Driven by the global wave of informatization, the traditional business model of the telecom industry is facing unprecedented challenges. On one hand, the pressure from the upfront investment required by 5G continues to grow, while on the other hand, the delayed transformation of its revenue model has led to little progress in value-added services. Traditional user communication service fee revenue continues to decline under the pressure of competition. As shown in the chart below, among the top listed companies in the U.S., while the telecom service industry’s revenue is 50% higher than that of internet giants, its profitability is only 30% of theirs. The telecom industry’s profit margin is just 20% of that of internet giants, with net income maintaining only around 5%. Compared to internet companies, telecom operators’ market value is only 30% of theirs, highlighting a significant lack of investor confidence in the asset-heavy model and low growth potential.

The Limitations of the Traditional Telecom Operator Model

The traditional telecom company model relies on users signing long-term contracts and paying fixed fees to access the network. This so-called “pay-to-use” model is highly inefficient in today’s digital age. Users typically have to choose a single service provider, such as AT&T, Verizon, or T-Mobile, and are unable to freely switch or enjoy multiple services simultaneously. This limitation not only divides the user base but also neglects the user experience, making it difficult to attract new customers.

In stark contrast, internet services like search, social media, and e-commerce are almost all freely available to users. It is hard to imagine Google and Bing each serving half of the fixed customer base in the U.S., or Alibaba, Baidu, and Tencent each serving only a third of the fixed customer base in China, as such models would be highly limited and small-scale. Operators are increasingly relegated to the role of “channels,” where, despite the entire internet traffic flowing through their infrastructure, they are excluded from the most valuable services.

To break free from the “channel” dilemma, telecom operators must shift from paid access to free access in order to cover all network consumers, enhance their network effects, and directly provide high-value services to users instead of charging limited fixed “channel” fees. However, this transition poses a huge challenge for large and bureaucratic telecom companies.

The Innovative Model and Implementation of the Decentralized Telecom Operator Roam

In this transformation, we have noticed that Roam has rapidly risen as an industry challenger by leveraging its innovative free usage model, combining Web3 technology with telecom services. Over the past year, Roam has achieved remarkable growth in both user numbers and nodes without significant marketing investment. Its user base has exceeded one million, attracting the attention and support of numerous traditional telecom operators, and becoming a leading project in the decentralized physical infrastructure (DePIN) sector. As shown in the chart below, Roam ranks second on the DEPIN data analysis website depinscan.io.

A Deep Dive into How Roam Uses Communication Technology and a Decentralized Model to Create a New Telecom Operator Model

Roam Is The Only One Through Upgrading OpenRoaming Built Decentralized Communication Network

WiFi and mobile networks are the two main pillars of wireless broadband access globally. Almost all mobile interactions rely on these two. Since WiFi is typically free to use, it accounts for over 70% of data traffic (as shown in the chart below). In the 5G era, the trend of integrating WiFi and mobile networks is becoming increasingly evident. Due to the insufficient deployment density of 5G networks, high energy consumption of base stations, and high operational costs, operators tend to use WiFi networks to offload traffic and reduce operational costs. However, this also means that outdated WiFi networks are no longer adequate, and a comprehensive upgrade of WiFi is imperative. This includes upgrading from WiFi 4 and WiFi 5 to new communication protocols like WiFi 6 and WiFi 7 (it is worth mentioning that Roam’s self-developed WiFi router is among the first to support the WiFi 6 protocol for home routers), as well as transitioning from traditional username/password logins and Captive Portal web logins to automatic logins based on Passpoint and OpenRoaming security certificate backends. According to the market analysis report from Market and Markets, the relevant market is expected to grow fourfold in the next five years.

Roam collaborates with the WiFi Alliance and the Global Wireless Broadband Alliance (WBA) to support the access transformation of OpenRoaming. The OpenRoaming network represents a significant leap forward compared to traditional public WiFi. With regular public WiFi, users often need to log in through a webpage, a process that is not automatic and typically lacks encryption. In contrast, OpenRoaming network WiFi, like mobile cellular networks, automatically logs users in and ensures end-to-end secure encryption of communications. This strategic partnership enables Roam to offer unified network access services worldwide, allowing users to seamlessly roam between cellular and WiFi networks without needing to log in repeatedly to different networks. Through this collaboration, Roam has not only expanded its network coverage (with over 4 million OpenRoaming WiFi hotspots globally) but also significantly enhanced the user experience, meeting users’ high demands for convenience and continuity.

