Decentralized Physical Infrastructure Networks (Depins) have the potential to connect companies or projects in markets or locations with limited internet connectivity, all without requiring telecom companies to invest billions of dollars in infrastructure. Additionally, Depins assist existing infrastructure in accommodating the ever-growing number of devices that require internet connectivity.
Depins Can Help Telecom Companies Save Billions
According to Carlos Lei Santos, co-founder and CEO at Uplink, decentralized physical infrastructure networks (depins) are poised to enhance internet connectivity without requiring billions of dollars to build infrastructure. Lei argues that this is particularly important now, as the existing physical infrastructure supporting connectivity lags behind the increasing number of connected devices.
During an interview with Bitcoin.com News, Lei highlighted that before the emergence of Depins, anyone seeking an internet connection in certain areas mainly relied on telecom companies. This reliance often meant it was sometimes very expensive or cost-effective to serve specific markets or geographical locations. Lei said the introduction of Depins means projects or companies entering new markets to “bootstrap the deployment stage.”
By incentivizing communities to share their existing internet resources or deploy small infrastructure components, Depin companies like Uplink, which Lei said operates as a marketplace, can redirect connectivity to areas where it is most needed. This arrangement benefits both incentivized communities and the companies or individuals requiring connectivity, all without the need for massive capital expenditure.
Lei also asserts that Depins enable large telecom companies to allocate capital expenditure more effectively, unlike the current scenario where spending does not guarantee a return.
“So right now, in traditional markets, it’s the telecom spending billions deploying many times. They don’t even know when they’re going to get a return, because there are so many new connected devices, they need to keep up with the demand. But the economics are still a little bit weird, and we’re shifting this,” Lei explained.
Barriers to Entry Hampering Depins’ Progress
To illustrate the potential of Depins, Uplink’s CEO revealed to Bitcoin.com News that his company had demonstrated this paradigm shift to a Fortune 500 company. According to Lei, Uplink incentivized a community in Antigua, Guatemala to provide internet access to a specific location. As a result of the successful demonstration, the Fortune 500 company gained cost-effective connectivity, while the community members received rewards for deploying their devices.
Meanwhile, Lei concedes that despite promising to revolutionize how people access the internet, Depins still face challenges related to service quality and reliability. He also acknowledges that some Depin companies impose hardware requirements for admission, creating a barrier to entry. These limitations hinder the overall growth of Depins, Lei admitted.
However, Lei claimed that Uplink is actively addressing this issue by collaborating with Wireless Broadband Alliance which already boasts over three million deployed devices. These strategic partnerships aim to improve connectivity infrastructure and drive the Depin industry forward, Lei argued.
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