The telecommunication industry stands in a critical juncture. Like global data consumption skyrockets, traditional telecom operators face a perfect storm of challenges: inert the growth of subscribers, costly infrastructure maintenance and an unimaginable demand for bandwidth. This crunch capacity is not just a problem for carriers; It is an emerging crisis for consumers who are more reliant on the seamless connection to their daily life.
The telecom squeeze
In 2024, AT&T is expected to be $ 4.7 billion in site rent costs. Add to Verizon and T-Mobile, and the annual cost of leases for wireless incidence in the US has approached a tedious $ 15 billion. As infrastructure costs rise, internet accessing margins are expected to rise more slowly for telecom companies. Meanwhile, demand continues to explode, with global data consumption on telecom networks expected Grew by about 2x by 2027.
The industry attempts to find new income streams, such as by Fixed wireless accessUsed to connect Internet users at home through cellular connections, will exacerbate the problem by placing additional strain on cellular capacity. As a result, consumers are faced with the hope of a disgruntled service and increased costs.
Enter the decentralized physical network of infrastructure (DEPIN) —a solution that promises to meet the head-on dilemma capacity. In a decentralized model, the infrastructure is owned, deployed and maintained by many parties than a central authority such as a large telco operator. In exchange for sharing the cost and work of removing the new network capacity, those with infrastructure will be rewarded with blockchain incentives.
By seizing the shared resources and technology of blockchain, carriers see:
- Fast Creating Scope: Definit networks can create scope/capacity where most are required, and deploy the scope faster than the traditional model.
- Capex-Free Scalability: Expansion is no longer limited by capital infrastructure projects.
- Opex costs reduced: By distributing the expansion and maintenance of the work, operators reduce operating costs and consumers benefit from savings.
- Improved performance: Decentralized networks can provide operators the ability to choose which radios serve which users for specific geography and day time.
- Increased trust: By providing an unchanged and transparent ledger, the blockchain ensures the ability to detect the quality of experiences of experience in a shared system.
The overcome resistance to change
For many telecom executives, embracing decentralization represents a significant cultural shift. But they want to consider history as they look at the future of their industry. For example, when the initial transition from the analog to the digital networks began in the 1990s, consumers and executive executives were concerned to upgrade their systems. But once implemented, 2G cellular technology improved capacity and efficiency, and also improved voice quality, SMS messaging and data services that would provide a foundation for subsequent generations of mobile services.
Concerns about the quality of service, control and security do not need to suppress a transition to a decentralized network. Each of these issues can be satisfactory discussing through implementations based on standard and stable management models to achieve long-term benefits of adoption of decentralized models, as well as set the stage for future change and improvement. By working with the depins, telecoms can position themselves ahead of a new connectivity period.
Determination of Traditional Carriers: Creating Scope and Data Offer
One of the most promising points of entry for the depin is by creating the scope and offering of the carrier. Telecom decentralized networks can create ranges where they have not existed before. Currently, carriers recognize regions where connectivity is required, and business -development teams are interacting with locals with real estate owned to rent and develop sites for to the expanded range. It is an hour- and process intensive resource with a huge cost attached.
Depins, however, can deliver a new “point-and-shoot” model where carriers indicate directly to the decentralized builder community where the range is required. Carriers can use tools like Helium Planner to mobilize communities to create range where they know they will use, benefit both builders and mobile customers, and immediately enhance the operator’s network.
Helium stands as a prime example of a decentralized telecom network that has been successfully used by traditional bearers. The network cooperates with many telcos, both in the US and Mexico, the latter through it Collaboration with Telefónica – A testament to the growing acceptance of decentralized solutions of major players in the industry.
By investigating individuals and businesses to operate hotspots, more than 400,000 US Telco’s carriers subscribers connect to the helium network daily to access the Internet through hotspots. With over 500 terabytes of data transfer to helium, the network has proven that traditional telcos can embrace the capacity, security and effectiveness of decentralized networks.
Embracing a decentralized future
The decentralized network expansion will be more critical since the 6G roll out nationwide in the coming years. As stated in recently released 6g statement of vision From the Wireless Broadband Alliance (WBA), we will need a more stable and accidental cooperation throughout the industry to “achieve stunning connections” to overcome costly cellular infrastructure upgrades. The industry requires cost offloading solutions to properly release the next generation of wireless technology.
While the telecom industry is in contact with the uninitiated challenges, decentralized networks have offered a path. By seizing blockchain technology, embracing innovative partnerships and repairing the very nature of connectivity, telecom leaders may develop in the coming decades.
