The telecommunications industry is at a critical time. Since global data consumption skyrockets, traditional telecommunications operators face a perfect storm of challenges: stagnant subscriber growth, costly maintenance of infrastructure and an insatiable demand for bandwidth. This capacity scare is not just a problem for carriers; It is a threatening crisis for consumers who are increasingly dependent on trouble -free connection in their daily lives.
Telecom clamp
In 2024, AT&T projected $ 4.7 billion dollars in leasing costs. Add Verizon and T-Mobile, and the annual cost of leases for wireless coverage in the United States is approaching a staggering $ 15 billion. As infrastructure costs rise, margins on Internet access are expected to rise slower for telecommunications companies. Meanwhile, demand with global data consumption over telecommunications will explode, which is expected to grow by almost 2x in 2027.
Industry’s attempts to find new revenue streams, such as through fixed wireless access, used to connect Internet users to the home via cellular connections will aggravate the problem by putting additional load on cellular capacity. As a result, consumers face the prospect of deteriorating service and rising costs.
Go into the decentralized physical infrastructure network (Depin) -A solution that promises to tackle the capacity dilemma head-on. In a decentralized model, infrastructure is owned and maintained by several parties rather than by a central authority as a large Telco operator. In return for sharing costs and work on implementing new network capacity, infrastructure owners are rewarded with blockchain incentives.
By utilizing distributed resources and blockchain technology, carriers can see:
- Creating Quick Coverage: Depin Networks can create cover/capacity where it is most needed and insert this cover faster than with the traditional model.
- CAPEX-free scalability: The expansion is no longer limited by capital -intensive infrastructure projects.
- Reduced OPEX costs: By distributing implementation and maintenance work, operators reduce operating expenses and consumers benefit from the savings.
- Improved Performance: Decentralized networks can allow operators to choose which radios earn that users for specific geographies and times of the day.
- Increased confidence: By providing an unchanging and transparent headbok, the blockchain ensures the visibility of the quality of experience metrics in a distributed system.
Overcome resistance to change
For many telecomers, the embrace of decentralization represents a significant cultural shift. But they would be wise to consider the story when they look at the future of their industry. For example, when the initial switch from analog to digital networks began in the 1990s, consumers and industrial -related hesitant were hesitant to upgrade their systems. However, once implemented, 2G cellular technology improved capacity and efficiency and also improved voice quality, SMS messages and data services that would lay the basis for subsequent generations of mobile services.
Concerns of quality of service, control and security no longer need to deter a transition to a decentralized network. Each of these questions can be resolved satisfactorily through standard -based implementations and robust management models to gain the long -term benefits of adopting decentralized models as well as set the stage for future innovation and improvement. By working with Depins, telecommunications can place itself at the forefront of a new era in connection.
Decentralization of traditional carriers: cover creation and data relief
One of the most promising entry points for depin is via coverage of coverage and carrier by carrier. Decentralized telecommunications lovers can create coverage where it did not exist before. Currently, carriers identify regions where connection is needed and business development teams are engaging with local property owners to lease and develop places for expanded coverage. It is a time and resource-intensive process of significant costs attached.
However, Depins can deliver a new “point-and-shoot” model, where carriers indicate directly to the decentralized builder community where coverage is needed. Airlines can use tools such as the helium planner to mobilize societies to create coverage where they know it will be used that benefits from both builders and mobile customers and improves the operator’s network instantly.
Helium stands as a good example of a decentralized telecommunications company that is successfully used by traditional carriers. The network is already working with several Telcos, both in the US and Mexico, the latter through its partnership with Telefónica – a testimony to the growing acceptance of decentralized solutions from major industry players.
By incenting individuals and businesses to operate hotspots, over 400,000 subscribers of US Telco aircraft companies daily to Helium Network to access the Internet via hotspots. With over 500 terabyte data transfers to Helium, the network has proven that traditional Telcos can include capacity, security and efficiency of decentralized networks.
Embrace a decentralized future
Decentralized network expansion will be even more critical when 6G rolls out nationwide in the coming years. As stated in the recently released 6G vision declaration of Wireless Broadband Alliance (WBA), we need more robust and intentional collaboration across the industry to “achieve ubiquitous connection” to overcome expensive cellular infrastructure upgrades. The industry needs cost-effective offoading solutions to effectively roll out this next generation of wireless technology.
When the telecom industry is struggling with unprecedented challenges, decentralized networks offer a path forward. By utilizing blockchain technology, embracing innovative partnerships and reimaginating the nature of the connection itself, telecommunications will be able to thrive in the coming decades.
