Due to delays in 5G, work is lost in Latin America

Latin American specialists have confirmed that business opportunities are being lost due to widespread delays in 5G networks, and Mexico is no exception.

According to a report by 5G Americas, in Los Angeles, there is a general delay in the allocation of radio spectrum, a key input for telecommunications, which has affected the deployment of networks, including 5G. Therefore, companies that provide technical services or solutions that must be tested in 5G networks have to look for alternative destinations.

“A company that sells services or technology equipment that is tested in a 5G network to see if it meets the criteria for customers who are in Asia, Europe, the United States or Canada, and do not have a 5G network, will lose their 5G network,” Jose Otero, vice president of Latin America and the Caribbean for Network 5G Americas”.

“It’s happened in Latin America, and the countries where they make energy equipment or pharmaceuticals, or any other equipment, they’ve lost customers from Asia and Europe,” Otero said. Lost contracts often represent millions of dollars in revenue for jobs. He added that it will be created.

This year in Mexico, through a tender, the Federal Institute of Communications (IFT) will auction 41 blocks of radio spectrum, including some needed for 5G networks. However, Otero said the high cost of spectrum in the country could discourage those interested in competing for blocks.

In 2021, the cost of the 600MHz (megahertz), 3.3 to 3.6 GHz (gigahertz) and L bands, required for 5G deployment, proposed by the Treasury was 186% higher than the cost proposed by the IFT. In addition, the use and democratization of virtual reality in Mexico and Latin America has been restricted by the lack of networks that allow it to operate and the cost of technology entry.

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global entertainment & Media forecasts from PricewaterhouseCoopers indicate that virtual reality has no income in any country in the region.

“Expanding the broadband technology infrastructure is very necessary because it represents a very high consumption of band. (For virtual reality) prices are still primitive and consumption in these devices is very high, and this is interfering with the adoption of the technology,” said Anderson Ramirez, Leading Partner in Technology, Media and Communications and digital services at PwC Mexico.

By 2026, 5G subscriptions in the region will account for 34% of Latin American connections, 4G will be 48% and the rest will be 3G and 2G, according to Ericsson’s Mobility Report.

According to Ericsson, some of the key industries that will benefit most from 5G networks are manufacturing, energy, utilities, public safety, healthcare, public transportation, media and entertainment, automotive, financial services, retail, and agriculture.

* This article was originally published in digitalpolicylaw.com It is reproduced under permission.

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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