TerraNet: Peer-to-Peer Cellular

TerraNet, a Swedish company, has announced that the first implementation of their revolutionary phone network will take place in South America later this year, with plans for a commercial debut in the works for 2009. The concept behind the network relies on using the handsets themselves to create a free wireless network. These would be augmented by low-cost substations. In its proposed form, the setup is purely peer-to-peer and eliminates all of the expensive overhead involved in setting up regular cell phone service.


The service is accomplished by using handsets adapted to work as peers. When a TerraNet phone switches on, it looks for other handsets within range. Each of these peers can route data or calls for other phones in the network. Though each handset has an effective range of about one kilometre, a call can be routed through several different phones, effectively extending the range as long as there is another phone to serve as a re-transmitter.


The idea has far-reaching implications for the developing world. Although it won't necessarily replace wireless service in metropolitan centers, it could be extremely effective in rural or isolated areas. For example, a small village in Africa doesn't have enough potential subscribers to justify the installation of base stations and towers, as well as the costs of connecting these over hundreds of miles to the nearest existing network. However, a P2P network requires no extra hardware aside from the phones themselves. This, as well as the lack of maintainance required, makes it an attractive option.


This idea has been proposed before, but TerraNet brings some very practical solutions to several important questions. The company has developed several protocols to address day-to-day issues. Switching from tower to tower or provider to provider constantly results in a significant drain on a phone's battery. A power-saving algorithm, vital for places without reliable electricity, is already in place on the phones TerraNet plans to use. Also included is high-end encryption, eliminating concerns over eavesdropping. TerraNet also says the process of distributing data flow through the network has been perfected and patented. While congestion is still possible, this will greatly increase the amount of information that can be passed over the network at any one time.


Finally, the company touts its interoperability with existing networks. Using a gateway consisting of a regular PC with an inexpensive USB device, a TerraNet network can be connected to another P2P or standard Global System for Mobile (GSM) network, meaning users are no longer restricted to their neighborhood in making calls.


Although many details, such as specifics of the protocols and specific frequencies remain closed, TerraNet is confident that commercial applications of their concept will begin within two years. With little information coming from inside the company itself, the results will have to speak for themselves.