Are telecom giants hesitant to disrupt their own long-standing systems? Is the fear of change overshadowing the tangible benefits? Or is the complexity of blockchain integration the real stumbling block? As the demand for transparency and efficiency grows in this rapidly evolving sector, the question remains: will blockchain be a catalyst for innovation or yet another technology met with cautious resistance? 

In this interview, Amir Dorot, CEO at Cellact Mobile Technologies, shares his insights on the current and future role of blockchain in the telecom industry, exploring whether this technology is set to revolutionize the industry—or remain on the sidelines. 

Supertrends: Blockchain adoption in telecom has grown in recent years. What are the most promising use cases you see today? 

Amir Dorot: The telecom industry is highly conservative and slow to adopt new technologies, and blockchain is no exception. One of the most promising use cases is using a private blockchain within a country to manage number portability. Blockchain can replace traditional number portability solutions, allowing different mobile and landline operators to share a common network within a country. 

So far, blockchain adoption has mostly been limited to proof-of-concept trials and tests replacing traditional Web2 deployments with Web3 technologies. However, I cannot yet point to any instance where blockchain is an absolute necessity rather than just a beneficial solution. 

Blockchain is an ideology that revolves around freedom and privacy, with no single entity owning the network. This requires a fundamental shift in business models and operational structures for telecom providers, which will take considerable time. 

I believe the most promising use of blockchain is replacing the current telecom infrastructure for both data and voice services. Given that voice is now just an application running over data, the most significant changes will relate to data infrastructure. 

Blockchain should bring identity and authentication into Web3 instead of relying on telecom-specific authentication methods. There is no need to reinvent authentication for telecom when we can utilize Web3 identity and technologies such as Zero-Knowledge Proofs (ZKP). Ultimately, Web3-based infrastructure will likely replace traditional telecom networks. 

Supertrends: How is blockchain improving security and transparency in telecommunications? 

Amir Dorot: Blockchain's strongest advantage lies in its cryptographic security features. Using a crypto wallet as the basis for identity authentication is more secure than conventional GSM-based methods. 

A practical approach to implementing this would be layering crypto wallet authentication over the existing IP layer of GSM networks. This means that once a subscriber has a data connection, their identity can be verified using their crypto wallet, significantly enhancing telecom security. 

Regarding transparency, a smooth transition from current telecom infrastructure to blockchain-based networks requires adapting proven protocols. For instance, while using a crypto wallet for identity authentication, calls could still be established using Voice over IP (VoIP) protocols such as SIP/RTP. This approach keeps the familiar telecom infrastructure intact while integrating the security benefits of Web3. 

Supertrends: Telecom companies are exploring blockchain for fraud prevention, smart contracts, and identity management. Which of these applications do you think will have the biggest impact? 

Amir Dorot: Identity management is undoubtedly the key solution for Web3-based telecom networks. Using a crypto wallet as an identity mechanism (a combination of key pairs) provides ultimate privacy and security control. 

This shift means that traditional phone numbers become obsolete, and we could instead use Web2 identities (email) or Web3 identities (Ethereum Name Service – ENS) as primary contact points for calls and messages. 

Supertrends: What are the key challenges preventing the wider adoption of blockchain in the telecom industry? 

Amir Dorot: This is an easy question. The biggest obstacle is the Mobile Network Providers (MNPs). MNPs are resistant to change and prefer to maintain control under regulatory protection to avoid competition. 

They will always prefer to protect their walled garden under the shield of regulation, ensuring no other players can enter the market. Otherwise, they risk ending up like Internet Service Providers, which once offered a wide range of services but are now reduced to merely providing an internet connection. 

The change and true innovation will come from startups and new entrants challenging the status quo. Just as Netflix replaced Blockbuster, digital cameras replaced Kodak, and Uber disrupted taxi services, blockchain will eventually disrupt telecom. The change is inevitable. 

Supertrends: How do you see the role of decentralized networks evolving in telecom? Could we eventually see a shift toward decentralized telecom? 

