THE 5G NETWORK is considered a catalyst of the economy, as it will detonate industry 4.0; However, for this to occur it requires investment and new playersbut, contrary to what is expected, there are none.
It happens that the acquisition of Radioelectric spectrum has experienced a brutal increase in its cost in Latin America, rising 42% between 2010 and 2022, according to reports from the GSMA, chaired by John Hoffman.
This increase in price contrasts sharply with the 42% decline in revenues of the telephone and mobile Internet companies in the same period.
This phenomenon presents a notable challenge for the telecommunications in the region, with implications both in the quality of the service and in the long-term sustainability of the sector.
In the case of Mexicothe costs due to the use of the spectrum are still even higher. The GSMA highlights that the country rates the value of the frequencies a 60% above averagewhich places considerable financial pressure on operators.
AT&Tby Mónica Aspe, and Telcelby Daniel Hajj, for example, allocate 20.4% and 7% of their income, respectively, to paying for the use of the spectrum.
This situation led to Movistardirected by Camilo Aya, to return its frequencies to the State due to high costs.
High spectrum prices not only impact companies financially, but also slow down the deployment of new networks and technologies, such as fifth generation (5G).
It is therefore necessary to be creative to overcome these challenges and ensure that governments seek solutions to facilitate the expansion of these crucial networks.
An example is Brazil, where the government has carried out a spectrum auction with a non-collective approach.
Instead of maximizing short-term income, the commitment to investment in infrastructure has been prioritized, with an agreement that foresees investments of up to 8.5 billion dollars and this approach could be replicated in other countries in the region.
An open dialogue between the government and the private sector must be prioritized, since, although companies are willing to invest in more spectrum, current prices are not viable.
The spectrum allocation strategy must be rethought to ensure sustainable growth and achieve the country’s digital potential.
The current situation presents an opportunity for governments and companies to collaborate in creating a more favorable framework for the development of telecommunications.
Reducing spectrum costs and implementing policies that encourage long-term investment can be key to improving coverage, quality of service and, ultimately, closing the digital divide in Latin America.
CLAUDIA SHEINBAUMVIRTUAL Chairwoman elected from Mexico, met with Sergio Méndez, general director of BlackRock Mexico, which reflects a commitment of this investment fund to increase its projects in the country. Sheinbaum has also spoken with leaders of the World Bank, the International Monetary Fund and the OECD to promote international cooperation. These meetings underline the intention of her administration to send signals that give certainty and confidence to large external capital, nervous about the power that Morena concentrated in Congress.
MEXICO PACIFIC, ANNOUNCED an additional investment of 15 billion dollars in Liquefied Natural Gas (LNG) projects in northern Mexico. This figure, added to the 15 billion already committed to Saguaro Energía and the Sierra Madre gas pipeline, brings the investment of the company led by Sarah Bairstow to a total of 30 billion dollars in less than five years. This amount not only represents the largest investment by a single investor in Mexico, but is also equivalent to 82% of the foreign direct investment received in 2023. Furthermore, this development is projected to increase the national GDP by 0.25% annually, underscoring its potential positive economic impact.
IN APRIL 2024, the government of Andrés Manuel López Obrador allocated 84 thousand 614.3 million pesos to the service of the debt, an increase of 18.6% compared to the same month of the previous year. According to the Public Finance and Public Debt Report of the Ministry of Finance, in the first four months of the year, the financial cost of the debt reached 344 thousand 194.6 million pesos, a real growth of 0.8%. However, payments for interest, commissions and expenses were 281,705.2 million pesos from January to April, 1.1% less than in 2023.
THE FEDERAL COMMISSION of Electricity (CFE) won litigation in Texas against Whitewater Midstream, avoiding paying extra costs for the supply of natural gas during the winter storm Uri in 2021. This judicial victory represents significant savings for Manuel Bartlett’s team and the Mexican State, according to anonymous sources. In the context that 40% of the electricity generated by the CFE depends on natural gas, of which 80% is imported from the United States, the ruling is particularly relevant.
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