Wednesday, 25 April 2018

South America to focus on maximising 4G ROI before switching focus to 5G

By Chris Kelly, Total Telecom
Sunday 15 April 18

A new report suggests that Latin America will wait for 5G technologies to be proven abroad before investing in rolling the technology out

Telecommunications firms in Latin America will concentrate their efforts on maximising their return on investment (ROI) in its 4G and LTE networks, before turning its attention to 5G, according to a new report. …

Telecommunications firms in Latin America will concentrate their efforts on maximising their return on investment (ROI) in its 4G and LTE networks, before turning its attention to 5G, according to a new report. 
The report suggests that Latin America could be among the last regions in the world to role out fifth generation mobile networks.  
“While most global operators are getting ready for 5G, actual 5G strategies are unlikely to be implemented in Latin America after they have been tested in developed markets,” read a section of the report, published by BMI research. 
The report states that regulators across the continent have recently intensified efforts to free up more spectrum, leading to the roll out of more 4G and LTE services.
“We believe this acceleration of spectrum release will continue throughout 2018 and 2019, allowing operators to get the most out of their LTE and LTE-Advanced networks, before the arrival of 5G. Making spectrum available is a very time-consuming process, often taking years upwards of two years to identify the right spectrum bands, free them for use, auction them in blocks, and distribute the licences to the auction winners,” the report continued. 
With 5G auctions not expected in South America for some time, network operators are expected to push hard for a ROI on their existing networks for at least the next 18 months. 
“In terms of technological uptake, we view the region as a follower on the global scale, so we believe operators will only look to adopt 5G strategies once they have been tested in developed markets,” the report concluded. 
 

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