Amir Dorot: Yes, we are moving toward decentralized networks. 

Today's telecom structure is already somewhat decentralized but consists of centralized “islands.” The transition to Web3 telecom networks will create truly open, decentralized networks that telecom providers do not control. Instead, any service provider will be able to connect to the network without owning or managing it. 

This shift is happening in other domains, such as Lens Protocol as an alternative to Facebook and Bluesky as a decentralized alternative to Twitter. In the future, users will carry their identities across service providers, no longer tied to a single telecom provider. Instead of having a locally assigned phone number, they will have a global identity based on blockchain. 

Supertrends: With the rise of 5G, how can blockchain be leveraged to enhance network efficiency, security, and monetization? 

Amir Dorot: Blockchain does not depend on a specific generation of GSM networks. Since 3G, as long as a stable IP-based connection exists, blockchain-based solutions can function. 

5G simplifies things but does not introduce any new blockchain-specific capabilities. The main potential impact is using crypto identities instead of existing authentication protocols, which 5G networks might be more flexible to accommodate. 

Supertrends: What major trends do you foresee shaping the intersection of blockchain and telecom in the next 5–10 years? 

Amir Dorot: The biggest trend will be Web3 identity adoption. Once we use it as our “phone number” - the rest will be a result of that.  

Once users move to crypto wallet identities, roaming solutions, number portability, and regulatory constraints will become irrelevant. Telecom providers will become data carriers only, similar to how ISPs today provide internet connectivity while streaming, social media, and voice services operate independently. They will be just the network layer (coverage) to provide you with data. Any other service will be provided by a 3rd party company. 

Even today, you take data from your operator - but you use Netflix or Youtube for movies - for social you use Facebook, TikTok or Snapchat. For voice you use WhatsApp, OpenPhone, SecNum or any other VOIP solution. 

HOWEVER, this shift will take more than 10 years. Traditional regulated phone numbers will persist for a while, but gradually, more subscribers will rely solely on data without using a phone number from their provider. 

Shifting to a world without numbers - it can take a generation. 

Supertrends: Do you believe blockchain will become a standard component of telecom infrastructure, or will it remain a niche solution for specific use cases? 

Amir Dorot: Yes. Blockchain will not only become a standard component of telecom infrastructure, but it will also evolve into the primary and most essential telecom network for voice and, eventually, for data. 

Supertrends: How do you see blockchain enabling new business models in telecom, such as tokenized services or decentralized mobile networks? 

Amir Dorot: Here is an example of a use case: Today, a small shop owner who wants a “phone number” can purchase one from a telecom provider, allowing potential and existing customers to contact them. 

However, with a Web3 or Web2 identity, the shop—such as “delft-bloemen.nl”—could use its existing domain (DNS) address as its phone number identity. Now, if someone wants to call the shop, they can simply dial: support@delft-bloemen.nl. That’s it. And it is global. Not local. Anyone in the world can dial this “number”. 

Another example is an enterprise that wants to deploy phone “numbers” to all the employees.  How can they do that? Send an e-mail to all the employees to download the VOIP app. They will verify their e-mail identity. That’s it. Now they have phone “numbers”. Now they can call david@cellact.nl or john@cellact.nl and also be 100% sure that the call is from another employee working for the same company. 

Supertrends: With AI and edge computing becoming more prominent in telecom, how do you think blockchain will integrate with these technologies? 

Amir Dorot: There is no direct correlation between blockchain and AI. These are parallel technological advancements that do not overlap but rather complement each other. 

AI will enhance areas such as fraud detection, traffic analysis, and customer support automation. It will also be used for predictive analytics, sales optimization, and content generation—tasks that were traditionally handled by humans. 

Blockchain, on the other hand, will secure identity authentication and ensure open access to telecom networks. While AI and blockchain serve distinct purposes, they can work together to strengthen telecom infrastructure. 

Supertrends: What are the biggest regulatory issues telecom companies face when implementing blockchain solutions? 

