The challenges on the way to 5G

Telecoms industry representatives agree the path toward 5G is rocky but dialogue will help.

At a webinar organized by think tank Convercom on Tuesday, Daniel Martello, Ericsson's regional strategic network evolution manager, said 5G will provide opportunities not just for mobile operators but also transform cities, healthcare, agribusiness and general industry.

Nokia's customer network solutions manager, Guillermo Wichmann, said opportunities reside in everything related to mission critical services, mining and agribusiness. "Today each machine in agriculture generates 1Gb per day, but they are not connected and you have to go find the information with a pendrive."

By 2025, 52% of 5G revenue will come from the B2B segment and 48% from the consumer segment, according to Cisco.

SPECTRUM

5G will require spectrum in low, medium and high frequency bands. The availability of this resource at a reasonable price is a concern of operators.

Chile already held a 5G spectrum tender. And the head of regulator Subtel, Pamela Gidi, said at the webinar that a comprehensive approach is needed, covering fiber optics and infrastructure deployment, cybersecurity and collaboration with research institutions to develop 5G use cases.

Mercedes Aramendía, who is leading Uruguay's regulator Ursec, said the country was working on a 3.5GHz auction and plans to launch the tender this year. Ursec is mapping the country to discern where more coverage is needed.

The head of Argentina’s regulator Enacom, Claudio Ambrosini, said his government was working on a spectrum plan to provide certainty to the industry.

And at the 5G Latin America Digital Symposium, Colombia’s connectivity undersecretary Walid David said spectrum tenders should be compartmentalized so investments go directly to targeted localities. Colombia also bets on infrastructure sharing and public-private partnerships for network building.

The director of the Dominican Republic’s Indotel, Julissa Cruz, said the tender for 250MHz of spectrum in the 700MHz and 3.5MHz bands is underway. The process includes benefits for winners and spectrum price may be paid in installments.

INFRASTRUCTURE

As 5G will demand more infrastructure, barriers need to be reduced. Maryleana Méndez, executive director of telecoms association Asiet, said at the symposium it could take up to 12 months to obtain infrastructure permits in some countries, making it impossible to achieve the necessary antenna density.

In Chile, Subtel forged an agreement with ministries under which they will offer over 4,000 of their buildings for antennas.

At the Convercom webinar, Alejandro Quiroga López, regulatory and institutional affairs head of Claro Argentina, Uruguay and Paraguay, said cities should coordinate to enable faster 5G roll-out.

“Each generation is deploying faster than the last. We are going to need ordinances that release this deployment,” added Hernan Verdaguer, Telecom Argentina’s director of regulatory affairs. He highlighted that some Argentine provinces tax mobile services as luxury goods, which could reach over 4% of gross income.

Aramendía said infrastructure and tower sharing serves to make deployment more efficient.

The legal and public affairs manager of American Tower, Patricio Colls, said “it is necessary to have robust networks for the expansion of 5G.” American Tower offers towers, distributed antenna systems, and fiber optics. In Argentina, it also has the first neutral fiber-to-the-home network in Buenos Aires’ northern metropolitan area.

REGULATION IN ARGENTINA

Considering recent regulations, Ambrosini advocated a public-private dialogue. "Let's work together to improve connectivity. We owe ourselves the task of working together to achieve a better future," he said at the Convercom webinar.

Quiroga López demanded an “adequate negotiation framework” and to adapt 5G plans to Argentina’s per capita GDP and macroeconomic reality.

Movistar’s director of communication and institutional relations, Alejandro Lastra, added that Argentina has "to put the house in order first."

Lastra said from 2014 to 2021 three major regulatory changes occurred and fundamentally altered the rules. "This makes planning very difficult," he said. "It is very complex to think that we can advance in 5G if we still cannot decipher how the industry's income accompanies inflation and the exchange rate." 

Meanwhile, Verdaguer promoted modern and stable legislation through a public-private agenda.

The need for a legal framework with rules that allow long-term investment was also mentioned by José Otero, director of 5G Americas.