5G Deployment: Ready, configured, and started
The rollout of 5G in Mexico is particularly hampered by strict regulations on annual rights to the use of communications frequencies. Annual royalty payments have generally risen above national inflation, resulting in low levels of foreign direct investment and telecommunications sector revenues being flat or declining. Without reform and current trends continue, carrier costs will continue to rise, limiting their ability and incentive to invest in new technology deployments. In this context, the Federal Telecommunications Research Institute has announced in 2023 the start of a public consultation on the auction of several frequency bands across the spectrum that need to be allocated to meet the desired speeds, coverage and latency offered by 5G. Approved in January. Therefore, the development of the necessary infrastructure will primarily depend on the active activities of carriers and key industry players.
Familiar companies at the forefront of 5G technology in Mexico
As of June 2023, there are 28 5G networks deployed in Latin America and the Caribbean, including three networks owned by Mexico’s Telcel, Movistar, and AT&T. Telcel, owned by América Móvil, is not only a revenue powerhouse but also Mexico’s most valuable telecommunications brand. Telcel is topped by AT&T and Telefonica, which operates in Mexico under his Movistar name. Telcel launched the first commercial 5G mobile service in the country in February 2021. By the end of 2022, the company’s 5G network covered about 100 cities in Mexico, and AT&T and his Movistar also offered commercial 5G services, but with a more limited footprint. . Operators are now shifting their focus to developing use cases for 5G. AT&T Mexico has established a 5G Innovation Lab to test new applications in 2022, while Mexico’s telecommunications regulator has established a dedicated committee to guide the development of industrial use cases for 5G. announced the establishment of The economic contribution of 5G in Mexico is expected to reach US$3 billion in 2025 and increase to US$13 billion by 2030.
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