Pricing overview
Helium's pricing structure centers on Data Credits (DC), which are used to pay for all network transactions and data transfer. Data Credits are a utility token pegged to the US dollar at a fixed rate of $0.00001 per DC, ensuring predictable costs for network usage regardless of fluctuations in the value of the Helium Network Token (HNT). This fixed peg means that 100,000 Data Credits always equal $1.00 USD.
To acquire Data Credits, users must burn HNT. HNT is the native cryptocurrency of the Helium network, earned by Hotspot operators who provide wireless coverage for IoT devices or 5G services. The burning mechanism creates a direct economic link between network utility and the value of HNT, as increased network usage drives demand for HNT to be converted into DCs. The process of acquiring and using Data Credits is detailed in the Helium Data Credits documentation.
The cost calculation for using the Helium network depends on the specific service:
- Helium IOT (LoRaWAN): Costs are incurred for sending device data packets, asserting Hotspot locations, and other network transactions. Each data packet sent consumes a certain number of Data Credits based on its size and type.
- Helium Mobile (5G): Users pay for cellular data usage, typically measured in gigabytes (GB), which is then converted into Data Credit consumption. This model supports mobile devices connecting to Helium 5G Hotspots.
This pricing model aims to provide a stable cost for network users while incentivizing Hotspot deployment and network expansion through HNT rewards.
Plans and tiers
Helium does not offer traditional subscription plans or tiered pricing in the way a centralized service might. Instead, its pricing is entirely usage-based, paid for with Data Credits. Users acquire Data Credits as needed, and these are consumed for specific actions on the network. There are no monthly fees, minimum commitments, or different service tiers that alter the per-unit cost of Data Credits.
The primary 'tiers' or categories of usage are determined by the type of Helium network being utilized:
| Service Category | Pricing Model | Key Limits / Consumption | Best For |
|---|---|---|---|
| Helium IOT (LoRaWAN) | Pay-per-packet / Pay-per-transaction with Data Credits |
|
Low-power IoT devices, asset tracking, smart agriculture, environmental monitoring requiring infrequent, small data packets. |
| Helium Mobile (5G) | Pay-per-data-unit (e.g., per GB) with Data Credits |
|
Cellular connectivity for smartphones, tablets, and high-bandwidth IoT applications where Helium 5G coverage is available. |
| Hotspot Operation | No direct cost for operating a Hotspot (initial hardware cost applies) |
|
Individuals and businesses looking to provide decentralized wireless coverage and earn HNT rewards. |
The exact Data Credit consumption for various LoRaWAN packet sizes is specified within the Helium documentation on Data Credits and packets. This granular, usage-based approach allows for precise cost management for IoT deployments.
Free tier and limits
Helium does not offer a direct free tier for Data Credit consumption in the traditional sense, where a certain amount of usage is provided without cost. All network activities that consume Data Credits require them to be purchased by burning HNT.
However, the Helium network incorporates a mechanism that can effectively reduce or offset costs for participants: earning HNT. Individuals or entities operating Helium Hotspots (for LoRaWAN) or Helium 5G radios contribute to the network's coverage and data transfer capabilities. In exchange for providing this infrastructure, they earn HNT. These earned HNT can then be converted into Data Credits to pay for their own device usage, or sold on exchanges. This creates a decentralized incentive model where users can potentially offset their usage costs by contributing to the network.
For developers and device makers, this means that while there isn't a free allowance of Data Credits, participation in the network as a Hotspot operator can generate the HNT necessary to cover device communication costs. This model differs from centralized cloud providers that often offer a limited free tier for a set period or usage volume, such as the AWS Free Tier which provides certain services up to defined limits for new customers.
Therefore, the 'free' aspect on Helium is tied to active participation in network infrastructure rather than a complimentary usage allowance for all users.
Real-world cost examples
Understanding Helium's Data Credit consumption helps estimate real-world costs for various applications. Since 100,000 DC equals $1.00 USD, each Data Credit costs $0.00001.
Example 1: Basic IoT Sensor (LoRaWAN)
Consider a temperature sensor sending a 20-byte data packet every hour. According to Helium's packet pricing, a payload up to 24 bytes consumes 1 Data Credit (DC).
