Helium (HNT 7.50%), a cryptocurrency that aims to leverage blockchain technology to expand wireless internet coverage, is continuing to prove that it has what it takes to bring its vision of becoming "the people's network" to fruition.
The Helium network is made of hotspots set up by users who earn rewards in its native cryptocurrency for contributing to the network and running a node. To participate, you have to set up a hotspot connected to Wi-Fi, which other peoples' devices can access, expanding internet coverage and capacity.
Originally, the intent was for Helium's network to focus on providing connectivity for Internet of Things (IoT) devices like sensors and trackers, but that has shifted recently. The blockchain's popularity has been growing among not only average Joes, but also large companies. Among the businesses that have recently established partnerships with Helium are Volvo, Cisco, Schneider Electric, and Dish Network. Yet arguably the most important partnership in Helium's history was revealed within the last week.
Teaming up with the nation's No. 3 wireless provider
On Sept. 20, Helium announced that it has partnered with T-Mobile (TMUS -0.19%) to create a new 5G wireless service called Helium Mobile. It will work in a similar fashion to Helium's existing business model, with users setting up nodes to expand the network's coverage. By partnering with Helium, T-Mobile will be able to expand its 5G coverage in a cost-effective way since it won't have to invest as much in capital expenditures to build out infrastructure. Instead, user-run hotspots will provide the 5G access.
The agreement between the two companies is set to run for five years, and the network should launch in the first quarter of 2023. Once it's operational, T-Mobile customers will be able to take advantage of two new benefits. First, their access to 5G coverage will increase substantially. The plan is for phones on the T-Mobile network to alternate between 5G provided by T-Mobile's existing infrastructure or Helium's user-run nodes, depending on which signal is the strongest. In addition, customers will be able to earn Helium's new crypto token, Helium MOBILE, for agreeing to share data. To make things even sweeter, cellphone plans are set to start at only around $5 per month.
An investor's dream
As with any project of this scale, there will likely be some challenges when it comes to implementation, but an agreement of this magnitude is exactly what investors should be looking for when screening candidates for their portfolios. Among the thousands of cryptocurrencies in circulation today, long-term value, growth potential, and necessary utility are characteristics that set Helium apart from the crowd.
And although its token price has taken a beating like most other cryptocurrencies, Helium's business growth in 2022 has been nothing short of exceptional. In February, the network hit a milestone when it reached half a million hotspots. Since then, growth has continued to around 950,000 hotspots. It should easily reach the 1 million mark by the end of the year.
Helium is in a position to capitalize on the ever-expanding presence of the internet in our daily lives. Its existing network, which supports the Internet of Things so that devices such as sensors and trackers can deliver data to their owners, is spectacular in itself. But when considering that Helium is taking its vision a step further and adding 5G cellphone coverage to its network, the upside potential seems even more impressive. Investors should expect Helium to continue to grab market share and remain at the forefront of this growing trend.
