Below is a guest post Sofia Boblik, CEO and co-founder in TechWaves PR.
Latin America is a tough market for carriers and their customers in the region. From debt-based operators, lower revenues, and affordable tariffs, poor service quality, and gaps in connectivity and demand, the LATAM Telecom industry is significantly more likely to become financially sustainable for participants. You need to undergo change.
Decentralized Physical Infrastructure Networks (Depins) address these challenges and use distributed and resilient infrastructures that promote scalable, reliable, affordable telecom solutions to ensure a highly efficient sector. It can promote the evolution required for.
The struggles of telecommunications market
Despite the spread of the Internet rise From 46% in 2013 to 81% in Latin America and the Caribbean by 2023, the region’s telecom industry faces unique problems that are more sustainable and less competitive than Europe, North America, or Asia. Masu.
First, the coverage gap Impact Seven percent of the region’s population is concentrated in remote areas with complex topography, such as the mountainous regions of Colombia, and is not financially financially as mobile network operators expand their services. However, there are also usage conditions It affects 28% of Latinos live in areas with active mobile broadband coverage, but still do not access carrier solutions.
In Argentina, coverage gaps affect 4% and usage gaps are 23%. Meanwhile, only 66% of Brazil’s population has access to mobile broadband services, with 12% and 23% struggling with connectivity and usage gaps, respectively.
One of the main reasons for this usage gap is the lack of affordability in telecom services, primarily caused by infrastructure challenges, CAPEX-heavy expansions, debt-based regional operators and regulatory challenges. In countries like Argentina, taxes significantly increase broadband costs, with up to 44.5% of the price being attributed to taxes. There is a fixed internet price I stopped by Buenos Aires since 2018, they’re still Fill in 4% Of the average household income, it is twice the UN’s 2% affordable price threshold.
The transformational effect of Depin on Latam Telecom
Depin leverages blockchain to decentralize ownership and control over physical telecom infrastructure. Currently, the total addressable market for the sector is estimated to be $2.2 trillion. By 2028 it will reach $3.5 trillion.
Depin technology allows individuals and small businesses to establish a distributed communications infrastructure that installs hotspots, antennas, or routers to provide coverage to Internet users. For valuable contributions to the ecosystem, operators are rewarded with payments of native tokens backed by network royalties.
For communications providers benefiting from Latin America, the main advantage of Depin is that additional Opex or Capex is not costly to offload traffic from the network. With Depin infrastructure crowdsourced, there is no need to spend money on hardware deployment or maintenance.
Instead of competition, collaboration makes the most sense between the DePIN network and the telecom business in the LATAM market. Depins still has room for growth, allowing traditional providers to leverage the established communications infrastructure to provide user coverage at a fraction of the cost of legacy services. This will allow communications to provide additional revenue streams. This helps offset operating expenses.
With crowdsourcing hardware and proper token incentives, Depin networks can fill coverage gaps between remote and area with complex Latin America terrain. Development of this infrastructure is dramatically cheaper than expansions with many telecom sites, allowing Depins to provide telecom services in affordable and unserved areas. Therefore, they could also address the use gap in the LATAM market and bring 28% of the population online.
Through collaboration, Depins and Telcos can create interconnected networks of telecom solutions that provide customers with affordable prices, more reliable services, and enhanced coverage. In fact, blending established infrastructure with established infrastructure in decentralized ecosystems with the ability to expand rapidly in remote areas will significantly improve service quality and reduce the frequency of decommissioning. You can do it.
Token incentives accelerate the development of Depin infrastructure, but the decentralized, decentralized and immutable nature of blockchains makes the network more resilient. Unlike traditional carriers, Depins lacks a single point of failure that could potentially exploit a data breaches. This could make the Latin American telecom market significantly more attractive to clients.
A real-world example that implements the depin principle is OpenRoaming, a global federation that enables seamless Wi-Fi connectivity in the world with distributed identity management and secure, automatic connectivity.ns. The OpenRoaming ecosystem is upgraded by Internet Depin provider Uplink by bridging its members to a distributed platform to resolve connectivity issues. This is a vast and scalable approach that encourages the expansion of coverage to underserved regions. As the company states on its official website, Uplink’s approach also helps Telcos reduce CAPEX and OPEX by offloading traffic to distributed infrastructure.
Depin’s adoption challenges and future in Latin America
Each LATAM Nation’s regulatory policy is varied, complicating both the operation of both telecommunications and locations. Industry players must work with governments to create a robust framework that drives growth and innovation.
Another barrier to Depins is to onboard Latin American telecom operations that are actually operating within the Web2 framework in the Web3 market. This is a new sector backed by transformative technology, and legacy providers need a simple process to join this new market.
Considering the economic struggles of Latin America, telecom operators and national economies, Depin has more important potential in regions than in more developed regions. With the right incentive and regulatory framework, Depin can turn the telecom sector in Latin America into a competitive, innovative and accessible market.
