Helium has been using tokens as a reward for individuals deploying wireless nodes since the launch of its decentralized network in 2019. The network developer announced on Tuesday that US users can get unlimited talk, text and data for just $20 a month with Helium Mobile’s cell service in conjunction with T-Mobile.
Nova Labs is the company that created the Helium Network. Since partnering with T-Mobile back in September of 2022, they have been preparing for the national launch. Nova Labs must now figure out how to generate income from Helium Network – a notoriously non-profitable network.
Helium Network allows users to set up hotspot nodes in their home, office or other location in return for reward tokens that are based in Solana. Nova Labs currently offers a hybrid service that allows users to connect through its decentralized network and T-Mobile will take over when Helium hotspots are not able to provide coverage.
T-Mobile is charging for backup coverage so Nova Labs’ incentive to increase its network of hotspots is strong. Helium’s coverage is best in large cities and the company is still working to improve its node network.
Boris Renski is the general manager for wireless at Nova Labs. He says that Nova Labs doesn’t intend to cover all of America with cellular service.
“All we need is to cover 3% or even less of the geographic area where data is used the most and this will result in more than 50% of the T-Mobile traffic actually shifting to the Helium network,” Renski said.
Blockworks had previously reported Nova Labs’ use of similar logic for its cell network deployment in Miami. The company is losing money with every new customer. Plans are $5 per month. Helium pays out increased rewards to coverage providers who are located in Florida areas with high traffic.
Helium Mobile’s $20 monthly price is still less than the legacy carriers, even though it may be more expensive in Miami. T-Mobile’s partner Nova Labs offers unlimited plans starting at $60 a month.
Renski stated that this discounted price was sustainable due to the Helium Network’s bottom-up strategy, which reduces a lot of overhead associated with building a mobile network. Helium Hotspot Owners offer their real estate, and Nova Labs does not have to pay for radio installation or buy land to build cell towers.
Nova Labs also plans to sell outdoor mobile hotspots at $499 per unit. In October, the company launched indoor hotspots for $249.
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