In telecommunications, the cycle begins with huge investments in next-generation technology, followed by hard work to turn that capacity into sustainable profitability.
Data consumption continues to rise; Global mobile data traffic is on track to triple between 2023 and 2029, and global 5G subscriptions are expected to reach 5.3 billion By the end of 2029. However, despite this demand, the underlying economics of network expansion are under increasing pressure.
The basic challenge is familiar: the last mile. This last stage of connectivity represents a known marginal challenge, as the revenue generated by new services can be offset by the significant cost of expanding coverage, especially inland and in dense urban areas.
For telecoms, the crucial question is how to expand coverage without triggering another major capital-intensive capital cycle. Decentralized physical infrastructure networks, or DePINs, are emerging as a key partnership model to solve this problem.
Why the last mile is putting pressure on your margins
Telecom companies have already invested Billions In spectrum, core and fiber auctions. The real cost pressure today is in last-mile expansion: acquiring new cell towers, providing reliable indoor coverage, and managing recurring operating costs for maintenance, site rent, and rising energy bills.
The push toward private 5G and new IoT services only intensifies this pressure. These applications require a denser network of small, local sites that are operationally complex and expensive to deploy and manage one by one.
Not surprisingly, telecom sector capex-to-revenue ratios remain high, often hovering at average. 17-20% scale, with a significant portion of this spending allocated to last-mile construction operations. The traditional “we build everything ourselves” model is becoming increasingly difficult to justify economically.
What depin actually means for telecom companies
Think of DePIN as creating a marketplace for connectivity, much like how Airbnb created a marketplace for lodging. Instead of building each hotel yourself, you can take advantage of a wide, quality-assured selection of existing rooms. DePIN applies this same logic to wireless infrastructure. It is a network of physical access points, such as routers and small cells, deployed not only by the operator, but by a broader community of partners and individuals.
These access points are verified, managed, and rewarded through a decentralized coordination layer that is completely invisible to your end customer. The user only sees your trusted brand.
As an operator, you have access to a pre-existing external set of infrastructure to offload traffic and fill coverage gaps. You retain full control over the customer relationship, branding, pricing, and service level agreements. Meanwhile, the DePIN network is compensated based on the coverage and capacity it provides.
It’s not about creating a new, competing operator; It’s about partnering with a new class of last-mile infrastructure providers. While working with a Fortune 500 company, we recorded a 23% increase in customers, an 82% increase in data transactions, and a 48% growth in connected devices within one year. The bottom line is strong: DePIN is already generating revenue and unlocking growth where the traditional model faces cost constraints.
Why depin is the cheapest way to extend coverage
For any C-level executive, the logic behind the DePIN partnership goes back to financial strategy and risk reduction. You no longer have to bear the full capital burden for each new coverage point. This allows you to test the waters in new markets with minimal initial financial risk before committing to a full traditional build.
The spending model is shifting from heavy and rigid capital expenditures to flexible and scalable operating expenditures. You only pay for the coverage you actually use. This model is well suited to the requirements of 5G and IoT networks, which rely on covering many small, local areas efficiently.
Next steps for communications leaders
The way forward is clear and doable. I urge telecom leaders to begin exploring this model not as a far-fetched concept, but as a near-term strategic tool.
First, identify two or three segments where last-mile costs are highest and margins are lowest; Think indoor locations, sprawling corporate campuses, or known urban coverage gaps. Next, conduct a focused trial using the DePIN platform in these specific areas.
Then, measure results against clear KPIs: cost per megabyte of coverage, quality of service such as response time and uptime, and any increase in new connections or device density. Finally, evaluate the direct impact of the pilot on your profit margins, speed of deployment, and customer satisfaction, especially your key B2B customers.
In a world where traffic and customer expectations grow faster than capex budgets, the winning operator will be the one that combines its existing towers with “invisible” last-mile partners.
The opinions expressed in this article are solely those of the author and do not represent Express Mode. While the information provided in this publication is obtained from sources that The Fast Mode believes to be reliable, The Fast Mode is not responsible for any losses or damages arising from any limitations to the information, changes, inaccuracies, misrepresentations, omissions or errors contained therein. The title is for ease of reference and does not affect the information provided.
