5G in Latin America: Progress and Unfulfilled Promises

While the world is moving steadily toward consolidating fifth-generation mobile communications (5G) as critical infrastructure for connectivity, Latin America has yet to fully embrace this technological wave.

Europe and Asia lead the deployment with more than 190 active networks combined, the result of effective public policies, strategic investments, and regulatory frameworks that drive innovation, according to information from 5G Americas.

Even Africa (56 networks), traditionally a laggard in telecommunications, has surpassed our region in the number of active networks. This has been achieved through flexible regulations, temporary spectrum transfers, and foreign financing for infrastructure deployment.

Latin America, with 50 networks, is in fourth place globally, behind even the Middle East (26) and North America (18).

Structural obstacles. This lag is not explained by a lack of demand, but by institutional decisions. In several Latin American countries, bidding processes have been postponed indefinitely or have presented disproportionate costs, which has discouraged operators' interest and delayed the deployment of the technology. Brazil and Chile are notable exceptions: the former triggered the development of 5G networks after its 2021 bidding process, while the latter has maintained a sustained policy of promoting digitalization through strategic spectrum allocation.

Regional lessons. Other Latin American countries have begun to take firm steps. Costa Rica and Panama, which at the beginning of 2024 were among the furthest behind, launched successful bidding processes that same year.

Costa Rica awarded spectrum to seven operators, including mid-band (1-6 GHz) and millimeter-band (26 GHz), while Panama released resources in the L-band (1427-1518 MHz) and other key bands for initial commercial deployments. These actions demonstrate that the delay is a consequence of a lack of strategic sectoral decisions.

Mexico: lagging in the regional comparison. However, Mexico represents the most critical case. Despite having strategic economic sectors that would greatly benefit from 5G networks available throughout the country—such as the automotive industry, manufacturing corridors, and multimodal logistics—the country operates with spectrum salvaged from the secondary market or underutilized. Key bands, such as 3.5 GHz, remain occupied by inherited concessions or pending reorganization, while other mid-bands, such as 2.5 and 3.45 GHz, are only partially utilized.

The lack of a formal bidding process, high spectrum usage costs, and unfavorable regulatory obligations explain why the process planned for 2024 was canceled due to a lack of participants.

Pseudo5G: No real capabilities. Adding to this situation is an operating model that produces "pseudo5G" networks, anchored in 4G architecture, without the capacity to offer speeds greater than gigabits per second, low latency, or massive device connectivity.

In contrast, other countries have understood that the deployment of this technology is not an end in itself, but a means to transform industries. South Korea has designed its networks for mass consumer experiences; Germany has focused them on Industry 4.0; and Brazil has prioritized applications in precision agriculture and automation.

A national roadmap is necessary. Mexico needs a clear, immutable roadmap geared toward productive development. This entails defining a precise auction schedule, establishing realistic spectrum prices, ensuring regulatory certainty, and promoting schemes that allow for the deployment of private networks in strategic sectors. The discussion should not focus on whether the country will adopt 5G, but rather when and under what conditions. Only with a long-term vision, political will, and clear rules will it be possible to transform the potential of 5G into tangible benefits for the Mexican economy and society.