Telecommunications giant Telefónica has announced that it will use blockchain technology to reduce infrastructure costs and expand its mobile coverage in Mexico. Through a partnership with Nova Labs, the company behind the Helium Network, Telefónica will integrate Helium Mobile Hotspots to extend its coverage in Mexico City and Oaxaca.
Helium hotspots are nodes that offer wireless network coverage to Internet of Things (IoT) devices. Telefónica can expand its coverage, particularly in distant places, by integrating Helium's decentralized network, which enables hotspots to validate wireless activities and give network coverage.
For users, adopting a decentralized network may result in improved connectivity during peak usage times. Telefónica intends to offload data traffic to the Helium ecosystem, allowing customers' devices to switch between the standard cellular network and the Helium network when in range of a hotspot. This can help to reduce connectivity congestion and boost overall network performance.
Telefónica's chief wholesale officer, José Haro, emphasized that the initiative is part of the company's efforts to expand coverage through lower-cost and cooperative-based technologies. He expressed optimism that if successful, the solution could be incorporated into Telefónica's mobile networks in other countries in the region.
In Mexico, Telefónica operates under the brand Movistar and holds a significant market share. The company has a history of embracing innovative technologies and has several initiatives tied to the Web3 space. In September 2022, Telefónica enabled payments with cryptocurrencies like Bitcoin, Ether, and USD Coin via its online tech marketplace.