Driven by the global wave of informationization, the traditional business model of the telecom industry is facing unprecedented challenges. On one hand, the pressure of upfront investment brought by 5G continues to increase, while on the other hand, the transformation of its revenue model has yet to be realized, leading to a lack of progress in value-added services. The revenue from traditional user communication service fees continues to decline under the squeeze of competition. As shown in the data below, among the leading companies listed in the United States, the revenue of the telecom service industry is 50% higher than that of internet giants, but its profitability is only 30% of the latter. The profit margin of the telecom industry is only 20% of that of internet giants, and net income is maintained at around 5%. Compared to internet companies, the market value of telecom operators is only 30% of theirs, indicating a severe lack of investor confidence in the heavy asset investment model and low growth potential.

Limitations of the Traditional Telecom Operator Model

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

In stark contrast, internet services such as search, social media, and e-commerce are almost all freely accessible to users. It is hard to imagine if Google and Bing each served half of the fixed customers in the U.S., or if Alibaba, Baidu, and Tencent each only served one-third of the fixed customers in China, how limited and small-scale those applications would be. Operators are increasingly relegated to the role of "channels"; although all internet traffic flows through their infrastructure, they are stripped of the most valuable services.

To escape the "channel" dilemma, telecom operators must shift from paid access to free access 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 transformation poses a significant challenge for large and bureaucratic telecom companies.

The Innovative Model of Decentralized Telecom Provider Roam and Its Implementation

We have noticed that in this transformation, Roam has rapidly emerged through its innovative free usage model, becoming an industry challenger that combines Web3 technology with telecom services. Over the past year, Roam has achieved remarkable growth in user numbers and nodes without significant marketing investment, surpassing one million users and gaining the attention and support of many traditional operators, becoming a leading project in the decentralized physical infrastructure (DePIN) track. As shown in the data below, Roam ranks second on the DEPIN data analysis website depinscan.io.

In-Depth Analysis of How Roam Utilizes Communication Technology and Decentralized Models to Create a New Telecom Operator Model

Roam is the only decentralized communication network established through upgraded OpenRoaming

Globally, WiFi and mobile networks are the two pillars of wireless broadband access. Almost all mobile interactions rely on these two. Since WiFi is usually free to use, it accounts for over 70% of data traffic (as shown in the data below). In the 5G era, the trend of integrating WiFi and mobile networks is becoming increasingly evident. Due to insufficient deployment density of 5G networks, high power consumption of base stations, and high operating costs, operators tend to use WiFi networks to share traffic and reduce operating costs. However, this also means that outdated WiFi networks can no longer meet the demands, and a comprehensive upgrade of WiFi is imperative. This includes upgrading from WiFi 4 and WiFi 5 to the new communication protocols WiFi 6 and WiFi 7 (notably, Roam's self-developed WiFi router is among the first batch of home routers supporting the WiFi 6 protocol), as well as transitioning from traditional username/password logins and Captive Portal web logins to automatic logins based on Passpoint and OpenRoaming with secure certificate backends. According to a market analysis report by 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 qualitative leap compared to ordinary public WiFi. Ordinary public WiFi users often need to log in through a web page, making the login process non-automatic and often unencrypted. In contrast, OpenRoaming network WiFi automatically logs in like mobile cellular networks, and all communications are securely encrypted. This strategic partnership enables Roam to provide unified network access services globally, allowing users to seamlessly roam between cellular and WiFi networks without repeatedly logging into different networks. Through this collaboration, Roam not only expands its network coverage (with over 4 million OpenRoaming WiFi hotspots globally) but also significantly enhances user experience, meeting users' high demands for convenience and continuity.

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

The key to Roam's ability to attract a large number of users lies in its breaking of traditional telecom entry barriers by providing free wireless network access. Leveraging the global trend of WiFi network upgrades and with the support of industry standard organizations, Roam attracts users to participate in the upgrade of the OpenRoaming network. Participants can not only upgrade to a more secure and convenient WiFi but also receive free global eSIM data as an incentive. This approach allows users to access the network for free, whether through WiFi or mobile eSIM. Additionally, users can earn Roam points through network co-construction, which can be redeemed for goods and services. Furthermore, Roam achieves shared CDN bandwidth through hardware network nodes (such as the Rainier MAX60 router), allowing users to gain additional incentives. By participating in the construction and validation of the OpenRoaming network, users can receive global data rewards usable in 200 countries for free. This new model not only significantly reduces network usage costs but also allows users to deeply participate in the revenue sharing of the operational network, thus forming a business closed loop that incentivizes users to further invest in network construction.

