Nearshoring opens opportunities for enterprise 5G development – Ericsson

Swedish telecom equipment manufacturer Ericsson sees an opportunity for the development of 5G business networks in new nearshoring investments.

"In Latin America, and in particular in Mexico, I believe that this nearshoring process opens up a great opportunity for the development of networks in the industrial environment," Francisco Rey (in photo), Ericsson's enterprise business manager for the northern region of Latin America, told BNamericas.

"Right now we’re seeing the start of projects with the construction of new industrial plants or the expansion of ports to capture the greater industrial traffic due to the relocation of companies or replanning of global supply chains," he added.

The company has already started working on projects related to new industrial plants, mainly in the auto parts and automotive sector in Mexico.

Ericsson has also started talks with ports that are expanding to capture the increased freight traffic.

These conversations are initiated both directly and through mobile operators and integrators.

“We are beginning to see an incipient interest, which has not yet materialized into large projects,” said Rey.

These business cases require a substantial initial investment with long-term payback periods.

"It's not just about enabling 5G, but you have to create an ecosystem of devices, people, systems and processes around that," he said.

In Chile, telecom operator Entel became a distributor, reseller and integrator of Ericsson 5G equipment for companies. In Mexico, the firm has similar agreements with operators, but they are not public.

In addition to telcos, which provide experience in building networks, as well as the use of spectrum frequencies, Ericsson is looking for specialized integrators in different verticals to add to the ecosystem.

Ericsson has an ecosystem of four business partners in Mexico, including mobile operators and integrators.

The company is also looking to create similar alliances in Central America.

The names of the business partners, as well as the end customers, cannot be disclosed for reasons of confidentiality.

PORTS

Ericsson has already developed a 4G network for a container yard in Panama and is now working on the next step with 5G.

The port has a 4G solution deployed for asset monitoring and new use cases with 5G now being worked on. These include automation of processes, cranes and tools, as well as remote control of machinery.

“Another application that is on the table is the monitoring of sensitive cargo, such as refrigerated cargo. It is important to follow the cycle and know its conditions to avoid deterioration," according to Rey.

He said these types of applications are not as easy or economically viable with current 4G networks.

Studies shared by Ericsson indicate that advanced communications technology such as 5G can prevent 75% of thefts in ports and reduce the risk of accidents caused by human error in the movement of containers and merchandise by up to 42%.

In addition, the use of 5G networks allows ports to increase efficiency and competitiveness by optimizing loading and unloading times and reducing CO2 emissions.

Apart from Mexico and Panama, Ericsson sees opportunities in Costa Rica, the Dominican Republic and El Salvador, where the company has begun to notice some interest in developing enterprise wireless networks.