The fifth generation of networks is beginning to be a reality in the country with the gradual deployment of infrastructure carried out by telecommunications operators such as AT&T and Telcel ; however, its widespread development depends on several factors: its high cost for spectrum companies, inflation and the lack of a digital policy, which threaten to slow down the adoption of 5G in the country.
One of the great challenges that the industry faces to develop 5G are the barriers to the deployment of infrastructure, and it is that the new network will require up to 10 times more than the one that currently exists.
Jorge Fernando Negrete, president of Digital Policy Law, considers that telecommunications operators currently face a ‘nightmare’ to deploy fiber optics and base stations due to the lack of clarity and standardization of procedures and administrative permits to place their antennas and base stations . Several companies such as Megacable have denounced on various occasions that these elements, coupled with insecurity, delay and in some cases stop their coverage.
“Mexico is not friendly to deploy these devices because you have many levels of corruption and taxes in the States to deploy connectivity. Everyone wants to talk about smart cities, but the truth is that no state understands that hyperconnectivity is needed”, he points out.
Given this, the specialist considers that a 5G digital policy is required, both at the federal and state levels, that allows users to understand the practicality of the new technology in daily life, as well as to break down the barriers of infrastructure deployment.
Radio spectrum, the other obstacle
Mexico is positioned as one of the nations with the highest cost for the use and right of the radio spectrum worldwide .
Telcel and AT&T pay up to 89% more than the total price of the bands and the right of this resource, while in other countries such as Germany, Italy, Greece, the Netherlands and others from Continental Europe (such as Switzerland, Sweden, Austria and Denmark) They only cover 5% of the total cost to access the bands, according to The Ciu.
This means that companies have to spend between 22% and 30% of their annual income to cover this cost, and not only that: it has been a reason why the tenders carried out by the Federal Institute of Telecommunications remain deserted.
An example of this was the IFT-10 auction launched last year, where only three blocks of spectrum out of the 41 available received offers for 1,350.8 million pesos, which will be injected by AT&T and Telcel.
The telecommunications regulator has sought to modify the cost of the spectrum in the Federal Rights Law, but has not obtained positive results; however, through its 5G Committee, it has more recently sought to promote strategies aimed at facilitating the deployment and use cases of this new network.
Inflation
Joaquín Saldaña, director of strategy and marketing of Huawei Latin America, in a meeting with the press two weeks ago, warned that the economic situation will be a factor for the adoption of 5G, because users are now cautious with expenses and they can do this With technology.
Those who wish to migrate to the new generation in networks will need to invest in a device that is compatible with 5G, but renewing it is becoming more and more challenging for Mexican consumers: on the one hand, telephone equipment has become almost 9% more expensive so far of the year, according to data from the consulting firm The Ciu; In addition, the rise in the prices of dozens of products has reduced purchasing power.
Currently, high-end phones with 5G technology have a value that ranges from 7,600 pesos to 25,000 pesos, while the mid-range ones are priced from 4,100 pesos and up.
For this reason, Erick de la Cruz, an analyst at the Select consultancy, considers this one of the greatest challenges, since users will have to obtain equipment in an environment still marked by the shortage of chips, which causes increases in the cost of devices. , coupled with consumers seeking to give their current phones more life.
