Telecom’s Future Lies in Decentralized Networks

The telecommunication industry is at a critical moment. While worldwide data sumping skyrockets, traditional telecom operators are confronted with a perfect storm of challenges: stagnant growth of subscribers, expensive infrastructure maintenance and an insatiable demand for bandwidth. This capacity crisis is not just a problem for carriers; It is an imminent crisis for consumers who are increasingly dependent on seamless connectivity in their daily lives.

The telecom squeezes

In 2024 AT&T $ 4.7 billion projected on the lease costs of the site. Add Verizon and T-Mobile, and the annual costs of rental contracts for wireless coverage in the US are approaching no less than $ 15 billion. As the infrastructure costs rise, the margins on internet access will increase slower for telecom companies. In the meantime, the question continues to explode, with global data consumption about telecom networks that are expected to grow by almost 2x by almost 2x in 2027.

The attempts of the industry to find new income flows, such as via fixed wireless access, used to connect internet users at home via mobile connections, will aggravate the problem by putting extra voltage on cellular capacity. As a result, consumers are confronted with the prospect of degraded service and rising costs.

Enter the Decentralized Physical Infrastructure Network (Depin) in one solution that promises to tackle the capacity dilemma frontally. In a decentralized model, infrastructure is the property, implemented and maintained by several parties instead of a central authority as a large telco operator. In exchange for sharing the costs and the work of using new network capacity, infrastructure owners are rewarded with blockchain stimuli.

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By using distributed sources and blockchain technology, carriers can see:

  1. Fast coverage: Depin networks can create coverage/capacity where the most needed and that coverage implement faster than with the traditional model.
  2. Capex-free scalability: Expansion is no longer limited by capital -intensive infrastructure projects.
  3. Lower OPEX costs: By distributing the implementation and maintenance work, operational costs reduce operational costs and benefit from the consumers of the savings.
  4. Improved performance: Decentralized networks can give operators the opportunity to choose which radios that users us users for specific regions and times of the day.
  5. Increased trust: By offering an unchanging and transparent ledger, Blockchain ensures the visibility of the quality of the experiential statistics in a distributed system.

Overcome resistance to change

For many Telecom managers, embracing decentralization is an important cultural shift. But they would be wise to consider history if they look at the future of their industry. For example, when the first switch from analogue to digital networks began in the nineties, consumers and industrial managers hesitated to upgrade their systems. But once implemented, improved 2G -mobile technology capacity and efficiency, and also improved speech quality, SMS messages and data services that would lay the foundation for subsequent generations of mobile services.

Concern about the quality of the service, control and security no longer have to scare a transition to a decentralized network. Each of these issues can be tackled satisfactorily by standards -based implementations and robust management models to achieve the long -term benefits of the use of decentralized models, as well as the stage for future innovation and improvements. By working together with Depins, Telecom can place itself in the foreground in a new era in connectivity.

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Decentralizing traditional carriers: making coverage and data equipment

One of the most promising access points for Depin is through making coverage and carrier -offload. Decentralized telecom networks can create cover where it did not exist before. Currently, carriers identify regions where connectivity is needed, and business development teams work with local property owners to lease and develop sites for extensive coverage. It is a time and resource-intensive process with considerable costs attached.

However, Depins can supply a new “point-and-shoot” model in which carriers indicate directly to the decentralized builder community where coverage is needed. Carriers can use aids such as the helium planner to mobilize communities to create cover where they know it will be used, which benefit both builders and mobile customers and immediately improve the operator’s network.

Helium is a good example of a decentralized telecom network that is successfully used by traditional carriers. The network is already working with various telco’s, both in the US and in Mexico, the latter through his partnership with Telefónica – proof of the growing acceptance of decentralized solutions by large players in the industry.

By encouraging individuals and companies to operate hotspots, more than 400,000 subscribers of American Telco carriers make a daily connection to the helium network to gain access to the internet via hotspots. With more than 500 terabytes to data transfer in helium, the network has proven that traditional telcos can embrace the capacity, safety and effectiveness of decentralized networks.

Embrace a decentralized future

Decentralized network expansion will become even more critical as 6G rolls out nationally in the coming years. As mentioned in the recently released 6G vision statement of the Wireless Broadband Alliance (WBA), we need more robust and deliberate cooperation in the industry to “achieve ubiquitous connectivity” to overcome expensive cellular infrastructureupgrades. The industry needs cost -effective offload solutions to efficiently roll out this next generation of wireless technology.

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While the telecom industry is struggling with unprecedented challenges, decentralized networks offer a path ahead. By using blockchain technology, embracing innovative partnerships and resetting the nature of connectivity, telecom leaders will be able to thrive in the coming decades.

Credit : cryptonews.net