Latin America. By July 2021, the spectrum allocated for mobile telecommunications services in Latin America reached a figure of 406 MHz as a regional average from a sample of 18 countries.
That amount represents 20.7 percent of the International Telecommunication Union's (ITU) suggestion for 2020 and 31.2 percent of what is recommended for 2015, according to the 2021 edition of 5G Americas' "Analysis of ITU Spectrum Recommendations in Latin America" study.
"The delays in the allocation of additional radio spectrum for mobile services represent the permanence of a major obstacle to the launch and proper functioning of 5G networks. These networks require spectrum in low, medium and high bands for good performance. At this time, only Chile has allocated high or millimeter bands in the region. Under this context it is necessary to control expectations and understand that the adoption of 5G in Latin America will be gradual, initially focusing on the productive sectors of the economy and then, in about 4-6 years, begin to see its massification among mobile users in each market, "said José Otero, vice president for Latin America and the Caribbean of 5G Americas.
Of the markets analysed, half (9) licensed 400 MHz or more for mobile services; 4 more than 300 MHz and less than 400 MHz and the rest (5) less than 300 MHz. This distribution is equal to the measure in the previous edition of the report (2020), but the difference in capacity between the cases with more and less spectrum assigned widened from 398.4 MHz to 459.4 MHz, given that in one market (Chile) new capacity was allocated through the "5G tenders" of 2020 – 2021.
During 2020, several spectrum allocation processes were anticipated in Latin America through tenders that were delayed by the impact of the COVID-19 pandemic in the region: in Chile, "5G tenders" began at the end of 2020 and the tiebreaker rounds ended in 2021; in Brazil the "5G tender" could start in the second half of 2021 and in Mexico the same could happen with the IFT-10 Tender; calls for tenders for spectrum were published in Peru and the Dominican Republic (2.3 GHz and AWS in Peru; 700 MHz and 3.5 GHz in the Dominican Republic).
The report shows that there are announcements of new tenders or about the possibility of allocating more spectrum by 2021 – 2022 in most of the countries analyzed. In past years governments focused on announcements of offers of bands under 3 GHz, but with the development of 5G internationally it is observed that more national administrations include in their spectrum plans or new public offerings blocks of the 3.5 GHz and 26 GHz bands.
ITU's spectrum suggestions refer to spectrum estimates for international mobile telecommunications (IMT) published in the agency's ITU-R M.2078 and ITU-R M.2290-0 reports. The 5G Americas report shows that there are efforts to make new estimates for the coming years, adjusting to the context of IMT-2020 networks.
Highlights of 2020 - 2021
3.5 GHz band: more national administrations include it in their additional spectrum allocation plans. Chile allocated capacity and six more countries plan to license it between 2021 and 2022. Chile, Mexico, Peru and the Dominican Republic are cases in which mechanisms have been established to reorganize pre-existing allocations in the band to be allocated to IMT in the near future. In Mexico, the band's concessionaires received extensions, but are not authorized to use the band for mobile services.
Spectrum returns in Mexico: in this market, the amount of radio spectrum allocated for mobile services has been reduced due to the waivers of several concessions of this input by two mobile service operators. Between 2018 and 2021, approximately 84.7 MHz have been returned, equivalent to a contraction of 14.8 percent. The operators cited as justification for their decision the high costs existing in the market for the use of radio spectrum.
Time spectrum: Several countries established a temporary spectrum use regime during the COVID-19 pandemic. Panama and Peru stand out among examples of capacity assigned and extended as a measure in the face of the health emergency.
Drop in mobile penetration: Between 2019 and 2020 mobile penetration in the region fell from 109 to 107 subscriptions per 100 inhabitants. During the second quarter of 2020, disconnections were observed in several countries in the region due to the COVID-19 pandemic.
