On November 2, 2023, Aleph Zero made a groundbreaking announcement: Deutsche Telekom, a telecommunications giant, had established itself as a validator on Aleph Zero's Mainnet and Testnet. This marked the first instance of a large company joining the privacy-enhancing blockchain network, a clear testament to Aleph Zero's privacy-enabling capabilities and enterprise-grade scalability potential.
Fast forward to January 2024, Deutsche Telekom made its debut at Aleph Zero's inaugural hackathon, CTRL + Hack + ZK. This event brought together a community of non-EVM network enthusiasts, industry experts, and highly skilled 'techno-vert' developers who captivated the audience with their proficient dispensation of knowledge. The technical expertise covered various subjects, including Telco/DePIN, DID, tooling and infrastructure, gaming, and others.
During one of the workshop sessions at the CTRL + Hack + ZK hackathon, Tobias Jung, the workshop moderator from Deutsche Telekom, provided valuable insights into the building on the "Telco Innovate Track" using tools from Aleph Zero. A Q&A session showcased how telcos can facilitate the utilization of decentralized technologies in areas such as Decentralized IDs and wallets, Decentralized physical infrastructure Networks (DePIN), and others.
Deutsche Telekom's Role in the Web3 Space
1. Voice: Communication at scale:
Deutsche Telekom, at its core, is a telco company deeply rooted in providing infrastructure for communication at scale. For over 20 years, they have facilitated mobile phone communication through telecommunication towers, enabling users to connect with friends via voice calls. These towers are erected to facilitate the transmission of signals for various forms of communication, including mobile phone services. Telco towers play a crucial role in expanding the coverage and reach of telecommunication networks by providing elevated platforms for antennas and equipment, enabling the transmission of voice and data signals across a specific geographic area.
2. Internet (web2): Information at scale:
As a major player in the telecommunications industry, Deutsche Telekom has played a pivotal role in providing infrastructure for the Internet over the past two decades. From laying cables in the ground to connecting users to Web2, they have contributed significantly to information dissemination at scale. The laying of cables involves the physical installation of various types of cables, including optic cables, to establish the infrastructure that supports communication networks. This process encompasses the deployment of cables along designated routes, connecting key points to create a network backbone. Optic cables, known for their ability to transmit data using light signals, are often utilized for high-speed and reliable communication.
3. Blockchains (web3): value at scale:
In the last four years, Deutsche Telekom has actively entered the space of public blockchain networks, offering infrastructure support for decentralized ecosystems. Initiatives like joining the Chainlink decentralized Oracle network showcase their dedication to providing value at scale in Web3. Deutsche Telekom’s involvement extends to proof-of-stake-based consensus blockchains, with successful engagement in projects like Flow as well as some experience with Substrate through the Polkadot network. Telekom’s recent venture into the Aleph Zero blockchain reflects their enthusiasm for exploring new horizons, particularly the privacy-enhancing features in smart contracts. While their focus has primarily been on the infrastructure layer, there is much excitement about the potential use cases in Web3. Notably, Telekom has already garnered recognition and trust from eight (8) blockchain networks with over 200 validators, safeguarding assets totaling over 60 million euros across Chainlink, Ethereum, Polkadot, Polygon, Energy Web, Celo, Flow & other networks.
How Can Telcos Utilize Decentralized Technologies?
According to Tobias, there are five key areas where telcos can deploy the strength of decentralized technologies to provide solutions that can improve customer relationships with web3 models. This includes using web3 models to develop better products, simplifying customer interactions in retail and online via web3, tracking, preventing, or offsetting carbon emissions through blockchain tech operations, onboarding the next 1 billion users, and establishing a participatory infrastructure that excels in crowd-sourcing and technologies
Customer Engagement Loyalty: A significant focus of Deutsche Telekom is on improving customer engagement and loyalty. The goal is to enhance interactions with customers, making them more attached to Deutsche Telekom, thereby incentivizing them to use telecom services and providing rewards for their loyalty. Looking into web3 and innovative ownership models like token-based concepts such as NFTs and loyalty tokens, there's potential for exciting use cases. These approaches offer a fun and engaging way to spark customer interest and enthusiasm for Deutsche Telekom services, particularly through the creative implementation of loyalty tokens or NFTs.
Sustainability: Deutsche Telekom is strategically advancing its sustainability goals within the framework of its "Horizon" strategy, a key component of the "Capital Markets Day Ambition (2021-2024)" as outlined in the strategy and transformation section of the Deutsche Telekom Company presentation 2023. Prioritizing sustainability, the company is actively addressing carbon emissions and exploring innovative web3 solutions, collaborating with Celo to potentially tokenize carbon footprints. With a firm commitment to becoming completely carbon-negative by 2030, Deutsche Telekom aims to offset more emissions than it generates, aligning with the forward-looking objectives encapsulated in "Horizon Three" – the phase dedicated to next-gen delivery for enabling growth. Despite challenges as one of Germany's major energy consumers, the company remains dedicated to achieving environmental responsibility and integrating sustainable practices into its operations, marking a proactive step toward leading as a digital Telco with a strong emphasis on environmental stewardship.
Decentralized ID & Wallets: Deutsche Telekom is strategically focusing on integrating decentralized identity and wallets into Web3 adoption. Emphasizing the critical role of wallets in onboarding users, the ongoing development of their Web3 infrastructure, including the Aleph zero network, aims to expose the company's customer base to the decentralized ecosystem. Notably, decentralized applications (DApps), particularly those centered on loyalty-based rewards and engaging games, are seen as potential tools to strengthen customer bonds. In the entertainment and media sector, leveraging strong partnerships, especially in sports sponsorship, offers avenues for enhancing customer experiences.
Network and Infrastructure: The speaker addressed the role of telcos in enabling the development of blockchain infrastructure, particularly focusing on the practical aspects of building their own infrastructure layer. Responding to a question posed at the Q&A session of the workshop, the discussion delves into the decision-making process for choosing layer one blockchain infrastructure. The choice of infrastructure depends on the specific use case, emphasizing an agnostic approach that considers a multi-chain future. Acknowledging the significance of the mobile phone number as a future identifier, the speaker highlights the necessity of not being limited to one blockchain.
Conclusion
Deutsche Telekom, a telecommunications powerhouse with a global presence across 50 countries, boasts a workforce of over 205,000 and a customer base exceeding 240 million mobile and 21.4 million broadband users. Its extensive impact encompasses fixed networks, broadband lines, TV, and internet services, and serves 8.3 million TV customers, along with 4.1 million IPTV, satellite, and cable customers in Europe. In the corporate landscape, the company contributes significantly to the industry, yielding a staggering revenue of 114.4 billion Euros in 2022. Noteworthy is its subsidiary, Deutsche Telekom MMS, specializing in cloud infrastructure for robust blockchain networks. Tailored for high-profile enterprises like Ethereum or Polkadot, the hosted nodes play a pivotal role in transaction recording, verification, and validation, enhancing overall blockchain network security. This strategic amalgamation of global reach, technological prowess, and adaptability positions Deutsche Telekom as a key player in the integrated telecommunications landscape.
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