The future of 5G and 6G in Latin America: challenges and opportunities until 2035

Mobile connectivity has established itself as an essential pillar of economic development and global competitiveness. In Latin America, the implementation of 5G technology has generated high expectations, while highlighting significant challenges that the region must address in order to avoid falling behind in the technological race. As 5G approaches maturity, discussions about 6G have already begun, opening new opportunities alongside the need for strategic preparations.

The Current State of 5G in the Region: A Mixed Picture

The adoption of 5G in Latin America has been uneven, with the region lagging behind Europe and Asia, and even recently being surpassed by Africa in the number of networks deployed. This delay is largely attributed to costly and postponed spectrum auctions, unfavorable regulations, and low levels of investment.

However, there are clear leaders in the region. Brazil, Mexico, and Chile are considered pioneers, having started their implementation processes several years earlier, achieving coverage that even reaches small cities and some rural areas. In particular, Brazil stands out for its spectrum auction in 2021, which attracted significant investments and facilitated the deployment of Stand-Alone (SA) 5G networks, a key step for the future transition to 6G. Chile also made progress with its auction in 2021, benefiting crucial sectors in its digitalization process.

On the other hand, Colombia, Uruguay, and Argentina are in earlier stages, moving forward with the deployment of 5G, although they have yet to reach a considerable scale. In Colombia, for example, the auction took place at the end of 2023, and network activation began in February 2024. While these advancements are encouraging, the gap with the leading countries is noticeable.

Key Challenges for 5G Deployment

The massive implementation of 5G in Latin America faces significant challenges:

1. Technical and Human Challenges: It is essential to have specialized personnel for the installation and maintenance of the new networks. Experience in Chile highlighted the need to mobilize skilled talent among countries in the region to meet market demands.
2. Regulatory and Financial Barriers: Various regulations have slowed the process in multiple countries. In Colombia, the lack of a clear distinction between licenses for consumers (B2C) and businesses (B2B) limits integrators in offering specific solutions. Financially, the necessary investment is monumental; it is estimated that globally it will exceed $300 billion for equipment by 2027. For telecommunications companies in the region, with tighter margins, these figures can only be addressed through strategic partnerships.
3. The Digital Divide: There are concerns that 5G, instead of closing the digital divide, could widen it. The initial focus of the deployment has been in large cities, leaving a significant portion of the rural population with access to 4G or lower technologies. Without initiatives promoting inclusion, the difference between connected and disconnected areas will increase even further.
4. Spectrum Availability: Adequate allocation of radio spectrum is crucial. Administrations must make larger amounts of spectrum available to operators, especially in low (sub-1 GHz), mid (3-6 GHz), and millimeter (above 6 GHz) bands, which are essential for the full development of the technology. Additionally, the allocated spectrum must be “clean,” meaning free from interference from other services, a process that often proves slow and costly.

The Immense Opportunities of 5G

Despite the challenges, the transformative potential of 5G is undeniable and spans multiple productive sectors:

• Health, Education, and Entertainment: The low latency of 5G will revolutionize critical areas. In medicine, it will enable remote surgeries and enhance telemedicine in rural areas. In the entertainment industry, streaming video consumption and cloud gaming are expected to triple their traffic by 2027.
• Industry 4.0 and Agriculture: 5G is essential for Industry 4.0, facilitating automation, the Internet of Things (IoT), artificial intelligence, and robotics. In agriculture, the use of IoT sensors and remote machinery operation can increase productivity and optimize resource utilization.
• Smart Cities and Services: The technology will enable the development of smarter cities, improving traffic management, urban security through drones and connected patrols, as well as the efficiency of public services.

The economic projections are enormous; according to a study by OMDIA-NOKIA, the economic value of 5G in Latin America could reach $3.3 trillion by 2035.

Looking to the Future: The Arrival of 6G

While 5G continues to consolidate, the industry is already focusing on the next generation, 6G, which is projected to commercially launch around 2030. 6G promises to take connectivity to a new level, with speeds up to 100 times faster than 5G, ultra-low latency, and the integration of artificial intelligence into the network. This will enable futuristic applications such as holographic telepresence and collaborative robots.

However, the development of 6G in Latin America will largely depend on the success of 5G. The new generation will be built on the foundations of advanced 5G networks (5G Stand-Alone). Considering that most countries in the region are operating with 5G Non-Stand Alone (based on 4G infrastructure) or have not yet begun deployment, the current lag could repeat and worsen with the arrival of the next generation.

How Can Latin America Prepare?

To avoid missing out on the innovation train, the region requires a clear and coordinated strategy. Experts recommend the following:

1. Accelerate 5G Deployment: It is essential to expedite pending spectrum auctions and facilitate the installation of 5G infrastructure.
2. Modernize Regulatory Frameworks: Public policies that promote investment, simplify the procedures for infrastructure deployment, and encourage resource sharing among operators are needed.
3. Invest in Infrastructure and Talent: Fostering public-private collaboration for infrastructure modernization is vital, as well as developing training programs that prepare future labor talent.
4. Strengthen Regional Collaboration: Participating in international standardization alliances will allow the region to influence and stay updated on technological evolution.

The digital future of Latin America presents a promising landscape, but its success will depend on the decisions and actions taken today. Collaboration among governments, operators, and companies will be essential to create an ecosystem that not only implements technology but also turns it into a true catalyst for the economic and social development of its inhabitants.

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