Driven by the wave of global informatization, the traditional telecom industry faces unprecedented challenges.

On the one hand, the upfront investment pressure of 5G continues to grow, while on the other, revenue model transformation has yet to materialize, resulting in a lackluster performance in value-added services. Revenue from traditional communications services continues to decline due to competitive pressure.

As shown in the graph below, while revenue in the telecom industry for leading U.S.-listed companies is 50% higher than that of internet giants, the former’s profitability is only 30% of the latter. The telecom industry’s profit margin stands at just 20% of that of internet giants, with net income barely holding at around 5%. Compared with internet companies, the market value of telecom operators is only 30%, reflecting investors’ lack of confidence in capital-intensive models with limited growth potential.

Limitations of Traditional Telecom Business Models

Traditional telecom operators rely on users signing long-term contracts and paying fixed fees for network access, a “pay-to-use” model that is increasingly inefficient in the digital age. Users generally can only select one service provider—such as AT&T, Verizon, or T-Mobile—without the flexibility to switch providers or use multiple providers concurrently. This not only fragments the user base but also ignores customer experience, making it difficult to attract new customers.

In contrast, internet services like search, social media, and e-commerce are generally freely available to users. Imagine how limiting it would be if Google and Bing each served only half of the U.S. market, or if Alibaba, Baidu, and Tencent each only catered to a third of China—such segmentation would be highly restrictive. Telecom operators are increasingly relegated to being mere “pipes.” While all internet traffic flows through their infrastructure, they are excluded from the highest-value services.

To escape the “pipe” dilemma, telecom operators must shift from paid access to free access, thereby covering all consumers, enhancing network effects, and delivering high-value services directly to users instead of charging limited fixed “pipe” fees. However, such a transformation is a significant challenge for large, bureaucratic telecom firms.

Roam: A Decentralized Telecom Innovator with a Free Access Model

Amid this transformation, Roam has emerged rapidly by innovating with a free-to-use model, challenging the traditional telecom landscape with its integration of Web3 technology and telecommunications services. Over the past year, without massive marketing investments, Roam achieved astonishing growth in user numbers and node deployments, reaching over one million users.

It has garnered considerable attention from traditional telecom operators, becoming a leading project in the decentralized physical infrastructure network (DePIN) space. As illustrated in the chart below, Roam ranks second on depinscan.io, a DePIN data analysis platform.

Roam: Pioneering a New Telecom Model with Communication Technology and Decentralization

Roam is the only decentralized telecom network built by upgrading OpenRoaming architecture

Globally, WiFi and cellular networks are the two main pillars of wireless broadband access. Almost all mobile interactions depend on these two. WiFi carries over 70% of data traffic (as shown in the chart below), mainly because it is generally free to use. In the 5G era, the convergence trend between WiFi and cellular networks is becoming more apparent. Due to the inadequate density of 5G deployments, high power consumption of base stations, and elevated operating costs, operators tend to leverage WiFi networks to offload traffic, thereby reducing costs.

However, outdated WiFi networks can no longer meet modern needs, and comprehensive WiFi upgrades have become imperative upgrades ranging from WiFi 4 and WiFi 5 to new communication protocols like WiFi 6 and WiFi 7. Roam’s self-developed WiFi router was among the earliest to support WiFi 6 for home use. Additionally, WiFi access methods have shifted from traditional username/password login and Captive Portal to backend automatic logins based on Passpoint and OpenRoaming secure certificates. According to Market and Markets, this related market is expected to grow fourfold in the next five years.

Roam has partnered with the WiFi Alliance and the Wireless Broadband Alliance (WBA) to support the adoption of OpenRoaming. The OpenRoaming network marks a substantial improvement over ordinary public WiFi. Typically, public WiFi requires users to log in via a web portal, lacking automation and often providing unencrypted connections. In contrast, OpenRoaming works like a cellular network with automatic logins and end-to-end encryption.

This strategic partnership enables Roam to deliver a unified access experience worldwide, where users no longer need to repeatedly log into different networks, achieving seamless roaming between cellular and WiFi networks. With this collaboration, Roam not only expanded its network to over four million OpenRoaming WiFi hotspots globally but also significantly improved user experience, meeting their demand for convenience and continuity.

A New Telecom Business Model: Free Access Driving Decentralized Network Construction

The key to Roam’s user acquisition lies in breaking down traditional telecom barriers by offering free wireless network access. Leveraging the global trend of WiFi network upgrades, and with support from industry standard bodies, Roam has attracted users to participate in upgrading the OpenRoaming network. Participants not only upgrade to more secure and convenient WiFi but also receive free global eSIM data as an incentive.

With this model, users can connect via both WiFi and cellular eSIM for free, and also earn Roam points for co-building the network, which can be redeemed for goods and services. Additionally, users can earn rewards through shared CDN bandwidth from hardware nodes, like the Rainier MAX60 router.