- Daily Cost: 1 packet/hour * 24 hours/day * 1 DC/packet = 24 DC
- Monthly Cost: 24 DC/day * 30 days/month = 720 DC
- Annual Cost: 720 DC/month * 12 months/year = 8,640 DC
- USD Annual Cost: 8,640 DC * $0.00001/DC = $0.0864
This example demonstrates that for low-data IoT devices, the cost of connectivity on Helium can be very low.
Example 2: Asset Tracker with Location Updates (LoRaWAN)
An asset tracker sends a 40-byte data packet every 15 minutes, which includes GPS coordinates. A 40-byte payload consumes 2 Data Credits (DC).
- Daily Cost: (60 minutes / 15 minutes) * 24 hours/day * 2 DC/packet = 4 * 24 * 2 = 192 DC
- Monthly Cost: 192 DC/day * 30 days/month = 5,760 DC
- Annual Cost: 5,760 DC/month * 12 months/year = 69,120 DC
- USD Annual Cost: 69,120 DC * $0.00001/DC = $0.6912
Even with more frequent and slightly larger packets, the annual cost remains under a dollar.
Example 3: Hotspot Location Assertion
When a new Helium Hotspot is deployed, it needs to assert its location on the blockchain. This transaction costs 50,000 Data Credits.
- Cost per Assertion: 50,000 DC
- USD Cost per Assertion: 50,000 DC * $0.00001/DC = $0.50
This is a one-time or infrequent cost for Hotspot operators.
Example 4: Helium Mobile 5G Usage
For Helium Mobile, the pricing is typically expressed in traditional mobile data units (e.g., GB) by participating carriers. Assume a user consumes 5 GB of data in a month, and the carrier prices this at $10.00 USD. The carrier would then convert this $10.00 into Data Credits to pay the network.
- Data Credits Consumed: $10.00 / $0.00001 per DC = 1,000,000 DC
The end-user experience is a standard mobile bill, while the underlying network settlement occurs via Data Credits. The specifics of Helium Mobile plans are set by mobile network operators using the Helium network.
How the pricing compares
Helium's decentralized, usage-based pricing model for IoT connectivity offers distinct characteristics when compared to traditional cellular IoT providers or other LPWAN (Low-Power Wide-Area Network) solutions.
Comparison with Traditional Cellular IoT (e.g., Cat-M1, NB-IoT)
- Helium: Priced per small data packet (e.g., 1 DC per 24 bytes, or $0.00001). No monthly subscriptions for devices. Costs are fixed in USD via Data Credits, regardless of HNT price.
- Cellular IoT: Often involves monthly subscription fees per device, plus data usage charges that can vary by region and carrier. While suitable for higher bandwidth, the per-device cost can accumulate quickly for large deployments of low-data devices. For example, a typical Twilio IoT SIM might start around $2 per month per device, plus data usage.
- Key Difference: Helium offers a potentially lower cost floor for extremely low-data applications due to its granular, pay-per-packet model without fixed monthly fees.
Comparison with Centralized LPWAN Providers (e.g., Sigfox, LoRa Cloud)
- Helium: Decentralized network, pay-per-packet with Data Credits. Network coverage is community-driven.
- Sigfox: Offers subscription plans typically tiered by messages per day or year, with varying costs based on volume. Sigfox operates its own centralized network infrastructure. For instance, Sigfox connectivity plans usually involve annual subscriptions.
- LoRa Cloud (Semtech): Often integrated with LoRaWAN network server providers, offering services like geolocation. Pricing for LoRa Cloud services can be usage-based (e.g., per geolocation lookup) or subscription-based, often requiring separate agreements with network operators.
- Key Difference: Helium's decentralized nature means no single entity controls pricing or network access, and costs are transparent through the blockchain.
Comparison with Other Blockchain-based Connectivity (e.g., Swarm)
- Helium: Specialized for IoT and 5G, using a unique proof-of-coverage consensus for wireless networks. Data Credits provide stable pricing.
- Swarm: A decentralized storage and communication network, but not specifically optimized for low-power IoT devices in the same way Helium's LoRaWAN is. Pricing on Swarm is typically based on storage and bandwidth, paid in its native BZZ token, and can be subject to token price volatility. The Swarm pricing model is more akin to decentralized cloud storage.
- Key Difference: Helium's focus on physical wireless coverage and its Data Credit peg provides a more predictable and specialized solution for IoT and mobile connectivity compared to general-purpose decentralized networks.
Overall, Helium's pricing model aims to provide a cost-effective and transparent solution for low-power IoT and 5G connectivity by leveraging a decentralized network and a stable utility token for network access.