While Mexico is just in the process of integrating a non-binding 5G Technical Committee for the planning of this new wireless generation, three Latin American countries have already put out to tender for radioelectric spectrum to deploy the technology and radiate its social and economic benefits.
The first was Chile in January 2021, the region’s digital leader, where three independent auctions were held to assign the 700 MHz, AWS and 3.5 GHz bands, in addition to a direct award without auction of the 26 GHz band. In total , the 5G tender raised $ 453 million for a country with almost 20 million inhabitants. Chile set out to be a digital hub by developing high-capacity services on mobile networks.
The WOM company won the 20 MHz blocks in the 700 MHz band and 30 MHz of the AWS band, for which it disbursed $ 82 million and $ 22.3 million, respectively. By obtaining this spectrum, WOM must comply with 90% coverage in the country.
For their part, operators Movistar, Entel and WOM were each awarded 50 MHz in the 3.5 GHz band for $ 163 million. For the 26 GHz band, the regulator awarded Claro, Entel and WOM 400 MHz to each provider, without an auction, because “the available bandwidth is enough to satisfy what is required by the applicants.”
The social benefits include connecting 366 localities with high-speed mobile Internet and 199 hospitals for the first time, as well as various airports, scientific centers of interest and seaports.
The lessons from Chile 5G were that the country does not want to lose digital leadership and, therefore, was the first to award and tender spectrum. The auction was not cheap, but the increase in spectrum bids was a result of the competitive environment. The four main operators obtained frequencies, so there were no surprises from new competitors who later left the spectrum due to lack of investment. The 5G auction will allow the coverage of 4G services to be further expanded, thereby helping to close the digital divide.
In October, the Dominican Republic assigned Claro and Altice 70 MHz in the 3.5 GHz band to each. The operators offered 53.1 and 20.6 million dollars, respectively. In total, the Dominican state will receive 73.7 million dollars for a population of almost 11 million inhabitants. The 700 MHz band was deserted.
The goal is that in five years there will not be a single blind spot in the geography of the country without connectivity. It also seeks economic development and benefits for all citizens, through plans that promote growth and competitiveness, the digital economy, the transformation of companies and the government, equal opportunities, promotion of innovation and free competition.
In November, Brazil concluded its 5G auction, so far the most ambitious in the region, bidding for the 700 MHz, 2.3 GHz, 3.5 GHz and 26 GHz bands. In addition, five new competitors will enter the Brazilian mobile market with business models individuals: Winity II, Brisanet, Consortium 5G Sul, Neko and Cloud2u.
The 5G auction in Brazil stood out for not having collection purposes, but it did have strong connectivity commitments. The economic value reached 9.15 billion dollars, but the National Treasury will only collect 876 million dollars (approximately, 15.76% of the total). The rest (84.23%) is the amount that must be invested in coverage commitments until 2029, in a country with more than 212 million inhabitants.
The main operators, Claro, TIM and Vivo, each acquired 100 MHz in the 3.5 GHz band, as well as blocks in the 2.3 GHz and 26 GHz bands. Regional operators such as Algar and Sercomtel also acquired frequencies in 2.3 GHz and 26 GHz .
The investment and connectivity commitments vary in each case, but include connecting federal highways, zones without 4G service, deployment of fiber optic networks for data transport, installation of radio bases, connecting public schools, participating in the Amazon connectivity program and on the government communication network.
The three tenders have points in common: they did not have collection purposes, but some were more onerous than others: Chile in the initial payment of frequencies and Brazil in investment and connectivity commitments. They all have specific social and economic objectives: the Dominican Republic to connect the entire country with a focus on schools. Chile, expand coverage and connect localities without 4G service, hospitals and create a regional digital Hud. Brazil, extend 4G connectivity, connect roads and schools, develop the Internet of Things and its agribusiness.
Another very relevant coincidence, which allowed the advancement and realization of the 5G auctions in the three countries, was the involvement and leadership at the highest executive level. Chilean President Sebastián Piñera declared during the announcement of the tender that “in Chile we are making progress with the implementation of 5G networks, which due to their greater capacity, speed and security will make possible the full deployment of the digital society, the Internet of Things, homes, workplaces and smart cities ”.
President Luis Abinader, of the Dominican Republic, explained during the international announcement that “the fifth generation of mobile networks will represent an impact on all sectors of the population and will make our nation more competitive, more dynamic and better connected.”
Jair Bolsonaro, president of Brazil, mentioned during the start of the tender that “with 5G technology, Brazilians will have the opportunity to show the real Brazil. It is not only the indigenous people, there are almost 10,000 small towns that do not have Internet and will have it ”.
The other countries heading towards 5G are Colombia and Mexico. In the first, the sector is politically convulsed, but there is a clear intention and planning to announce the 5G auction soon. In Mexico, the president has not had a single pronouncement on the matter, despite the social and economic benefits that the 5G tender would bring, not to mention that we are commercial partners of the United States, one of the countries that seeks and fights for global 5G leadership .
Twitter: @beltmondi
President of the Mexican Association for the Right to Information (Amedi)
In communication
Media and telecommunications analyst and academic at UNAM. Study the media, new technologies, telecommunications, political communication and journalism. He is the author of the book The media presidentialism. Media and power during the government of Vicente Fox.
Reference-www.eleconomista.com.mx