The benefits of open networks

Mobile networks are great. They really are. Thanks to them we have access to communications on the go and it’s so much more easy to connect devices and users without the need to run cables everywhere. The problem is that the vast majority of these networks are “closed” i.e. they are owned by a specific company and you can only join them if they allow you to do so.

Of course, the owners of most such networks are more than happy to allow you to join them, if you are willing to agree to their terms, conditions and fees. Also, at the end of the day, you have no control over the development of the network, the coverage availability or anything else really. And if or when the network owner decides to shut it down, the users are simply out of a service.

You hold no power here

This is what is happening in the United States now. Major operators are planning to shut down their 3G networks, potentially leaving millions of devices without a connection. And it’s mainly Internet of Things (IoT) devices that are going to be affected the most.

Also, then there’s the question of security. The network operator takes care of every part of developing, maintaining and securing the infrastructure. Whatever it decides goes. And users also don’t know what measures the network owner is taking to ensure security.

Operators also are notorious for taking advantage of their position. They often force their decisions upon users with a lot of “my way or the highway” bravado. Of course, most of that is balanced out with a lot of loyalty programs which do give long-term users better offers and terms than new clients. Despite that, user loyalty is generally low and clients would jump ship in an instant if they get a better deal at a competitor.

What is an open network?

As we did a recap of the realities of (most) operator-owned networks, let’s check out their main alternative – the open network. What is it? In essence, it is a network with no single owner. There’s no one entity that has incentive to develop and maintain the network. Instead, this is a task handled by everyone who use the network. Why would they do that? Because of the value they get from it.

The best example of an open network is the Internet. The World Wide Web as we know it was made with the idea to make information and communication readily available to everyone. All of the internet, including its underlying protocols like TCP/IP are open.

In an open network, participants not only get value to it, but can also bring it. Like in the Internet, users bring value by adding information, creating services, apps, etc. Also, internet companies take care of the infrastructure and invest in its development and maintenance as they get revenue from the access services they offer.

So, can we have an open wireless network?

Yes, there are already such available. For example, the Helium Network. It’s also known as The People’s Network exactly because there’s no single entity that owns it. Instead anyone and everyone can join it either as users or by adding hotspot miners to expand the coverage and capacity or both.

Helium is a good example of the benefits of an open network. It basically has them all.

You can use it whenever you want and you aren’t locked in with subscriptions. Instead, you pay as you use it. So, the more you use it, the more you pay. But, it’s still very cheap. Estimates show that on average if one device transmits 1 packet of data every minute non-stop for a whole year, your total bill will be $5.26.

This is possible because Helium is based on the LoRaWAN standard and it’s designed for low-powered IoT devices. They don’t use much energy, but will get the benefits of a high-speed, low-latency wireless internet connection which they can use as much as needed. There are no additional fees, no data caps, no binding contracts.

You also get the enhanced network security. This network uses the Helium Blockchain to ensure additional security of the data. It’s also fully decentralized, meaning it will keep going no matter what.

It’s also possible to help the network grow by adding Helium hotspots and/or becoming a Validator. By adding Helium hotspots you increase the coverage and network capacity. There are already more than 600 000 deployed hotspots all over the world and their number is rising fast. Most of them are in cities, but the coverage in rural areas is also growing, opening up even more opportunities.

And Validators perform consensus group work, including to verify transactions and add new blocks to the blockchain. Why add a hotspot or become a validator? Because you will earn the HNT cryptocurrency as a reward. The better your take care of your equipment, thus the better service you will offer and the bigger rewards you will earn.

Thus everyone involved in Helium are getting value from it. Users get good, cheap and reliable service. On the network side, hotspots owners and validators can earn actual revenue. Everyone have the right incentives to continue to use and develop the network to their mutual benefit. All done on voluntary terms without binding agreements.

An open network certainly has a lot of potential in today’s world where open technologies and standards are becoming more and more prevalent. It’s a great match and one that can usher the new Industry 4.0 age where open tech and IoT will have a major role.