The Future of 5G Internet in Mexico 2022
Developing a commercial 5G network in Mexico represents a massive opportunity for development and digitization.
In fact, according to the Inter-American Institute for Cooperation in Agriculture and Microsoft, over one-third of the Latin American population still lacks access to the internet. The country will launch its first commercial 5G mobile network despite these problems in 2022.
5G Network already exists in Mexico
While the unlimited 5g wireless access isn't yet a reality in Mexico, there are signs of it emerging there. A recent report from IDC found that the first year of 5G operations in Mexico was valued at USD 4,4 million. In fact, a 5G network is already being deployed in other countries such as Germany, South Korea, and Australia. If the same pattern can be seen in Mexico, the network will eventually be available to the entire country.
With 118 years of experience in Mexico, Ericsson has two factories and 2,600 employees. In fact, its operations center is based in Mexico. The company believes that its 5G network is ideally suited for new use cases, including bridging the digital divide in the region. With its speed and capacity, 5G promises to be more convenient than 4G, allowing machines to run without human intervention. But deploying this technology is not as simple as laying down fiber.
Impact of IoT on 5G adoption
Suppliers and manufacturers of wireless technology are investing in droves in the Wireless Internet of Things (IoT) and the next-generation 5G networks they will bring. In addition, the rapid rise of IoT use in 2019 is likely to cause the capabilities of standard mobile networks in urban areas to improve significantly. In addition to faster speeds and higher data rates, 5G networks promise enhanced coverage, ultra-low latency, and greater capacity. As a result, 5G is considered an essential enabler for the future of wireless technology.
IoT devices are already commonplace in our daily lives, but their use will continue to grow in size, speed, and performance with the advent of 5G networks. These devices can help minimize environmental impact, heavy control machinery remotely, conducts remote surgery, and transfer patient data. New surgical technologies and less invasive fit together to access critical medical information better and give doctors, nurses, and specialists more tools to track patients' vitals and health.
Impact of spectrum auction on 5G adoption in Mexico
In the wake of Mexico's recent announcement that it is preparing for a 5G spectrum auction, several companies have been vying to bid on the blocks. AT&T Mexico recently announced that it will roll out a 5G network in Mexico in December 2021. The company said it would use spectrum in the 2.5GHz band and has already connected 50 mobile devices to its network. The network will initially cover the Cuauhtemoc and Napoles districts.
While there are pros and cons to spectrum auctions, they have the potential to limit the number of mobile connections in a country. Even though spectrum auctions are not ideal, they remain a better option than administrative processes. While competitive auctions still offer the best value, poorly designed spectrum auctions can negatively affect winning bidders' balance sheets. Broadband users are typically left with lower coverage and less service quality than those provided by networks with higher prices. Governments must ensure a sufficient spectrum supply and optimal auction process design.
Impact of IoT on 5G adoption in Mexico
There are numerous benefits of deploying 5G networks in Mexico. The country has a large manufacturing sector and is poised to take advantage of the benefits of super-fast speeds. The adoption of 5G networks in Mexico significantly boosts the Latin American economy.
Ericsson has been operating in the country for 118 years and has 2,600 employees.
It also operates two factories in Mexico and has operations headquarters there.
Ericsson's 5G network characteristics are ideal for new use cases and can help bridge the digital divide between the country and regions.
There are already numerous examples of innovative IoT applications in the region. For example, an agreement between Vivo, Raizen, and EsalqTec with Ericsson will promote IoT adoption in the agribusiness sector. The agreement is expected to increase agribusiness productivity. The companies will utilize the 450MHz band for 4G/LTE in the Piracicaba area.