114: Disrupting Telco Infrastructure with Amir Haleem, CEO of Helium and Horace Dediu
Jun 6, 2021
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Topics discussed in the podcast include Helium's innovative telco model, the concept of 'useful crypto,' disruptive infrastructure financing, future challenges for Helium, and the upcoming Micromobility America conference in San Francisco with industry leaders.
Helium innovatively addresses IoT sensor connectivity challenges with their decentralized telco infrastructure model.
Utilizing low-power wide area networking technologies like LoRa, Helium expands coverage and efficiency.
Helium disrupts traditional telco models by empowering decentralized network participation and reducing upfront costs.
Deep dives
The Genesis of Helium: Building a Wireless Network for Sensors
Helium's journey began with the vision of creating a wireless network designed specifically for IoT sensors. The founders recognized the need for a new type of network due to the lack of existing infrastructure suitable for IoT devices. Inspired by the concept of Filecoin's incentivized network, they embarked on solving the challenge of deploying a wireless network optimized for sensors, leading to the launch of Helium in 2019. By combining user-friendly IoT gateways, cryptocurrency mining devices, and a unique incentive system, Helium aimed to establish a low-cost, ubiquitous wireless network for sensor applications.
Expanding Network Capabilities with Low-Power Wide Area Technology
Helium's strategic adoption of low-power wide area networking technologies, like LoRa, revolutionized the coverage and efficiency of the network. By leveraging technologies such as LoRa, Helium achieved extended coverage ranges and cost-effective data transmission for IoT devices. This approach enabled Helium to build vast coverage areas with minimal hotspot deployment, catering to the specific demands of IoT applications requiring low-power, low-data rate transmissions. The utilization of innovative technologies like LoRa paved the way for Helium's success in creating a scalable and efficient wireless network.
Beyond Traditional Networking: Helium's Revolutionary Decentralized Model
Helium challenges the traditional networking paradox by introducing a decentralized model that empowers individuals to contribute to the network's growth. By leveraging blockchain and cryptocurrency technology, Helium transforms network economics by enabling users to participate in network operation through simple devices and existing resources. This decentralized approach effectively distributes the economic benefits of operating a wireless network, breaking away from centralized control and transforming the way networks are built and maintained. Helium's innovative model introduces a new era of network deployment where community-driven participation drives network expansion and sustainability.
Decentralized IoT Network Economics
Building a traditional IoT network with high upfront costs of $600 to $700 million and expecting minimal returns from sensors priced at 10 cents a year is deemed unsustainable. In contrast, a decentralized model like Helium's paradigm shift involves lower upfront costs of around $100 per hotspot, allowing widespread participation. This economic shift breaks the investment paradox, enabling broader network growth and lower operating costs.
Competition and Regulatory Challenges
Competing against centralized IoT network providers like telecom giants presents challenges due to the inherent high pricing and economic inefficiencies of traditional models. Technologies like CBRS and NB IoT face economic viability issues due to costly infrastructure and service charges. The podcast discusses the potential for decentralized networks like Helium to disrupt traditional models through individual cost-efficiency, highlighting the advantages of widespread adoption and competition in less regulated markets.
This week, Oliver and Horace interview Amir Haleem, CEO of Helium, about the rise of distributed telco infrastructure. This was originally recorded for the Critical Path, but given that Amir has been a guest on the podcast in the past and there’s a direct link between what they’re building and low cost connectivity for micromobility, we wanted to share here as well.
If you’re interested in Helium and wondering how it sits within the telecommunication industry business model, this is a great episode.
Specifically they dig into:
- The Helium model for telco and what problem they were trying to solve.
- Why Horace calls this the first 'useful crypto' he's found.
- Horace talks about the traps of infrastructure financing, and ponders whether the Helium model invalidate these challenges.
- Horace and Amir break down whether/how the model is disruptive to existing infrastructure.
- They talk about the future challenges they can foresee, and how Helium will potentially react.
Also, the next Micromobility America conference is now scheduled for the 23rd of September. It’ll be in Pier 70 in San Francisco and have more than 50 top speakers from the industry, more than 1000 global participants and 500ish startups and brands represented. If you love this space and want to find your tribe here, head to micromobility.io to find out more details.
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