Telcoin - The Coin that Connects Us all in The Future [A submission for @originalworks writing competition]
This is a submission for a writing competition by @originalworks about Telcoin. Those who are interested, please join the competition too :)
I can see the potential in this new business model with the vast existing consumer segment. However, the tough question is how to penetrate.
Previously, telecommunication business focused on providing a connection for the people. Slowly, it changes to provide more and more bandwidth for the people. Hence, the heaviest cost structure for a telecommunication company is to set up better grid system that connects people to larger bandwidth. With the basic principle of, the faster you are, the better your value proposition is.
Besides that, telecommunication company has diversified their business with apps that provide different goods and promotions to be sold at the platform. Usually, they are selling promotional goods that behave more like an advertisement. This is due to the large customer base they have which makes them a good platform to make an advertisement.
Now, Telcoin strategically positions itself as the cryptocurrency provider for all the telco companies which is a clever move. Here are some of my thoughts about it:
Maybe there are no more postpaid or prepaid charges.
Perhaps there will be no need for telecommunication plan charges anymore. We can pay through Telcoin on what we consume. This allows people to have a sense of control on mindful consumption on data and fairness. We can imagine that as a telecommunication wallet that we can bring along globally.
Net neutrality will not stop Telcoin’s business.
Although there may be an issue with net neutrality like how Portugal may want to proceed, people will still need to stay connected with the world, especially businesses. Thus, Telcoin’s business model is quite resilient in a way.
With Telcoin, the penetration of cashless culture will definitely go deeper into the society.
Like what is happening now in China with its Alipay and Wechat Pay, it is crazy to imagine such cashless society in a decade ago. However, what these e-wallets hold are cold hard cash for CNY than crypto. Telcoin is more ambitious to aim for the world market, which needs a lot of effort to lobby all the big telecommunication company to adopt and use the Telcoin. This will be the biggest challenge. If I imagined myself as the boss of the telecommunication company, I am still searching for the attractive value proposition from Telcoin. Although Telcoin had proposed a unique business model that focus to disrupt the global remittance market, I can’t seem to understand how it can profit the telecommunication company which was also mentioned in the Whitepaper.
By holding an amount of Telcoin, it will be easy for travelers to stay in touch with friends and family.
However, this will require Telcoin to cover almost most of the countries in the world to make such an impact like how Mastercard, Visa, and American Express are doing. That will be also one of the challenges for the Telcoin to scale.
As a whole, I believe Telcoin is clever to utilize telecommunication companies as the channel to distribute their cryptocurrency, but the question is back to how much value can Telcoin bring to the companies will decide their success.
telcoin2017
Competition Link: https://steemit.com/cryptocurrency/@originalworks/150-steem-sponsored-writing-contest-telcoin
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