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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

April 26, 2022

Will Mexican Firms Reap Returns From 5G Investments?

América Móvil said in February that it has launched 5G services in 18 cities in Mexico and hopes to expand the service to 120 cities across the country by the end of the year. // File Photo: Kabiur Rahman Riyad via Unsplash.com.

Q

  • In February, Mexican telecommunications company América Móvil launched 5G services in 18 cities, enabling about one million Mexicans to access a 5G network. The company also announced it would invest $1.8 billion to create the largest commercial 5G network in Latin America. Beyond infrastructure investments, Mexican telecoms firms also must coordinate with local, regional and federal government bodies in order to obtain licenses. What should Mexico’s government be doing to facilitate the deployment of 5G networks? Will 5G services find commercial success in Mexico? What needs to happen for the cities that have 5G deployed to become “smart cities” that offer new economic and social opportunities that the technology’s backers have touted?

A

Luis Rubio Barnetche and Octavio Lecona, partners at Holland & Knight LLP: “5G can use different radio frequencies, some of which provide better bandwidth, while others are good for geographic coverage. For cities to take advantage, small 5G cells will have to be built and installed closer to the customer using existing infrastructure, including street fixtures, stoplights, street light poles and bus stops. Deploying 5G networks will require close and timely coordination with local, state and federal authorities. In Mexico, there are 2,458 municipalities, 16 Mexico City alcaldías and 32 state governments. The requirements to apply for an authorization to deploy infrastructure and the response time change from one municipality or state government to another. At the federal level, there are several entities that manage public buildings and fixtures…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.
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