Jack Kubinec

<div id="highlights-block_6329cfbaf82f3" class="highlights">
 <ul>
 <li>The partnership allows Helium subscribers to use a combination of Helium and T-Mobile’s 5G networks while earning crypto rewards</li>
 <li>Helium needs to increase its number of 5G hotspots from 5,000 to 50,000 to meet T-Mobile’s goals</li>
 </ul>
 
</div>



Decentralized wireless provider Helium has struck a deal to mesh its burgeoning 5G network with T-Mobile’s cellular coverage.&nbsp;



The partnership is set to spawn what the companies have dubbed Helium Mobile, a subscription service starting at just $5 per month that runs Helium’s decentralized network alongside T-Mobile’s more established 5G grid.&nbsp;



The idea is to reward customers with Solana-native MOBILE tokens in exchange for sharing their data about Helium’s coverage quality. The initiative is set to launch in the first quarter of 2023.



Helium re-branded as a crypto company in 2019 to much fanfare, <a href="https://cms.blockworks.co/andreessen-horowitz-joins-111m-investment-in-blockchain-powered-5g-network-helium/" target="_blank" rel="noreferrer noopener">raising a $111 million venture round</a> led by Andreessen Horowitz.



The cryptocurrency startup works by relying on users <a href="https://www.helium.com/mine" target="_blank" rel="noreferrer noopener">deploying crypto mining devices</a> as nodes — which serve as wireless hotspots — in exchange for rewards denominated in Helium’s native HNT token. The company is hoping to carve itself a place in the top-heavy telecommunications industry by partnering with established companies such as T-Mobile. 



Decentralizing internet coverage has proved difficult for Helium. After seeing its <a href="https://cms.blockworks.co/hnt-remains-hot-dot-holders-pledge-over-1-billion-markets-wrap/" target="_blank" rel="noreferrer noopener">price surge upward</a> in 2021 following a partnership with DISH Network, Helium’s HNT token has steadily declined all year, <a href="https://coinmarketcap.com/currencies/helium/" target="_blank" rel="noreferrer noopener">hovering around $4</a> after falling from its November high of $52.71.



As HNT cratered, it became difficult to profitably mine the token, raising eyebrows when it came to Helium’s bottom line. Helium also faced backlash after <a href="https://mashable.com/article/helium-lime-web3-crypto" target="_blank" rel="noreferrer noopener">Mashable’s July report</a> that the wireless provider listed Lime and Salesforce as partners on its website despite having tenuous ties, at best, with both tech companies.&nbsp;



The network’s sudden vote to <a href="https://cms.blockworks.co/helium-to-vote-to-transition-to-solana/" target="_blank" rel="noreferrer noopener">migrate away from its own layer-1 to the Solana blockchain</a> did little to ease investor worries.&nbsp;



The remedy, in Helium’s eyes? Monetizing cellular data, which telecom giants have in spades, but have yet to try to derive revenue from via blockchain technology.&nbsp;



Helium initially used its hotspots for small packets of Internet of Things (IoT) coverage — but has been <a href="https://blog.helium.com/episode-two-the-path-to-5g-3f704a58661" target="_blank" rel="noreferrer noopener">working on a 5G network since 2021</a>, focusing on “small cell” hotspots that fill gaps in widespread coverage like T-Mobile’s.&nbsp;



“99% of data comes from streaming protocols like cellular, 5G LTE and Wi-Fi. And very, very, very little actually comes from the IoT,” Boris Renski, general manager of Helium Mobile, told Blockworks.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">Added Renski: “[Helium’s token] value is tied to the volume of data on the network, so by embracing Helium 5G which is a protocol that has an orders of magnitude higher volume of data on the network [than IoT], we expect that this will positively benefit the entire Helium ecosystem.”</blockquote>



<a href="https://twitter.com/amirhaleem/status/1571612095405502466?s=20&amp;t=g6FFZINWKiz-fukANts6LA" target="_blank" rel="noreferrer noopener">Amir Haleem’s teaser</a> for the T-Mobile partnership sent HNT upwards by more than 10%. And there’s an upshot for cell service providers, too: Helium says its network is not designed to compete with their entrenched coverage areas and pricing models.



“We&#8217;re not saying, ‘Hey, we&#8217;re launching Helium Mobile. Goodbye, Verizon. Goodbye, AT&amp;T,’” Renski said. “This hybrid network where you have a macro network and a people’s network working together can bring superior economics and a good experience to the end users.”



