Telefónica and Nova Labs Launch Blockchain Mobile Infrastructure in Mexico

Telecommunications giant Telefónica has partnered with Nova Labs to utilize blockchain technology in order to reduce infrastructure costs and expand its mobile coverage in Mexico. By leveraging Helium Mobile Hotspots provided by Nova Labs, Telefónica plans to enhance its network coverage in Mexico City and Oaxaca. These hotspots serve as wireless network nodes, specifically designed to provide Internet of Things (IoT) devices with network coverage. Through the integration of Helium’s decentralized network, Telefónica can extend its coverage to remote areas by leveraging the hotspots to validate wireless activity and provide network coverage. This adoption of a decentralized network is expected to improve connectivity during peak usage times, as Telefónica aims to offload data traffic to the Helium ecosystem.

Users will benefit from this decentralized network by experiencing better connectivity when their devices are within range of a Helium hotspot, allowing them to switch from Telefónica’s traditional cellular network to the Helium network. This transition will help alleviate congestion issues related to connectivity. Telefónica has stated that user authentication will be performed through their SIM cards, with the company maintaining full control over client activities using its proprietary management system.

José Haro, Telefónica’s chief wholesale officer, expressed that this initiative aligns with the company’s strategy to expand coverage through cost-effective and cooperative-based technologies. He emphasized the importance of evaluating the performance, customer satisfaction, and associated costs of this solution in Mexico, stating that the company plans to incorporate it into their mobile network portfolio in other countries within the region if successful.

In Mexico, Telefónica operates under the brand Movistar and held a mobile market share of 18.3% in 2022, according to Statista. While the company is headquartered in Spain, it operates in numerous countries across Europe, Central America, and South America. Telefónica has been actively involved in the Web3 space, with initiatives such as enabling cryptocurrency payments via their online tech marketplace and developing blockchain solutions through its technology division, Telefónica Tech. With over 272 million mobile users reported in 2017, Telefónica continues to explore innovative technologies to enhance its telecommunications services.