Telefónica Taps Blockchain Tech to Boost Mobile Coverage in Mexico
Summary:
Telefónica, a leading telecommunications provider, partners with Nova Labs to leverage blockchain technology to cut infrastructure costs and broaden its mobile services in Mexico. The company will use the Helium Network's decentralized system to offer better connectivity and handle network congestion, particularly during peak usage times. The project, critical to gauging performance, customer satisfaction, and cost-efficiency, may expand to other regions. Telefónica, holding an 18.3% share of Mexico's mobile market, aims to incorporate this blockchain-enabled solution into its mobile network services. Telefónica has previously integrated crypto payments and continues to develop blockchain solutions.
Leading telecommunications company, Telefónica, will be utilizing blockchain technology to reduce infrastructure expenses and widen its mobile service in Mexico. Through its collaboration with Nova Labs, the organization behind the Helium Network, Telefónica plans to extend its current coverage in Mexico City and Oaxaca, as stated in a press release dated January 24.
Helium's hotspots essentially serve as nodes lending wireless network support to Internet of Things (IoT) devices. Telefónica can expand its coverage area, including distant localities, via Helium’s decentralized network by enabling hotspots to corroborate wireless action and provide network coverage.
The implementation of a decentralized network could render improved connectivity during high-demand periods as Telefónica intends to relay data traffic to the Helium ecosystem. Consequently, when a user's device catches the range of a Helium hotspot, it can switch from Telefónica’s conventional cell network to the Helium network, lessening connectivity overload.
Telefónica customers shall be recognized through their SIM cards, confirmed Telefónica, stressing that it will retain total authority over clients' actions via its unique management system. José Haro, Telefónica’s chief wholesale officer, expressed that the undertaking is an aspect of the enterprise's attempt to enhance coverage through cost-efficient, community-driven technologies.
The project in Mexico is paramount for assessing the efficacy, customer approval, and associated expenses of the solution, stated Haro. The company expects to include the solution in its mobile network offerings across various regions, provided the project is successful. In Mexico, Telefónica operates under the brand name Movistar and held 18.3% of Mexico’s mobile market in 2022, as per Statista data.
The Spain-based company operates in over 17 countries throughout Europe and Central and South America. It reported over 272 million mobile subscribers in 2017. Telefónica has also engaged in multiple ventures linked to the Web3 space, including enabling payments in cryptocurrencies like Bitcoin, Ether, and USD Coin via its online tech marketplace since September 2022. The company’s tech division, Telefónica Tech, continues to participate in the development and application of blockchain solutions.
Published At
1/24/2024 8:10:00 PM
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