Blockchain’s decentralized structure is spreading into enterprise use cases. While telecom operators have adopted it for dispute management, newly public XNET is looking to establish itself as a multi-service blockchain mobile network operator (MNO) – not only mimicking its structure in cell deployment, but utilizing the technology for crypto incentives and network monitoring.

XNET cell owner-operators earn XNET tokens for providing wireless coverage and connectivity to user devices. Users can be XNET subscribers or subscribers from other carriers who roam onto the XNET Small Cell, according to the company. XNET tokens are valued “as a utility token, allowing individuals and organizations to pay for network services,” including a one-time launch reward bonus for early buyers.

According to XNET Co-Founder and COO Tom Beirith, the company has a two-pronged approach. One looks to aid telecom service providers in keeping up with network demands through a decentralized radio access network (RAN), while an “XNET Foundation” uses allocated crypto assets in not-for-profit work, connecting rural communities, school districts, and Native American tribes.

Beirith told SDxCentral the company “came out of stealth” in early October, announcing a partnership with BLiNQ Networks and Baicells to help build out its decentralized wireless (DeWi) network, but it presents a very different value proposition than other decentralized networks like Helium and Pollen.

XNET’s DeWi model looks to bring full-service carrier features such as SMS, voice, e-911, as opposed to data connectivity, through both licensed and Citizens Broadband Radio Service (CBRS) spectrums. “You won’t be able to do that on Helium; you won’t be able to do that on Pollen,” noted Beirith.

Acting as a neutral-host operator, XNET also provides roaming capabilities for customers with any CBRS-compatible device, including from other networks.

Individual cells, called "nodes," generally cost around $2,000 "and include an XNET gateway called XNode that runs our mobile core and the blockchain module." For professional deployers like internet and cellular service providers, XNET also offers larger rooftop units requiring professional installation. ROI varies between four to six months based on estimates, Beirith explained.

While the hotspot model seen in companies like Helium Deploy helps in specific areas with network capacity issues, Beirith says XNET is not “after this spray and pray” method which takes millions of hotspots to actually build out strong ubiquitous coverage.

“We are deploying our network in a very focused and strategic manner, and by that I mean we are building it in clusters,” he explained. “We have real-time data from open sources that tell us where the coverage problems are.”

XNET’s commercial work focuses on coverage gaps and dead zones, where they will deploy larger Baicells equipment to fill “hexes” or “tiles” of missing coverage on a map, often within particular areas within cities.

While the new and nascent company first anticipated the customer base would be around 80% consumers and 20% enterprise, its first few months has found the opposite –  with enterprises buying multiple larger rooftop cells to deploy in dead zones. Because XNET supports all services of a mobile provider, Beirith explained providers happily opt for XNET's deployment and maintenance services rather than building another tower.

He likens other capacity-focused DeWi network buildouts to a nice-to-have “vitamin” as opposed to the “painkiller” that XNET is providing.

One million customers are changing carriers every month in the U.S., according to Beirith. With such a high customer acquisition cost, when operators lose a subscriber, “they’re losing thousands of dollars ... that's a huge headache, and so if you give them a painkiller for that headache, that's a perfect world for them,” he explained.

XNET wants to apply the same targeted cluster-based strategy to school districts, Native American tribes, and rural communities that don’t have sufficient coverage. In the case of Native reservations, the tribes will also receive all crypto assets generated by the donated cells.

Baicells VP Tony Eigen explained that the two companies want to focus on the Native tribes together as the segment is well suited to their offerings.

“The fact that a lot of them have been granted these 2.5 Gig licenses for this band 41, we make that type of product – it's available now. You don't have to wait. And then I think the opportunity, you know, using CBRS as well and the opportunity to kind of earn [tokens], there's a lot of benefits for this model for that kind of audience,” Eigen explained.

Beirith added they are looking at Native tribes in the most immediate need for network coverage and want to move quickly. “Many of these sort of under-connected groups actually have funding now, but the problem is the operators – they don't want to do any of that stuff. Why put a million dollar tower somewhere where you know, [there are] 50 people?” he said.

XNET hopes to catalyze the movement within those demographics in coming months.