Helium Network, Source: helium.com
Helium operates several core businesses. It provides the Helium Network, a decentralized wireless network powered by user-hosted hotspots, and operates a cellular mobile service, Helium Mobile, which runs through its own network and partnerships with other carriers like T-Mobile in the U.S. Additionally, Helium sells its own hotspot hardware, which serves as the basic infrastructure for the Helium Network.
Helium is one of the most popular and pioneering DePIN (Decentralized Physical Infrastructure Network) projects, aiming to deliver low-cost network connections and decentralized networks. However, I have long been curious about whether it truly has a robust business model for itself and for users who pay for hotspot hardware and tokens.
Helium Mobile has been successful since its launch, reaching 116,000 subscribers in the U.S. by Q3 2024. This indicates a strong market demand for affordable alternative mobile services. Helium Mobile attempts to offload data for major mobile carriers through partnerships, reducing infrastructure costs for carriers and becoming a revenue source for Helium.
The Helium Network is supported by 49,000 hotspots globally. Hotspot operators earn cryptocurrency incentives in the form of $HNT and $MOBILE tokens.
From a hotspot user's perspective, purchasing a hotspot costs $249 (indoor) to $499 (outdoor), but these devices do not guarantee stable revenue or return on investment (ROI). Rewards are restricted to geographical zones called "Hexes," where one indoor hotspot and up to several outdoor hotspots can earn rewards. Consequently, hotspot buyers may receive minimal or no rewards, making ROI take several years or longer. Moreover, token prices are highly volatile and unpredictable.
I believe Helium Mobile may have opportunities to generate more profit and become part of the next wave of business innovation. However, the Helium Network still seems to lack a solid business model and reliable reward system. With unstable and limited rewards, it may be difficult to attract participants and maintain network stability. The hotspot hardware needs significant improvements to enhance efficiency and offer more profitable opportunities for network participants.
I think Helium Mobile may have chances to have more profit and become a member of next business main stream. But still Helium Network doesn't seem to have a rigid business model and a reasonable rewards model. With that unstable and limited rewards, it may be difficult to attract and maintain whole network stable.
And hotspot hardware needs tobe improved more and it should be considered to offer network participants a bit more profitable rewards.
This post was also published on Medium on April 1, 2025, by the same author.
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