By participating in network construction and verification, users receive global data access, available in over 200 countries, as a reward. This model not only significantly reduces costs for users but also deeply involves them in sharing network profits, forming a closed-loop incentive that encourages further investment in network expansion.

This incentive mechanism has increased user engagement and enabled Roam to establish an active community quickly. Currently, over 600,000 daily user engagements are recorded for network quality validation and feedback—something traditional operators struggle to achieve. Roam has found a way to transcend the “pipe” role, creating a co-built community where users and businesses alike benefit from the network service.

Roam also values the communication between its community and the operational team; users have contributed numerous suggestions for network improvement. During an AMA on app design, over 300 suggestions were made within an hour. This community-driven approach allows Roam to respond swiftly to market demands and user expectations, maintaining a competitive edge. User participation drives network optimization while enhancing loyalty and brand stickiness.

Technical Foundations: Web3 and Blockchain

Beyond leveraging telecommunications technologies like OpenRoaming, Roam’s telecom network is underpinned by Web3 technologies. Blockchain’s decentralized nature ensures the privacy and security of user data during transmission and storage. MetaBlox Labs Inc., the team behind Roam, has become one of the top ten global identity issuers for OpenRoaming (the only Web3 company among them), standing alongside Cisco.

Unlike other issuers, Roam developed an innovative W3C decentralized digital identity solution to address the deployment challenges of OpenRoaming among small and medium-sized merchants, effectively reducing technical and cost barriers.

Roam also allows non-WiFi operators—such as credit card issuers, game publishers, and educational institutions—to integrate the decentralized digital identity-based OpenRoaming framework easily, enabling their users to enjoy free and secure WiFi roaming. This approach not only expands OpenRoaming’s application scenarios but also extends Roam’s influence, allowing more users to experience convenient network access.

Roam: The First Web3 Telecom Network to Achieve Large-Scale Adoption

Within just a year, Roam has grown to over one million users, spanning nearly 200 countries and regions worldwide, with over 820,000 self-operated nodes—even reaching remote areas like the Siberian Plateau, Northern Canada, and Alaska. This growth is remarkable considering the limited social awareness and acceptance of Web3 technologies.

Roam users can earn 1-2GB of global eSIM data per month by participating in the network’s verification process. If additional data is needed, purchasing more is very competitively priced. In the traditional model, eSIM data often becomes invalid when switching countries or regions, but Roam’s data automatically adapts to local networks. This feature can greatly reduce monthly communication costs for frequent travelers, potentially making Roam the preferred provider for international travelers.

Moreover, Roam has the potential to become the main data provider for local users.

According to Statista and OECD data, the average American currently spends $30 per month for about 10GB of data. By participating in OpenRoaming construction in non-roaming situations, Roam users can lower their monthly wireless access costs by 50% or more. Beyond cost savings, Roam’s community-driven model greatly enhances user loyalty and opens new revenue opportunities, making it a core product showcasing how blockchain and Web3 technologies can transform daily life.

The continuous development of communication and AI technologies means that certificate-based WiFi OpenRoaming technology will have more applications in the future, particularly in smart homes, enhancing secure and seamless device access and supporting AI integration into smart environments. Roam’s potential under this context is enormous.

Over the next five years, Roam aims to deepen its role across industries and application scenarios—connecting individuals and meeting enterprise needs—ultimately becoming a bridge linking users, devices, and AI. This vision aims for seamless connectivity and intelligent integration.

Through multiple efforts, Roam is redefining a new business model for the telecom industry, providing a richer network experience for users. It exemplifies how Web3 can reshape industries and serves as an important guide for the future development of the telecom industry.

Disclaimer

This article serves only as a case analysis of our invested company to provide an in-depth understanding of its business model and technological foundations. While we believe the information provided is reliable, we do not guarantee its long-term accuracy or applicability to specific situations. Thus, the content of this article should not be used as the sole basis for making investment decisions.

Any forecasts, estimates, goals, perspectives, and/or opinions expressed herein are subject to change and may differ from other sources or individuals. The content is for informational purposes only and should not be considered complete or as legal, business, or tax advice of any nature. Please consult professional advisors regarding such matters. This document does not constitute investment advice or an offer to provide investment advisory services. We cannot guarantee that any investments mentioned, cited, or described will be profitable, nor that future investments will share similar characteristics and results.

A detailed list of investments made by Synergis Capital-managed funds can be found on Synergis Capital website. Please note, this list excludes projects that have not yet been disclosed. This document does not constitute investment advice or a solicitation to buy interests in any investment vehicles managed by Synergis Capital. Any offer or solicitation regarding investments in Synergis Capital’s managed investment vehicles will be made only on the basis of offering memoranda or other legal documents, and decisions should rely solely on the information contained in those formal documents.

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