How DePINs May Disrupt The Trillion-Dollar Telecom Industry

Decentralized physical infrastructure networks, or “DePINs," have become a hot topic in the crypto industry, driven by their potential to address real-world challenges in data and energy.

DePIN networks work by integrating with physical infrastructures. Blockchain technology and token incentives are leveraged to ensure more efficient business operations.

According to research firm Messari, "The DePIN addressable market is currently valued at $2.2 trillion and has the potential to reach $3.5 trillion by 2028."

Therefore, it shouldn't come as a surprise that a number of DePIN projects have emerged. For instance, DePIN for the telecommunications industry is quickly gaining traction.

DePIN Solves Challenges for the Telecom Industry

Data from The Business Research Company shows that the global wireless network infrastructure industry is valued at $3.1 trillion. This number is expected to reach about $3.9 trillion by 2028.

Yet unfortunately, the telecommunications industry faces a number of ongoing connectivity and technology challenges.

Carlos Lei, CEO and Co-Founder of Uplink, told Cryptonews that the connectivity market today is broken. "With billions of devices in need of proper connectivity and numerous organizations seeking cost-effective and reliable solutions, the traditional methods of infrastructure deployment are financially unsustainable," Lei said.

He added that leading telecommunication companies face significant capital expenditures (CaPEX) in deploying connectivity infrastructure. "This is often without clear projections on when they will achieve a return on investment," he said.

DePIN seeks to solve challenges related to telecom connectivity by taking a decentralized approach.

For example, DePIN projects may allow people to buy antennas to set them up to provide network connectivity. This takes power away from centralized network providers, while creating additional coverage.

Domenic Carosa, Co-Founder and Chairman of Hivello – a DePIN network aggregator – told Cryptonews that one of the core problems DePINs solve is the reduction of redundancy and inefficiency in infrastructure development.

"By decentralizing the ownership and management of telecommunications infrastructure, DePIN can lead to more optimized resource use, lower costs, and improved access in underserved areas," Carosa said.

A Closer Look at DePIN for The Telecom Industry

While DePIN is relatively new, several projects are already showcasing its potential applications within the telecom industry.

Amir Haleem, CEO at Helium Mobile and Nova Labs, told Cryptonews that Helium Mobile is on a mission to disrupt the wireless telecommunications industry with a decentralized, community-built and owned wireless network, making affordable, unlimited mobile services a reality.