From companies like Tesla to the mining and port industries, they are driving the automation of their processes to optimize their operations and investments. To achieve this, they need to implement 5G technology, but this requires the allocation of new spectrum bands and increased infrastructure. However, this implies a considerable investment for operators, such as Telcel and AT&T.
Currently, companies like AT&T have opted to dispense with some spectrum bands in order to achieve operational efficiencies. For its part, Telefónica has decided to completely get rid of the radio spectrum due to the high costs involved, and instead has chosen to use the AT&T network.
According to data from the Federal Institute of Telecommunications (IFT), income from the use of the spectrum, not including the 700 MHz band used by Altán Redes, reached 18,272 million pesos at the end of 2022. This represents a decrease of 9.7% in compared to the 20,237 million pesos registered in 2019, the year in which Telefónica began to return its spectrum.
In this context, companies in the sector insist that reducing spectrum costs is key to the successful development of 5G technology in the country. Otherwise, there is a risk of facing possible delays in the implementation of this new network technology.
“If we don’t have improvements from the technological point of view that allow us to face these problems, it will be difficult for us to have the capacity to face what is coming,” said Jiménez Pons.
Javier Juárez Mojica, interim president of the IFT, has highlighted the importance of improving technologically to face the challenges of nearshoring. In this regard, he emphasized the need to reduce the cost of spectrum as a response to the new circumstances of nearshoring in various industries.
The interim president of the Federal Institute of Telecommunications (IFT) assured that nearshoring could contribute up to an additional 1.3% to the Gross Domestic Product (GDP) of Mexico during 2023 to 2030, but to get the most out of this situation, “we need infrastructure.” .
Mónica Aspe, CEO of AT&T Mexico, has pointed out that one of the main challenges in Mexico is to satisfy the demand of industries that seek to improve their supply chain. According to Aspe, achieving this would help Mexico attract more investment.
“We are more or less ready for nearshoring. We are no longer competing just for low wages, it is critical that they become living wages. However, we are still facing the reality that we also need to expand telecom networks to areas that are not yet covered “We still have a low penetration of services in these areas. In the midst of this double challenge, we are facing a wave of huge investments and the arrival of 5G for nearshoring,” Aspe said.