This incentive mechanism not only enhances user participation but also helps Roam quickly establish an active user community. Currently, over 600,000 user interactions occur daily for network quality validation and feedback, a high-frequency usage scenario that is difficult to achieve in traditional operators' applications. Roam has found a development direction that is no longer merely a "channel," but rather a network service co-construction community that benefits both users and related businesses. At the same time, Roam values communication between the community and the operations team, with users contributing a wealth of suggestions for network improvements. We once participated in an AMA event about app design and found that community members proposed over 300 app improvement suggestions in just one hour. This community-driven model enables Roam to quickly respond to market demands and user expectations, maintaining a competitive advantage in the industry. Users' active participation not only drives network optimization but also enhances user loyalty and brand stickiness.

Technical Foundation: Web3 and Blockchain

In addition to using telecom technologies like OpenRoaming, Roam's telecom network also relies on the support of Web3 technology. The decentralized nature of blockchain provides security for data transmission and storage, ensuring the privacy and security of user data. 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 challenges of implementation for small and medium-sized merchants, effectively overcoming technical and cost barriers.

Moreover, Roam allows non-WiFi operators (such as credit card issuers, game publishers, schools, etc.) to easily integrate the OpenRoaming framework based on decentralized digital identity, helping their users 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 Expected to Become the First Mass-Adopted WEB3 Telecom Network

In less than a year, Roam has rapidly grown to over one million users, gaining recognition and acceptance in the WEB3 industry despite limited societal awareness. It covers nearly 200 countries and regions globally, with over 820,000 self-owned nodes, and even network nodes have appeared in sparsely populated areas such as the Siberian Plateau, northern Canada, and Alaska.

Users of Roam can easily discover that by participating in the Roam network's check-in verification, they can receive 1-2GB of global free eSIM data each month. If the data is insufficient, the prices for further purchases are also very competitive. In the traditional world, leftover eSIM data often becomes invalid when users switch countries or regions, while Roam's data automatically converts to local data. This can significantly reduce monthly communication costs for frequent international travelers. Therefore, Roam has the opportunity to quickly become the preferred provider of data for travelers.

Further comparisons reveal that Roam also has the potential to become a major data supplier for users' local lives. According to statistics from Statista (left image below) and OECD (right image below), the average American currently spends about $30 per month, consuming around 10GB of data. By participating in the construction of OpenRoaming, Roam users can potentially reduce their wireless access costs by 50% or more in non-roaming situations. In addition to cost savings, Roam's community-driven model greatly enhances user stickiness and creates new operational revenue opportunities.

This real and effective application is expected to become a core product that changes people's lives through blockchain and Web3 technology.

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

Looking ahead to the next five years, we hope Roam can delve deeper into more industries and application scenarios, transforming itself into a bridge that connects everything, achieving seamless integration of users, devices, and AI, and promoting true smart connectivity.

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

Disclaimer

This article is merely a case analysis of the companies we have invested in, aimed at providing 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 regarding its lasting accuracy or appropriateness for specific situations. Therefore, you should not rely solely on the content of this article when making investment decisions.

Any forecasts, estimates, targets, prospects, and/or opinions expressed in this article may change at any time and may differ or conflict with the views expressed by other sources or individuals. The content of this article is for informational purposes only and should not be considered a basis for investment decisions, nor should it be assumed to be complete. You should not consider the content of this article as any form of legal, business, or tax advice, and please consult professional advisors on relevant matters. This article does not constitute investment advice or an offer to provide investment consulting services. We cannot guarantee that any investment targets mentioned, quoted, or described in this article will be profitable, or that future investments will necessarily have similar characteristics and results.

A specific list of investments made by funds managed by Synergis Capital can be viewed here. Please note that this list does not include undisclosed investment projects. This article does not constitute investment advice or an offer to sell, nor does it constitute a solicitation to purchase any interests in any investment vehicles managed by Synergis Capital. Any investment offers or solicitations regarding Synergis Capital investment vehicles will only be made based on the provision of private placement memoranda or related legal documents, and decisions should rely solely on the information contained in those official documents.

This article is submitted content and does not represent the views of BlockBeats.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。