Amir Dorot: Blockchain is often perceived as a threat by regulators due to its decentralized nature, which lacks a single point of control that the regulator can put their hand on. The decentralized finance (DeFi) sector has only reinforced this perception. 

Ironically, a Web3-based unregulated telecom solution could be more secure and accurate for end users than a traditional GSM-regulated system. However, achieving this transition will be met with regulatory resistance. 

Telecom providers favor regulation because it protects them from competition. They can control GSM-based subscribers, but they cannot exert the same level of control over Web3 users. As a result, they may work closely with regulators to delay or restrict blockchain adoption as much as possible. 

That said, Web3's benefits in terms of privacy and security make this transition inevitable. While telecom providers may slow the process, they will not be able to stop it entirely. 

Supertrends: Many businesses are still hesitant about blockchain adoption. What would you say to telecom executives who are skeptical about its value? 

Amir Dorot: I would say that blockchain adoption is inevitable. If you want to survive in the industry, you need to get involved. The transition will be met with resistance, but ultimately, open blockchain-based platforms will prevail. 

The telecom network will no longer be an exclusive domain for licensed operators. Instead, it will be open to any provider capable of delivering quality services. Customers will have the freedom to choose their service providers without being restricted by traditional telecom regulations. 

Telecom providers can start by implementing blockchain for internal solutions. However, in the long run, they will need to connect to open networks and expand their reach by supporting Web3 subscribers. 

Supertrends: How do you see partnerships between telecom providers and blockchain companies evolving? Are there any standout collaborations today? 

Amir Dorot: Telecom providers will integrate blockchain networks into their infrastructure. There will be multiple blockchain networks with interoperability between them. Telecom providers will be able to select the networks they want to connect to for enhanced connectivity. 

Notable collaborations today include Helium, which offers an alternative internet service and partners with telecom operators in the USA to improve coverage in areas with poor connectivity. 

DentTelecom uses blockchain for internal administrative management, replacing traditional backend systems. 

At Cellact, we utilize the Arnacon Network as the foundation for traditional GSM numbers (both landline and mobile), as well as Web2 identities (such as email) and Web3 identities (such as Ethereum Name Service—ENS). Our application leverages the blockchain network for voice call establishment. 

Supertrends: What are the risks telecom companies should consider before integrating blockchain into their operations? 

Amir Dorot: The primary risk is the scalability of blockchain technology. While current blockchain networks can support increasing user adoption, the rate of growth must align with system capacity. If Web3 adoption surges unexpectedly, there may be resource shortages in blockchain infrastructure. To mitigate this, Layer 2 blockchain solutions may offer a better alternative than Layer 1. 

Another risk involves network interoperability. With multiple blockchain-based telecom networks emerging, there is a risk that these networks could become isolated rather than seamlessly integrated. While solutions will likely develop to address this challenge, widespread adoption will depend on user demand. 

Supertrends: Looking ahead, what advice would you give to telecom companies that want to stay ahead in blockchain innovation? 

Amir Dorot: Start integrating blockchain now, whether for internal operations or external services. You need to experiment and feel what the technology brings to the table.   

For example, caller ID spoofing remains a significant problem, even with STIR/SHAKEN protocols. However, identity spoofing is virtually impossible in Web3 due to blockchain’s inherent security features. Instead of patching legacy telecom systems, we should focus on adopting blockchain-based solutions that natively resolve such issues. 

Blockchain will allow you to focus on your business without the legacy support required in the current systems. 

Blockchain has the potential to transform the telecom industry, though the transition will be gradual. Beyond security improvements, blockchain’s ability to create a transparent, verifiable record of interactions will drive greater trust between providers and consumers. By reducing fraud, ensuring billing accuracy, and enabling open-access networks, blockchain will ultimately foster a more efficient and consumer-friendly telecom ecosystem. As telecom providers navigate this shift, those who embrace blockchain technology early will be best positioned to lead the industry into the Web3 era.