How 5G is paving the way for infrastructure transformation and growth in Latin America 

How 5G is paving the way for infrastructure transformation and growth in Latin America 

In this article, Padma Ravichander, CEO of Tecnotree, OYJ, explores the different ways 5G is transforming the infrastructure of Latin America now and in future. 

Latin American countries are embarking on the journey of commercial 5G services, marking significant strides towards a more connected and technologically empowered future. The number of 5G connections in Latin America is expected to expand gradually over the next few years – the rapid pace of adoption reflects high levels of consumer interest in 5G. There is also a positive outlook towards 5G among enterprises in Latin America, with organisations across all industries finding new technologies like 5G, private networks, massive IoT, Edge Computing and slicing, appealing to advance their Digital Transformation. Furthermore, the amount of interest in these technologies is consistent with advanced 5G markets such as the United States. 

The expansion of extensive mobile coverage in Argentina, Colombia, Mexico, Brazil, Chile and Peru could fuel their economies’ Digital Transformations, enabling precision agriculture and food processing, smart logistics, telehealth services, intelligent manufacturing and other valuable new capabilities.   

5G catalysing change in Latin America 

The technological advancements of 5G will hugely benefit Latin American consumers. Robotics and automation, virtual reality, Artificial Intelligence and Machine Learning are all aided by the technology. These developments have the potential to restructure economies and change people’s lives. A variety of predicted applications, including those in healthcare and financial services, have the potential to revolutionise industries, affect economic productivity and shape the labour markets. 

Latin America, as one of the world’s most urbanised regions, with over 80% of people living in cities, stands to benefit significantly from the development of 5G-enabled Smart Cities. Incorporating modern information and communication technology (ICT) into city planning, for example, could improve traffic flow in congested regions or the supply of public utilities. 

Latin America’s Smart City transformation with 5G 

As we understand it, 5G technology adoption can transform industries and infrastructure, including Smart Cities. 5G can connect several devices to a network, including sensors, lighting, and traffic signals, enhancing resource management, reducing traffic congestion, and improving public safety. 

Smart Cities are urban areas that use the latest technologies and IoT devices to improve the services, infrastructure, and quality of life for their residents. Smart City technology, in addition to increasing public engagement and quality of life, make cities more attractive as locations to live and work. Smart City solutions include intelligent grids, energy-efficient architecture and intelligent transportation systems. Smart Cities benefit from improved resource management, reduced traffic, increased energy efficiency and enhanced public safety. 

Due to the rapidly developing landscape of Latin America, the limitations of traditional city management are rising quickly. As urbanisation spreads throughout the area and the world, addressing issues such as population growth, resource management and environmental sustainability is critical. Many Latin American countries are embracing Smart Cities as a fresh approach to urban development and a possible road ahead in addressing these serious concerns. 

In Latin America, telco operators have vital capabilities in 5G networks, big data analytics and cloud computing, making them important contributors to the creation of Smart City infrastructures. Given the specific constraints of developing Smart Cities in this region, it is critical to investigate how operators may efficiently deliver network infrastructure and connectivity services. They must also facilitate the development of a collaborative ecosystem in which stakeholders interact, govern, and share the benefits. It is also critical to collaborate with ecosystem partners to develop intelligent applications. Addressing these issues will be essential for telecom operators involved in Smart City development in the 5G era. 

5G and IoT surge: Shaping the future of Latin America’s digital landscape 

According to reports by Statista, the number of mobile internet users in Latin America was expected to reach 383 million by 2022, representing more than half of the region’s population. Currently, 85% of Latin American responders believe that the introduction of 5G technology in the region will help bridge the digital gap by connecting a greater number of people. It’s expected that by 2025, Brazil, Mexico and Chile will account for approximately half of Latin America’s 5G mobile connections. 

Meanwhile, the number of Internet of Things (IoT) connections in Latin America is predicted to nearly triple by 2025, with Smart Homes accounting for the majority of new connections, topping 23 million by 2025. Latin America’s Smart Home revenue is estimated to hit US$4 billion by 2026. 

Although there have been advancements in digital infrastructure, the region still struggles with supply and demand issues that prevent it from undergoing a full digital revolution. In order to expand connectivity, countries in Latin America must invest in 5G networks, private networks, data centres, and fibre optics. The region has a lot of promise, but it needs to become more strategic in allocating its resources and building up its infrastructure to the point where it can support long-term economic growth. 

Large cities in Latin America have a significant chance to implement complete Smart City solutions thanks to 5G. Ignoring the potential of 5G is to miss a considerable opportunity. The infrastructure of a city is crucial to the advancement of its citizens because it promotes the value of digitally transformed utility services and the usage of e-government tools. This improves the capabilities of the people and expands the digital ecosystem. 

The immersive technologies that will elevate digital experiences are the foundation of the 5G opportunity in Latin America, and to be competitive in the rapidly evolving global economy, all enterprises must explore Digital Transformation driven by 5G technology. 

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