Is Mexico creating a difficult environment for 5G investment?

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In 2019 it was announced that the deployment of the new 5G network would begin within Mexican territory, and this plan begins to be implemented gradually over a period of five years.

This deployment will begin in areas with a high population density such as Mexico City, Tijuana, Acatepec, Puebla, Guadalajara and Monterrey, and will later be extended to other regions of the country.

In turn, Mexicans have shown great interest in this new technology due to all the benefits it can offer them, such as faster web browsing speeds to quickly enter different sites of interest such as https://www.10bet .mx/casino/, among many others.

What is 5G?

It is a new mobile phone network, in this case the successor to 4G and 4G+, that is, the fourth generation. This new technology offers Internet connection speeds higher than 4G and with a lower response time (latency), it also allows you to connect several devices simultaneously.

5G seeks to improve the current connectivity of the country and provide great improvements to different sectors such as economic, industrial and health.

Benefits

The new generation in telecommunications is accompanied by great benefits for all Mexican users, some of which are:

5G in Mexico

Currently, the Aztec country already has 5G since the end of 2022 in the main cities and some surrounding regions. However, the results have not been very encouraging for the telephone companies.

In turn, users have expressed their discontent by pointing out that the service speeds are very similar to the 4G network, and that they have not been able to see any outstanding difference in this section.

Another important detail that they have mentioned is that the available offers of the service are not attractive at all, because the costs are too high and most of these plans cannot be afforded, except for a small minority.

It should be noted that to access this service you must enter the postpaid model, however, the majority of the Mexican market usually makes use of the prepaid model. There are 140 million registered mobile lines, 82.9% are prepaid lines, while 17.1% are postpaid lines.

All this leaves a large gap of approximately 23.3 million telephone lines with the possibility of having access to 5G. Due to this problem, users have stated that they prefer to stay with the 4G service rather than migrate to a service that they cannot afford, and that only offers speeds equal to their current service.

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Users with high expectations

Most users have high expectations about this new technology, however, the Aztec country is in a transition from 4G to 5G. They are still carrying out deployment work to have greater coverage within the territory, in addition to seeking an improvement for their speeds.

Due to the high costs of the service, many users have shown little interest in acquiring it; however, it is expected that by the end of 2023 there will be 16 million users subscribed to said service.

The operators have the task of solving this problem related to the costs of the service, otherwise, the adoption of the same will be increasingly slow in the coming years.

By resolving this problem, it is expected that by 2029 the majority of Mexicans will have adopted this service at a more profitable cost.