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Here’s how OmniMesh and our partners make money:

OmniMesh is a company that deploys consumer-owned, agile spectrum routing and storage. We have a decentralized technology platform that reduces transaction costs compared to the traditional, hierarchical offerings favored by the large incumbent carriers. This blog illustrates how OmniMesh and our partners profit by using agile spectrum to lower transaction costs and scale up the volume of transactions.

Pre-OmniMesh, internet transactions have to pass through a hierarchy of centralized, constricted gateways utilizing existing ISPs and data centers. Gatekeepers can and do impose high costs per transaction. This drives resource scarcity, raises costs for people on both ends of transactions, and ultimately limits the growth of connected business models. The Holland Tunnel is an apt analogy:

Did you ever wonder why the Home Depot sits on the New Jersey side, and not the Manhattan side? Because commercial traffic to New York has to pass through the tunnel. The gatekeeper sets the rates to move freight through the tunnel, and the limited number of lanes jams traffic and creates inconvenience. This raises costs for shippers and receivers; artificially inflates the cost of goods sold; and limits the amount of commerce that can be conducted.

Today’s telecommunications and storage providers operate like New York’s Port Authority. Their objective is to monetize infrastructure that they wholly own. This behavior raises everyone’s costs and ultimately has a chilling effect on commerce. Did you ever wonder why mobile data plans are expensive and Internet of Things business models have yet to take off? Because today, consumers of those services sit on the Manhattan side of the Internet.

It’s still possible to make money over the centralized Internet, but even the companies that are good at monetizing it (Facebook, Alphabet) are building proprietary infrastructure. They strategize that ownership will more profitable than using the existing gatekeepers; unfortunately, they tend to build more of the same centralized infrastructure that came before.

But what will happen when consumers and shippers get their hands on the means to create their own digital shipping routes? What will change when we route traffic at will, over, under, and around existing, centralized infrastructure instead of through it? What if instead of 9 lanes in a single tunnel with $126 tolls, businesses and consumers build millions of less expensive tunnels—tunnels that might only have one or two virtual lanes, but will only charge pennies per transaction?

That’s the premise behind OmniMesh’s agile spectrum. Our patented, military-proven radio technology wirelessly routes traffic over, under, and around high-congestion or high-cost pathways. The radios are deployed in the decentralized manner of a platform company, ensuring that that OmniMesh and its partners don’t incur high infrastructure costs.

As transaction costs go down and convenience goes up, consumers increase their uptake of video streaming and other connected services. Using OmniMesh for transport, shippers (e.g. content providers and other sellers of connected services) also win as they radically scale up their operations and volume—without having to send heavy truckloads of packets through expensive tunnels, or build central storefronts on the world’s most valuable real estate. Service providers on the OmniMesh network exponentially increase volume without having to build costly infrastructure.

Importantly for OmniMesh and our partners—we make a small margin on every transaction that goes across the decentralized network. OmniMesh’s take is a far cry from the $126 per truckload that the Port Authority gets—but the decentralized, agile spectrum solution results in many more transactions, leading to higher volume and more profits for all.

Decentralization, scalability, and reduced transaction costs are hallmarks of platform companies like airbnb, uber, and eBay—and the way that those companies collect “micro-tolls” for stays, rides, and auctions illustrates how OmniMesh’s model will succeed in expanding and monetizing the Internet’s commercial traffic.