5G Network: The missing link for competitiveness in Latin America

The digital transformation should be a state policy regardless of the governments in power. This will ensure an ordering of the implementation and operation of the new technologies that the operating companies and the state carry out in order to achieve 100% connectivity of the population.

A review of 5G deployment rates around the world highlights the work that Latin America needs to  to keep up with other regions. According to Statista by 2025 about 14% of the world’s mobile network connections will be through 5G technology, while Latin America would be only 7%.

These projections  indicate that the region’s slow progress in adopting this technology is justified by the fact that operators have focused on migrating 2G and 3G customers to 4G networks, which are still not enough. 80% coverage.

Major tech analisis ensures  that the region has an important task before it in terms of investment in infrastructure and spectrum release.

The current progress estimates that the implementation of 5G networks will be greater in countries such as Mexico, Brazil and Chile, which will reach a 10% reach in this technology in 2025. While the majority of the countries in the region are left behind.

The progress made by these three countries in this area is outstanding:

  • In 2021, Chile became the first Latin American country to include the fifth generation network throughout its national territory
  • In February 2021, Mexico announced the arrival of a commercial 5G network for its citizens.
  • By 2025, Brazil is expected to have the largest 5G coverage in Latin America.
  • Uruguay, Argentina, Ecuador, Peru, the Dominican Republic and Suriname are also in the process of rolling out their own 5G networks.

–  In February  of  this year there were about 19 5G networks implemented in Latin America.

Although many Latin American countries do not have 5G networks, the implementation of this is a priority for their governments. While Colombia has delayed its spectrum auction due to presidential elections, some Central American countries such as Costa Rica, El Salvador, Honduras and Guatemala have announced spectrum management and bidding processes for 2022. Setting as a The priority  an optimized infrastructure

 A greater inclusion of the 5G network in the Latin American  region will depend largely on the existing infrastructure, as well as the public and private investments that are made. Governments are key on this path. In addition to auctioning the spectrum, they are responsible for enforcing the appropriate legislation and updating regulations for operators.

For operators, the implementation of the 5G network will have an effect on their existing telecommunications infrastructure.

Analysis published by Bloomberg and Mckinsey  shows that at least a 10x increase in network performance is needed for 5G technology to ensure:

  • Enhanced Mobile Broadband (eMBB)
  • Ultra Reliable Low Latency Communications (URLLC)
  • And massive machine-type communications (mMTC)

This means that operators must invest in core network and radio access network (RAN) infrastructure, which can be costly for the region.

Some operators have decided to upgrade their existing infrastructures for the first phase of 5G deployment.The 5G network is necessary for Latin America to remain competitive, but on the down side of the spectrum the increased data usage required to run 5G applications. This  means that the switch to the 5G network could increase the total energy consumption of the network. Around 150% and 170% by 2026. Country operators will need to invest in technologies such as efficient cooling solutions to help offset rising costs.

Much of the 5G network rollout is tied to both infrastructure and investment in new hardware to support increased demand. Statista estimates that the six largest economies in Latin America (Brazil, Mexico, Argentina, Colombia, Chile and Peru) will probably invest a total of $120 billion to integrate the 5G network in all their territories.This includes changes ranging from the modernization of antennas and telecommunications towers to the capacity of batteries for the continuity of the electricity supply.

Lithium-ion batteries are critical to supporting many applications, due to their higher power density, lower weight, and longer lifespan. In addition, they offer integrated battery management systems (BMS) to monitor the status of the batteries.

As countries continue to move towards 5G, we expect to see progress in developing products and services with innovative technological capabilities that will only be possible with the widespread adoption of 5G technology. In addition to speed and latency reduction, the possibilities that the 5G network will bring to industries are enormous, with a direct effect on business models, work schemes and supply chains.