The major challenge with starting a telecom company — and a crypto-focused one, at that — is building a broad network while revenue is still lean. Helium’s network currently has <a href="https://explorer.helium.com/" target="_blank" rel="noreferrer noopener">fewer than 5,000</a> 5G hotspots. <a href="https://www.lightreading.com/5g/t-mobile-lays-out-%2460b-five-year-buildout-plan-for-5g/d/d-id/759586?" target="_blank" rel="noreferrer noopener">T-Mobile has said</a> it needs closer to 50,000 small cell transmitters to round out its 5G infrastructure.



A spokesperson for T-Mobile declined to comment.



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For $5 A Month, Crypto Now Has Your Cell Plan Covered

Jacquelyn Melinek

<div id="highlights-block_6112daecef995" class="highlights">
 <ul>
 <li>The hotspots mine HNT, the native network token, and provide an incentive for hosts, or consumers who operate the hotspots, to expand the network’s wireless coverage</li>
 <li>There are more than 500,000 additional hotspots currently back-ordered waiting to come online</li>
 </ul>
 
</div>



Andreessen Horowitz (<a href="https://cms.blockworks.co/a16z-leads-20m-series-a-for-digital-wallet-valora/">a16z</a>), Ribbit Capital, 10T Holdings, Alameda Research and Multicoin Capital have invested $111 million into peer-to-peer 5G wireless network provider Helium Network to help the company scale its decentralized 5G network, the company said in a statement Tuesday. 



Napster Founder Shawn Fanning and former video game entrepreneur Amir Haleem founded <a href="https://cms.blockworks.co/multicoin-capital-raises-100m-for-crypto-startups-tokens/" target="_blank" rel="noreferrer noopener">Helium</a> in 2013.



Today, it operates in more than 11,000 cities globally after launching less than 24 months ago, said Ali Yahya, general partner at <a href="https://cms.blockworks.co/andreessen-horowitz-launches-2-2b-crypto-fund/">a16z</a>.



<h3 class="wp-block-heading">How Helium works</h3>



Unlike traditional cellular networks like Verizon or AT&amp;T, the Helium network uses different standards like hotspots, which are about the size of a router, to create a decentralized network. The routers are wireless devices powered by the Helium blockchain and provide range and accessibility instead of having cell towers, which are commonly used by major cellular operators.



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="400" height="320" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/08/Helium-Hotspot-5.jpg" alt="A Helium hotspot router" class="wp-image-6386" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/08/Helium-Hotspot-5.jpg?w=400 400w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/Helium-Hotspot-5.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/Helium-Hotspot-5.jpg?w=321 321w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/Helium-Hotspot-5.jpg?w=326 326w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/Helium-Hotspot-5.jpg?w=274 274w, https://blockworks-co.imgix.net/wp-content/uploads/2021/08/Helium-Hotspot-5.jpg?w=80 80w" sizes="auto, (max-width: 400px) 100vw, 400px" /><figcaption>A Helium hotspot router; Source: Helium</figcaption></figure></div>



The hotspots mine HNT, the native network token, and provide an incentive for hosts, or consumers who operate the hotspots, to expand the network’s wireless coverage.



Hosts are rewarded with the HNT tokens whenever it provides Helium’s 5G network coverage and transfers device data. By incentivizing hosts, the company has seen a massive deployment of hotspots since inception.&nbsp;



In less than two years since the network’s launch, the Helium community has deployed more than 112,000 hotspots across 112 countries. Helium activates an additional 1,000 units every day, and has a backlog of 500,000 additional hotspots waiting to come online, according to the company.



<h3 class="wp-block-heading">Helium’s backers</h3>



Helium is also backed by its co-founder Fanning, GV (formerly Google Ventures), Khosla Ventures, Union Square Ventures, FirstMark, Marc Benioff and other venture capital firms.



The new funding will accelerate the rollout of its 5G network, support mobile network operators and mobile virtual network operators as it leverages expansion of the company’s coverage.&nbsp;



“The investment we are seeing is a testament to our belief that an incentive-based model is the future,” Haleem said in a statement. “Helium’s decentralized network empowers individuals to create a blanket of connectivity while also owning a piece of it rather than continuing with the status quo.”



“Helium shows that crypto incentives can be leveraged to deploy real-world infrastructure. Helium has a tremendous opportunity to bring 5G to the masses around the world and greatly enrich the quality of their lives,” said Sam Bankman-Fried, founder of Alameda Research and CEO of the crypto exchange FTX.



Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.

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