With its eyes on the future, blockchain startup Nova Labs reveals plans for a disruptive phone plan offering unlimited text, talk, and data for just $5 per month. This bold move, initially available exclusively to Miami residents or invitees, sparks intrigue from an industry fraught with high prices and customer dissatisfaction.
Amidst sharp turns and pivots throughout its history, Nova Labs evolved from a focus on Internet of Things (IoT) and a problematic branding issue to fully embracing cryptocurrency and disruptive models. It recently gained the backing of high-profile investors after securing $200 million at a valuation of $1.2 billion, pushing its total funding over $250 million – not a small feat for a blockchain startup.
Behind the scenes, Nova Labs aims to power the $5 phone plan utilizing 5G hotspots owned by people and businesses. Customers who sign up for the service will gain access to these hotspots using their existing mobile devices, including iPhones and Android smartphones – a feature enabled by the startup’s widely known Helium Network.
Nova Labs bravely stomps on turf dominated by giant operators like T-Mobile, known for its $40 per month unlimited package. Despite seeming affordability, such plans struggled to gain widespread adoption, crunching subscribers under the heels of unsatisfactory customer service and price wars.
Amir Haleem, Nova Labs CEO, sees their service as a paradigm shift from traditional telco economics. The Helium Network plays a key role as it encourages hotspot owners to purchase hotspots ranging from $1,500 to $7,000, rewarding them with crypto tokens for every gigabyte of data provided to customers.
Nova Labs is far from being alone in merging telecommunications with blockchain and cryptocurrency. Sirin Labs pioneered the way with the launch of a blockchain smartphone in 2018, and Solana Labs followed suit recently. The marriage of these two industries reveals an undeniable synergy, notably, Nova Labs’ recent collaboration with T-Mobile to introduce a “crypto-powered mobile service.”
Despite enhancing cellular service affordability, Haleem acknowledged the importance of their association with the traditional telecom giant. The CEO notes, “We’re not deluding ourselves into thinking that the network is usable at the moment entirely”, referencing the limited coverage and spottiness of their offering. A hidden card up Nova Labs’ sleeves, this key partnership would offer crucial support during initial growth stages and eventual reliance on the Helium network.
Source: Cryptonews
