Telefonica, Nova Labs to build blockchain-based mobile infrastructure in Mexico

Telecommunications giant Telefonica has chosen blockchain technology to reduce infrastructure costs and expand its mobile coverage in Mexico.

In collaboration with Nova Labs – the company behind the Helium network – Telefónica will use Helium mobile hotspots to expand coverage in Mexico City and Oaxaca, according to an announcement made on January 24.

Helium hotspots are nodes that provide wireless network coverage for Internet of Things (IoT) devices. By integrating Helium's decentralized network, Telefónica can expand its coverage, especially in remote areas, ensuring wireless activity and providing coverage to the network.

As Telefónica plans to offload data traffic to the Helium ecosystem, adopting a decentralized network for users can result in better connectivity during peak usage periods. This means that when the user's device is in a Helium hotspot, it switches from using Telefónica's traditional cellular network to the Helium network, helping to ease connection congestion.

New Partnership Alert @NovaLabs_ is working with Telefonica to launch Helium Mobile Hotspots in Mexico!

This allows Telefónica customers to connect to the Helium mobile network using their Movistar SIM cards, reducing infrastructure costs while expanding… pic.twitter.com/3u3CgcEdXO

— Helium Mobile (@helium_mobile) January 24, 2024

Users are authenticated by their SIM card, Telefonica said, adding that the company fully monitors customer activity through its proprietary management system.

According to José Haro, Telefónica's chief mass officer, the initiative is part of the company's efforts to expand coverage through low-cost and collaborative technologies. “This program in Mexico is critical to evaluate the performance and customer satisfaction of this solution and the associated costs,” he said. “Our expectation, if successful, is to include this in the portfolio of mobile networks in various countries of the region.”

Telefónica of Mexico operates under the Movistar brand. According to data from Statista, it will account for 18.3% of the country's mobile market share by 2022. The company is based in Spain but operates in 17 countries in Europe and Central and South America. In 2017, Telefonica said it had more than 272 million mobile users.

Telefonica has several initiatives linked to the Web3 space. In September 2022, the company enabled payments in cryptocurrencies such as Bitcoin (BTC), Ether (ETH) and USD Coin (USDC) through its online technology marketplace. Telefonica Tech, the company's technology division, has been involved in the development and implementation of blockchain solutions.

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