EDITOR ’ S QUESTION
MIGUEL CALDERÓN ,
DIRECTOR OF REGULATORY STRATEGY AND PUBLIC POLICY POSITIONING AT
TELEFÓNICA HISPAM
In the near future , 5G networks will be the basis for a radical transformation in production processes and the development of modern economies , having an impact far greater than that of previous generations of mobile telephony . In this sense , both technology standards and use cases are still in development stages and we hope soon that there will be consolidated business models that will allow us to estimate their real impact .
The decision to implement any large-scale technological renovation , such as 5G , requires a comprehensive and sustained analysis . In Latin America , the necessary conditions are required to make a successful 5G deployment as has occurred in the European market , the United States or Asia Pacific .
Another problem facing the region is not so much on the supply side as on the demand side , where our lower level of per capita income translates into fewer resources for investment . In this scenario , the expansion of the coverage of existing networks , the reduction of people and households without connection and the digitization of the economy should be the main shortterm goals , which can be adequately met with the existing technology .
Also on the demand side , another differential element is the base of mobile terminals used in our markets . At an aggregate level , the terminals used in our countries
Regarding mobile service , one of the main deficits in the region is the level of coverage reached by LTE networks and consequently , in the levels of penetration of the service , considered as single connected users and the level of use or consumption that is made of its services . These lower levels of development of telecommunications infrastructure in the region are due , among others , to the high cost of spectrum and the difficulty of obtaining permits to install infrastructure .
This connectivity problem is one of the priorities to be faced in our countries , since the Internet connection constitutes in these times , an essential element for daily life , communications , business and industrial processes . This connectivity gap can be satisfied economically and efficiently as incentives are given for the industry to maintain the expansion processes of its LTE networks , which take advantage of the core of the existing networks to provide connectivity to these isolated areas .
The decision to implement any largescale technological renovation , such as 5G , requires a comprehensive and sustained analysis .
classified as low cost (‘ Low Cost ’, ‘ Entry ’ or ‘ Mid Cost ’, up to US $ 190 ) make up 74 % of the total . In Europe and the United States , these devices represent 40 % and 29 % respectively , with premium terminals prevailing ( over US $ 300 ).
It is also required to assign the spectrum and for it to be timely and efficient , it requires availability of continuous spectrum , clear , sufficient and adjusted to our economic reality ; in addition , to mitigate coverage and access deficits , since 5G networks depend on a sufficiently extended LTE network .
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