New Telecom Operator Business Model: Driving Decentralized Network Construction Through Free User Access

Roam’s ability to attract a large number of users lies in its breaking of traditional telecom entry barriers by offering free wireless network access. Leveraging the global trend of WiFi network upgrades and supported by industry standard organizations, Roam has attracted users to participate in the OpenRoaming network upgrade. Participants not only gain access to more secure and convenient WiFi but also receive free global eSIM data as incentives. This model ensures that users can access the network for free, whether through WiFi or mobile eSIM. Additionally, users can earn Roam points by participating in network co-building and other activities, which can be redeemed for goods and services. Furthermore, Roam uses hardware network nodes, such as the Rainier MAX60 router, to enable shared CDN bandwidth, providing users with additional incentives. By participating in the construction and verification of the OpenRoaming network, users can earn global data rewards that are usable in over 200 countries. This new model not only significantly reduces the cost of network usage but also allows users to deeply engage in the revenue sharing of network operations, creating a commercial feedback loop that incentivizes further investment in network development.

This incentive mechanism not only boosts user participation but also helps Roam rapidly build an active user community. Currently, over 600,000 user interactions take place daily in network quality validation and feedback. This high-frequency use scenario is difficult to achieve in traditional telecom applications. Roam has found a development direction that is no longer just about being a “channel” but is instead a network service co-building community where both users and related businesses benefit. At the same time, Roam values communication between the community and the operations team, with users contributing numerous suggestions for network improvements. In a recent AMA session on app design, for example, community members submitted over 300 app improvement suggestions within just one hour. This community-driven model enables Roam to quickly respond to market demands and user expectations, maintaining a competitive edge in the industry. Active user participation not only drives network optimization but also strengthens user loyalty and brand stickiness.

Technical Foundation: Web3 and blockchain

In addition to utilizing telecom technologies like OpenRoaming, Roam’s telecom network also relies on the support of Web3 technologies. The decentralized nature of blockchain ensures the security of data transmission and storage, safeguarding user privacy and security. MetaBlox Labs Inc., the company behind Roam, has become one of the top ten root identity issuers for OpenRoaming globally (the only Web3 company), on par with Cisco. Unlike other issuers, Roam has innovatively developed an OpenRoaming upgrade solution based on the W3C decentralized digital identity standard to address the difficulties small and medium-sized businesses face in implementing OpenRoaming, effectively overcoming technical and cost barriers.

Additionally, Roam allows non-WiFi operators (such as credit card issuers, game publishers, schools, etc.) to easily integrate the decentralized digital identity-based OpenRoaming framework, enabling their users to enjoy secure, free WiFi roaming at no cost. This approach not only expands the application scenarios of OpenRoaming but also enhances Roam’s influence, allowing more users to experience convenient network access services.

Roam Is Poised To Become The First Web3 Telecom Network To Be Widely Adopted.

In less than a year, Roam has rapidly grown to over one million users, covering nearly 200 countries and regions worldwide, despite limited social awareness and acceptance in the Web3 industry. With more than 820,000 proprietary nodes, Roam’s network nodes have even appeared in remote areas such as the Siberian Plateau, northern Canada, and Alaska.

Users of Roam will quickly notice that by participating in the network’s check-in verification, they can earn 1-2GB of free global eSIM data every month. If the data is insufficient, additional data can be purchased at highly competitive prices. In the traditional world, leftover eSIM data often becomes invalid when users switch countries or regions, but Roam’s data automatically converts to local data. This can significantly reduce monthly communication costs for frequent international travelers. As a result, Roam is poised to become the preferred data provider for travelers.

Further comparison shows that Roam also has the potential to become a major data provider for users’ local living. According to statistics from Statista (left chart) and OECD (right chart), the average American spends about $30 per month for approximately 10GB of data. By participating in OpenRoaming construction, Roam users in non-roaming scenarios could reduce their wireless access costs by 50% or more each month. In addition to cost savings, Roam’s community-driven model greatly enhances user stickiness and creates new operational revenue opportunities.

This practical application is set to become a core product in the transformation of people’s lives through blockchain and Web3 technologies.

With the continuous development of communication and artificial intelligence technologies, WiFi OpenRoaming technology based on security certificates is expected to expand into more application scenarios. Especially in the smart home field, it can optimize device security and seamless access, supporting the integration of AI agents in smart homes. This not only enhances the user experience but also provides strong technological support for smart living. Roam has demonstrated significant potential in this context.

Looking ahead to the next five years, Roam aims to deepen its presence in more industries and application scenarios, catering to both individual users and enterprise needs. It plans to position itself as a bridge connecting everything, achieving seamless integration of users, devices, and AI, and driving true smart connectivity.

Through various efforts, Roam is redefining a new business model for the telecom industry, offering users a richer network experience. It is not only a typical example of how Web3 is reshaping the industry landscape but also an important guide for the future development of the telecom industry.

Disclaimer

This article is solely a case study sharing the analysis of an enterprise we have invested in, aiming to provide an in-depth study and understanding of the company’s business model, technological foundation, and other aspects. While we believe the information provided is reliable, we make no representations as to its enduring accuracy or appropriateness for specific circumstances. Therefore, you should not base your investment decisions solely on the content of this article.

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