Helium Deploy coughed up $9.5 million to Baicells for decentralized wireless radios in a move to expand its unique service offering to its international marketplace. The service: middle-manning individual small-cell deployments with crypto-based payouts for clients.
As part of the deal, Helium Deploy purchased Baicells Nova430H decentralized wireless (DeWi) radios to use as part of its Helium Deploy inventory. Clients can purchase these small cells and connect them with hosts across the U.S., who deploy the equipment operating on CBRS spectrum.
Helium is a decentralized wireless network that allows low-power smart devices (miners) to send and receive data to the internet. The miners earn HNT tokens for providing network coverage and relaying data to the internet using hardware called a Hotspot.
The Helium Mobile ConnectionNova Labs and T-Mobile recently inked a 5-year agreement to launch Helium Mobile – a decentralized service building off of its distributed IoT network – allowing subscribers to connect to Nova Labs' CBRS network and the expansive network of T-Mobile.
Nova Labs, a mobile virtual network operator (MVNO), will enable Helium Mobile users to access both T-Mobile and local Helium 5G networks created by users. But unlike traditional MVNOs, Helium’s network will add to T-Mobile’s existing network rather than functioning on top of it.
In early September, SDxCentral talked to Nova Lab’s GM of Wireless Boris Renski, who explained one of the biggest benefits to Helium is the way the system’s cost savings on the operator side translates to the cheaper pricing model – starting at $5 per month.
“The biggest cost of deploying small cell networks today … is the cost of site acquisition. Because getting the permits to put a small cell on the roof of some building or inside of some stadium, it takes a long time, and it takes a lot of paperwork,” he told SDxCentral then.
With traditional models contribute to the operator’s capital expenditure, Helium’s model puts “people in control in that they can purchase the small cell,” he continued. Every time someone adds a cell to their home, they are lending the space and “internet connection to the benefit of the global network.”
Helium Mobile's Global PlanHelium Deploy's partnership with Baicells comes as an effort to strengthen Helium Mobile’s decentralized network in the U.S. by globalizing the deployment consumer base. “So we're a partner of Helium [Mobile]. And we're acquiring the equipment that Helium [Mobile] needs to function,” Helium Deploy CEO Emile Chouha told SDxCentral.
“Helium [Mobile] is trying to be the backbone of telecom; they're trying to be the guys behind the telecom companies. Telecom companies are consumer facing, but the deployment part is expensive for them. So if they can outsource that to Helium, and Helium actually takes care of deploying well … telecom companies would be so much better off,” Chouha added.
“Where we play a role is we're actually the third layer to the chain. We're making sure that those deployments happen in the States."
The ‘Deployer Program’Helium Deploy hosts a “Deployer Program” to train parties on how to install its equipment, Helium Deploy Accountant Marcus Brunet explained to SDxCentral.
“We'll get the machines up and running, and then we'll buy it back from the hosts — and at that moment when we buy it back from the host, we give them the agreement, which is a profit-sharing agreement that we then flip and sell to clients who are international,” Brunet explained.
For example, if an international client buys a radio from Helium Deploy’s inventory, the two parties then continue to receive token-based compensation anytime a device connects to that network and additionally when data is transported over the small cell. While the U.S.-based hosts will receive 20% of the token earnings, the international client and owner of the cell will take 80% in perpetuity.
Currently the estimated cost for a small cell is $500. The company is currently looking to reduce that cost, and the estimated timeframes to recoup the money is not yet being released according to Chouha, despite the 5G Mobile Mining Rewards Estimator touted on the site.
“You'd own the cell technically and the [host] in the States is rendering your service. You own the cell. He's running a service, he's managing it for you,” Chouha explained.
Under the contract, both the international owner and U.S. host have to agree to never take the cell down.
“And so if one party agrees – let's say the host can no longer host the client anymore – it’s the host’ responsibility to find a new location for the client if the client still does wish to continue with the hosting program,” Brunet added.
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