Decentralized physical infrastructure networks (Depins) have the potential to connect businesses or projects in markets or locations with limited internet connectivity, all without requiring telecom companies to invest billions of dollars in infrastructure. Additionally, Depins helps existing infrastructure accommodate 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 of Uplink, decentralized physical infrastructure networks (depins) are poised to improve internet connectivity without requiring billions of dollars to build infrastructure. Lei says this is especially important now as the existing physical infrastructure that supports connectivity lags behind the increasing number of connected devices.
During an interview with Bitcoin.com News, Lei emphasized that before the rise of Depins, anyone looking for an internet connection in certain areas mainly relied on telecom companies. This dependency often meant that it was sometimes very expensive or cost-effective to serve specific markets or geographic locations. Lei said the introduction of Depins means projects or companies are entering new markets to “kick off the implementation phase.”
By encouraging communities to share their existing internet resources or deploy small infrastructure components, Depin companies like Uplink, which Lei says operates as a marketplace, can redirect connectivity to areas where it is needed most. This scheme benefits both the incentivized communities and the businesses or individuals who require connectivity, all without the need for huge capital expenditure.
Lei also claims that Depins allows major telecom companies to allocate capital expenditures more effectively, unlike the current scenario where expenditures do not guarantee returns.
“So right now, in traditional markets, it’s the telecom companies that are spending billions and deploying many times over. They don’t even know when they’ll get anything back because there are so many new connected devices they need to keep up with demand. But the economy is still a little weird, and we are shifting this,” Lei explained.
Entry barriers hinder Depins’ progress
Illustrating Depins’ potential, 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 has encouraged a community in Antigua, Guatemala to offer internet access to a specific location. As a result of the successful demonstration, the Fortune 500 company received cost-effective connectivity, while community members received rewards for deploying their devices.
Meanwhile, Lei admits that despite promising to revolutionize the way people access the internet, Depins still faces challenges in service quality and reliability. He also acknowledges that some Depin companies have hardware requirements for admission, creating a barrier to entry. These limitations hinder Depins’ overall growth, Lei admitted.
However, Lei claimed that Uplink is actively addressing this issue by working with the Wireless Broadband Alliance, which already has more than three million devices. These strategic partnerships are intended to improve connectivity infrastructure and advance the Depin industry, Lei argued.
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