Introduction
The latest mobile technology, 5G, has been hailed as the next big revolution in connectivity. With promises of ultra-fast speeds, low latency, and the ability to connect numerous devices simultaneously, it’s easy to get caught up in the hype. However, as countries like China, Germany, and South Korea implement advanced 5G solutions, concerns arise about the slow progress of 5G adoption in Mexico and Latin America, potentially leaving the region behind.
Challenges to 5G Adoption
Beyond technological infrastructure, significant challenges hinder 5G adoption. One major obstacle is the low purchasing power of a substantial portion of the population. The implementation of 5G not only depends on the availability of networks and spectrum but also on users’ economic capacity to access compatible devices and associated services. In many cases, the cost of a 5G-enabled smartphone exceeds the monthly salary of numerous consumers.
Limited Clear Advantages
If surveyed, most 5G users might struggle to identify a clear advantage over their previous LTE experience, not in terms of speed, but regarding new applications they previously didn’t use. Currently, there are no mass-market applications that justify a general migration to this new technology, which aren’t already supported by 4G. This leaves consumers without a sense of missing out on crucial advancements.
Paired 5G Adoption
The slow adoption of 5G mobile lines by individuals is a result of the significant investments required for 5G-supporting infrastructure. Some mobile operators are hesitant to rapidly expand their 5G network coverage, especially in rural or remote areas lacking basic connectivity. Implementing 5G in these regions without first solidifying technologies like 4G is an inefficient and unprofitable investment.
5G’s Potential in Latin America
Despite the challenges, 5G holds the potential to drive economic and social development in Latin America. Applications in telemedicine, distance education, and smart agriculture could greatly benefit underserved communities. Examples include immersive virtual education in urban and peri-urban areas using augmented reality for technical training in Colombia and Peru. However, the technology needed to achieve this immersion precedes 5G, and the issue isn’t technical but economic—the ability to afford these systems, their operation, software, connected devices, and maintenance.
Immediate Applications
Another often-cited example is the use of drones for crop monitoring and environmental surveillance, already implemented in Brazil and Argentina’s agroindustrial sector. While this is an immediate and profitable application for large-scale cultivation, it leaves out the vast majority of Latin American farmers who unfortunately live near poverty levels.
Realistic 5G Deployment
Attempting to justify the launch and expansion of 5G based on its mass-market benefits doesn’t hold up against reality. The grand promises of 5G as a digital transformation catalyst by cheapening other technologies haven’t materialized. The issue lies in the lack of understanding about which solutions can positively impact various sectors when adopted by large corporations.
Recommendations for Latin America
A promising initiative by the new regulatory body, the Agency for Digital Transformation and Telecommunications (ATDT), would be to analyze how digital technology use can increase the efficiency and productivity of various vertical sectors in the economy. This analysis should extend to all government departments, aiming to accelerate processes, increase transparency, and boost productivity.
Key Questions and Answers
- Q: What concrete solutions is the new regulatory body implementing in Mexico or other Latin American countries to benefit the majority of users?
A: The new regulatory body, ATDT, should focus on analyzing how digital technology use can increase efficiency and productivity across various sectors. This analysis should involve all government departments to accelerate processes, increase transparency, and boost productivity.
- Q: Couldn’t these solutions also be implemented using 4G?
A: While 5G holds potential, it’s crucial to adopt a realistic approach considering the economic and structural limitations of the country. Only through inclusive policies, affordable tariffs, device subsidies, and shared infrastructure can the digital divide be closed, ensuring that 5G benefits reach everyone.
