A study revealed that only four markets have allocated more than 30% of the spectrum suggested by the ITU
The lack of sufficient spectrum for the development of mobile services represents negative consequences for Latin American users and also limits the growth potential of the telecom industry in the region, according to a recent study by 5G Americas.
According to the study, none of the countries in Latin America have reached 50% of the 1300 MHz suggested by the International Telecommunications Union (ITU) for 2015 in its ITU-R M.2078 report. This report establishes the spectrum allocation requirements for IMT-2000 and IMT-Advanced technologies, commonly referred to as 3G and 4G, to work efficiently.
5G Americas’ white paper revealed that only four countries in the region have allocated more than 30% of the ITU’s suggestion for 2015: Argentina (31%), Brazil (41.7%), Chile (35.8%) and Nicaragua (32.3%), with all four having allocated the 700 MHz band. Furthermore, three countries stand below the 20% spectrum target suggested: El Salvador (16%), Guatemala (16.2%) and Panama (16.9%). The remaining Latin American countries lie below the 30% compliance level but more than 20%.
“The lack of sufficient spectrum for the development of mobile services has a negative impact on both consumers, who are deprived of innovative services with optimum performance, and the telecommunications industry, whose growth potential is limited,” 5G Americas Director for Latin America and the Caribbean José Otero said. “Spectrum frequencies are necessary for technological development to materialize in the way of services that benefit society by meeting the growing need for broadband, a key element in the economic progress of communities. This document reveals that more internationally harmonized spectrum is needed throughout the region.”
5G Americas also said it is key for Latin American countries to work jointly toward a harmonized spectrum plan for the region aimed at benefiting from economies of scale, encompassing the entire ecosystem of chipsets, devices and infrastructure, as well as LTE mobile broadband roaming.
“Latin American regulators must continue to be diligent in understanding the importance for their citizens of making more spectrum available in the market with the purpose of promoting economic growth and global connectivity in their countries,” Otero added.
According to the study, most regulatory agencies in Latin America have expressed their interest in auctioning spectrum on 700 MHz band in the near future and at least eight countries have already made allocations in the first quarter of 2016.
The white paper showed that at the end of 2015, the 850MH band was the only common spectrum offered throughout Latin American markets. Likewise, by that date, fourteen markets had allocated AWS 1.7/2.1 GHz spectrum (1710-1755 MHz coupled with 2110-2155 MHz) and at least five markets had completed the 2.5GHz range (2500 MHz at 2690 MHz) for the provision of mobile services.
5G Americas also highlighted that regulators in Latin America should understand the importance of making more radio spectrum available for mobile services in the market, as this will lead to a boost in economic growth and connectivity in the countries across the region. “Several studies have demonstrated that investment in mobile broadband has a positive impact on GDP. Mobile broadband is capable of bridging the digital divide and offering new development opportunities in areas such as education, health, government and transport. This is especially important in rural and remote areas, where fixed telecommunication operator infrastructure is rare, making wireless technology the only alternative for offering broadband services to the population and working toward reducing the digital divide,” 5G Americas’ white paper said.
