Telecommunications giant Telefónica has opted for blockchain technology to decrease infrastructure costs and extend its mobile coverage in Mexico. In collaboration with Nova Labs, the creator of the Helium network, Telefónica aims to broaden its physical coverage in Mexico City and Oaxaca by utilizing Helium mobile hotspots, as announced on January 24.
Helium's hotspots function as nodes that offer wireless network coverage to Internet of Things (IoT) devices. By integrating Helium’s decentralized network, Telefónica can enhance its coverage by allowing hotspots to validate wireless activity and provide network coverage, especially in remote areas.
The adoption of a decentralized network by users could lead to improved connections during peak usage times, as Telefónica intends to divert data traffic to the Helium ecosystem. This means that when a user's device is within the range of a Helium hotspot, it can switch from the traditional cellular network provided by Telefónica to the Helium network, helping to alleviate connection congestion. Telefónica clarified that users will be authenticated via SIM cards, with the company maintaining complete control over customer activity through its proprietary management system.
Telefónica's Chief Wholesale Officer, José Haro, stated that this move is part of the company’s strategy to extend coverage through cost-effective and collaborative technologies. He emphasized that the project in Mexico is crucial for evaluating the performance, customer satisfaction, and associated costs of the solution. If successful, Telefónica aims to incorporate this approach into its mobile network portfolio in various countries in the region.
In Mexico, Telefónica operates under the brand Movistar and is projected to capture 18.3% of the country's mobile market by 2022, according to Statista. While headquartered in Spain, Telefónica operates in over 17 countries across Europe and Central and South America. The company has been actively involved in the Web3 space, introducing cryptocurrency payments, including Bitcoin, Ethereum, and USDC, through its online technology marketplace in September 2022. Additionally, Telefónica Tech, the company's technology arm, has played a role in developing and implementing blockchain solutions.
