Introduction
In an increasingly uncertain international context, with tariffs imposed by the United States on the world and particularly on China, Mexico has the opportunity once again to position itself as a key investment destination for advanced manufacturing. This is where 5G comes in.
The Role of 5G in Advanced Manufacturing
Integrating 5G networks provides a competitive platform for the industry by enabling automated processes, hyperconnectivity, and real-time decision-making. Sectors such as automotive, electronics, or e-commerce can experience a significant productivity boost if they have robust and stable 5G networks. Currently, while countries like South Korea or China surpass 90% population coverage with 5G, Mexico barely reaches 54%. This gap is not trivial. It means that the country is missing out on opportunities to attract foreign direct investment (FDI) seeking resilient, efficient, and digitally-equipped supply chains comparable to developed markets.
Global Trade Rivalry and Mexico’s Opportunity
Given the growing trade rivalry between the U.S. and China, global companies are urgently seeking to diversify their production outside Southeast Asia. Mexico, once again, emerges as an attractive candidate. However, this opportunity requires favorable connectivity conditions such as available radio-electric spectrum, clear rules for its licensing, competitive costs, and an environment that fosters technological investment.
The Impact of Spectrum Licensing Cancellation
Unfortunately, the cancellation of the IFT-12 auction earlier this year sent a contrary signal. Unattractive rules, high spectrum costs, and uncertainty about the regulator’s role left the market stagnant. If Mexico wants to remain competitive in the new global trade geography, it is urgent to rethink telecommunications public policy with a strategic vision.
Private 5G Networks: An Untapped Advantage
Beyond mobile network deployment, Mexico has an underexplored advantage: the growth of private 5G networks (RP5G) in sectors like mining, manufacturing, or agriculture demonstrates this. These networks enable critical operations with low latency and high security, making them ideal for automating processes and reducing costs in strategic sectors. With a more flexible regulatory framework, such as “secondary use” of the spectrum, these solutions could scale and aid advanced manufacturing.
Automotive Industry Example
The automotive industry is another example. In Mexico, highly technological auto parts for autonomous vehicles are developed, which require advanced connectivity to function. In a future where most cars will be interconnected, having local 5G infrastructure will be a decisive factor in attracting new investments to the country.
5G’s Impact on the Digital Ecosystem
Beyond manufacturing, 5G also drives the digital ecosystem: e-commerce, audio and video platforms, video games, and digital banking will continue generating substantial data volumes. This has already triggered a boom in data center investments, especially in regions like Querétaro, Mexico City, or Jalisco, driven by the need for decentralized and efficient digital infrastructure.
5G: A Crucial Condition for Global Economic Competition
5G should not be considered a prerequisite for competing in the global economy, so its deployment must be at the center of discussions to enhance industry competitiveness and avoid missing this second opportunity.
Key Questions and Answers
- What is the significance of 5G technology for Mexico’s advanced manufacturing sector?
5G enables automated processes, hyperconnectivity, and real-time decision-making, allowing sectors like automotive, electronics, and e-commerce to boost productivity significantly. With robust and stable 5G networks, Mexico can attract foreign direct investment seeking resilient and digitally-equipped supply chains.
- How does global trade rivalry impact Mexico’s position in advanced manufacturing?
The growing trade rivalry between the U.S. and China pushes global companies to diversify production outside Southeast Asia, making Mexico an attractive candidate. However, favorable connectivity conditions are essential for the country to remain competitive.
- What are private 5G networks, and how can they benefit Mexico’s strategic sectors?
Private 5G networks (RP5G) offer low-latency, high-security operations ideal for automating processes and reducing costs in strategic sectors like mining, manufacturing, or agriculture. A flexible regulatory framework can help these solutions scale and aid advanced manufacturing.
- How does 5G support the growth of Mexico’s digital ecosystem?
5G fuels the digital ecosystem by enabling e-commerce, audio and video platforms, video games, and digital banking. This has led to a boom in data center investments across regions like Querétaro, Mexico City, and Jalisco, driven by the need for decentralized and efficient digital infrastructure.
- Why is 5G crucial for Mexico’s competitiveness in the global economy?
5G is not just a prerequisite but a key condition for competing in the global economy. Its deployment must be at the center of discussions to enhance industry competitiveness and avoid missing this second opportunity.
