPG said. “And, as 5G emerges, better preparedness to support exponentially rising data usage along with the increase of distributed data across hotspots and networks. The automation and efficiency characteristics of blockchain will reduce the need to outsource manual processes, and in turn, reduce costs associated with the settlement process. Blockchain, ultimately, can proactively combat the increased expenses that would otherwise fall on the consumer to cover.”
Under the partnership, KPMG would handle the design and execution lead, Microsoft will be the principal architect, while R3’s Corda acts as the backbone of the operation, and TOMIA brings a layer of telecom expertise through representing 40-odd global operators.
“We are thrilled to be working with other leaders in this industry to deliver this solution, and are actively exploring additional blockchain solutions to support telecom enterprises with the emergence of 5G, such as protecting consumer information and improving industrial automation with the Internet of Things,” said Arun Ghosh, Blockchain Leader at KPMG. “We look forward to sharing new blockchain use cases in the months to come.”
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