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

The telecommunications industry is facing unprecedented challenges. The promotion of 5G technology has brought tremendous investment pressure, but the revenue model has not shown improvement. The profit margins and market values of leading telecommunications companies are far lower than those of internet giants, reflecting investors' lack of confidence in the industry's prospects.

The business model of traditional telecom operators is centered around communication infrastructure, achieving profitability through the provision of connectivity services, value-added services, and industry solutions. However, they face dual pressures from heavy asset investment and refined operations. The construction of 5G base stations, spectrum auctions, and other factors have driven up capital expenditures, with global operators investing over $300 billion annually. Meanwhile, the competition for the existing market remains costly.

Technological iteration and cross-border competition bring new challenges. Traditional business revenues have sharply declined, and the return on 5G investments has a long cycle. Emerging competitors such as SpaceX Starlink and cloud service providers intensify market competition. Operators are transforming from "traffic pipelines" to "digital service engines," launching platforms for the metaverse, super apps, and more.

Expanding overseas faces many obstacles, such as market access restrictions, differences in spectrum allocation rules, and data localization requirements. Operators can only achieve "limited globalization" through equity investment, joint ventures, and other methods. This model struggles to completely break free from geographical limitations and still faces the dilemma of long return cycles.

Web3 technology provides new ideas for the restructuring of the telecommunications industry. Blockchain can enable the tokenization and sharing of infrastructure resources, such as Roam validating the feasibility of users earning token incentives for contributing Wi-Fi hotspots. Decentralized identity management allows users to have autonomous control over their data, reducing privacy risks. The automation of cross-border service settlement can significantly reduce costs.

Roam, as a Web3 decentralized telecom operator, is dedicated to building a globally open wireless network. Through OpenRoaming™ Wi-Fi and eSIM services, Roam has over 1.7 million nodes and 2.3 million users in 190 countries. Its innovative model bridges the gap between the Web2 and Web3 ecosystems, redefining industry standards.

The transformation of blockchain communication networks signifies a leap from "transmitting information" to "transmitting information + value + trust". It will drive improvements in information transmission efficiency, expand the boundaries of connectivity, and reconstruct trust mechanisms, laying the foundation for building an inclusive financial system and new payment scenarios.

The future telecommunications industry may form a hybrid model of "centralized infrastructure + decentralized services." Basic operators will continue to manage physical infrastructure, while service operators will restructure as a global value routing hub based on open protocols. Users will also transform from passive consumers to ecological co-builders, promoting the development of the Web3 communication ecosystem.