In 2020, Latin America will have less than 20% of the mobile spectrum suggested by the ITU

A 5G Americas report highlights that only 7 of 18 markets assigned 400 MHz or more, equivalent to being above 20% of what the ITU suggests for 2020: Argentina, Brazil, Chile, Costa Rica, Mexico, Nicaragua and Peru.

The amount of spectrum for mobile services assigned by Latin American countries showed a regional average of 378.6 MHz in 2019, according to the latest edition of the study Analysis of ITU Spectrum Recommendations in Latin America prepared by 5G Americas. The amount is less than 20 percent of the capacity suggested by the International Telecommunication Union (ITU) for 2020, so it is important that governments make more radio spectrum available to the industry in the coming years.

With data collected as of August 15, 2019, the 5G Americas report found that the regional average of current mobile spectrum of 378.6 MHz represents just 19.3 percent of the ITU suggestion for 2020, which is 1,960 MHz for your high stage. It should be noted that the report only considers spectrum assigned for mobile services below 3 GHz.

In addition, the regional average of spectrum assigned for mobile networks in 2019 is just 4 percent higher than that measured for the same exercise in 2018, making it important that governments plan the delivery of more spectrum to accompany the digitalization of society, the study indicates.

The report concludes that a greater adoption of mobile services is projected by mass users, but also by governments and companies through the adoption of new technologies, such as the Internet of Things (IoT) applied to smart cities and Industry 4.0. This increase in demand will add pressure on mobile networks, which will require more spectrum to be able to respond to these connection needs.

Likewise, the study suggests that these new radio spectrum assignments that occur through auctions and bidding should be carried out within the framework of long and medium term spectrum plans, which are also visible by industry entities to allow adequate investment planning.

These spectrum roadmaps must contemplate the allocation of the resource in adequate times and with conditions that allow the expansion of connectivity in the countries. Regulators must take into account the state of the industry, the availability of technology environments and consider in the planning of new tenders the investments required by the industry not only to acquire spectrum licenses, but also for the deployment of infrastructure that allows the use of the resource.

According to the report, there is 7,092 MHz of potential spectrum capacity that can be assigned in the region in tenders and auctions scheduled for 2019-2020 (dates subject to change by each administration). These contests already contemplate bands that can lay the “foundations” of 5G in Latin America, such as 600 MHz, 2.5 GHz, 3.5 GHz, 26 GHz and 28 GHz.

The challenge of these new processes is to allocate capacity to maintain the development of 4G and 5G, but also to find new mechanisms that allow reducing the digital divide. Among the report's proposals are to consider special provisions for these new licenses, such as differentiated conditions for rural areas, among which lower spectrum costs for these areas can be analyzed or spectrum payments exchanged for investments in connectivity.