Why we invested in FreedomFi, the open 5G company

The emergence of 5G wireless networks offers higher speeds, lower latency, and greater capacity than 4G. But building 5G cellular network infrastructure is expensive, and the costs are an impediment to global connectivity.  

Now, an innovative crowdsourcing model is using cryptocurrency as an incentive for individuals to support the creation of 5G small cell networks. FreedomFi, which calls itself “the open 5G company,”  has partnered with Helium – a pioneer in decentralized wireless. The partnership enables consumers to earn crypto by financing cellular network infrastructure. This creates partnership opportunities with telecom operators, equipment manufacturers, and other ecosystem players.

Most recently, FreedomFi announced a deal with Bobcat, the leading manufacturer of Helium-compatible wireless hotspots, to facilitate the deployment of 5G-ready hotspots using FreedomFi technology. They also have partnered with Baicells, certifying a lineup of small cell products for plug-and-play compatibility with FreedomFi software. 

What differentiates FreedomFi is its leadership in both open source and blockchain technology. The company’s open source solutions provide a cost-effective option for building 5G infrastructure. We think there is tremendous potential for blockchain-incentivized cellular infrastructure, which is why we joined BlueYard Capital and Qualcomm Ventures in a $10 million Series A funding round for FreedomFi.

FreedomFi’s software and hardware enable network providers to augment their 5G footprint at zero fixed cost because retail users pay for the equipment needed to deploy the network. Those consumers can mine crypto as an incentive for underwriting a network buildout. In particular, everyday users who know nothing about 5G can mine Helium’s HNT coin. They can then exchange their HNT for other cryptocurrencies or for hard currency.

Moreover, FreedomFi is one of the top contributors of code to Project Magma, which is managed by the Linux Foundation. It is quickly emerging as the standard platform for crowd-sourced wireless infrastructure.

We also have confidence in FreedomFi’s team, which has a track record of success. CEO Boris Renski and CTO Joey Padden are the company’s co-founders. In particular, their collective track record includes helping to develop and commercialize open source projects, such as OpenStack and Kubernetes.   

By commercializing open source, Magma-based software solutions, FreedomFi is positioning itself as a leading provider of 5G cellular infrastructure for the distributed wireless space. That should bode well for everything from mobile broadband and wireless networks to Internet of Things (IoT) and smart city applications.

Raymond Liao is a Managing Director at Samsung Next. Samsung Next's investment strategy is limited to its own views and does not reflect the vision or strategy of any other Samsung business unit, including, but not limited to, Samsung Electronics.

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