Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Monday, November 14, 2022

First steps of 5G in Guatemala: controversy over services and lack of spectrum

Tigo and Claro have launched their services over 4G networks. However, the sector assures that until the spectrum status in the AWS and 700 MHz bands is corrected, there will be no real progress with the new technology. Claro offers commercial packages for end users, while Tigo has not yet published them.

Fifth generation technology is already operating in Guatemala through operators Tigo and Claro. Although its arrival generated great expectations, the operators and the government have pointed out that it is a first step in a long road.

Tigo was the first to offer 5G connection when it launched its service at the Cayalá Experience Center, where it installed a mobile navigation section, virtual and augmented reality simulators and video game stations. The operator plans to locate two experience centers in Miraflores and Oakland Mall, in Guatemala City. It also assured that it continues to invest in infrastructure to extend the technology to other areas.

A week later, Claro informed that it would also offer 5G in 22 departments of the country and promised that by the end of the year it will double its coverage in an NSA model. However, there are specialists who pointed out that the launch has had more to do with an improvement in the 4G service than with the availability of a 5G network itself. Claro offers 5G connection through its spectral holdings and 4G-LTE infrastructure.

So far, neither company reported how many 5G subscriptions they have achieved. Claro offers 5G plans that include the use of social networks and music services under the Claro brand that start at US$ 38 per month and can reach US$ 89 per month with unlimited service. Tigo, meanwhile, does not yet offer 5G packages. No industrial use cases have been reported yet.

Spectrum. Guatemala is one of the countries in the region that lags behind in spectrum auctions. However, in September the Superintendency of Telecommunications announced that it had resumed the auction process for 48 bands.

Marco Antonio Baten, the Telecommunications Superintendent, announced that the 2.5 GHz and 2.6 GHz bands would be auctioned for between US$ 30 million and US$ 50 million.

But first, the Superintendence of Telecommunications will have to unblock the situation of the AWS band (1,700 MHz - 2,100 MHz) and the 700 MHz band, complicated by crossed lawsuits that have resulted in the impossibility of ordering their uses.

Raúl Solares, from the Guatemala chapter of the Internet Governance Forum, considers that a clear legal and regulatory framework is needed to move forward with these tenders and the more general spectrum management.

Benefits. Alexander Rojas, sales and business development manager of MediaTek, assured that there are several benefits with this deployment. First, it brings new options, from industrial applications to high reliability and low latency services.

Secondly, the executive expects 5G to bring huge growth in other technologies, such as metaverse solutions and development in relation to the Smart Edge segment and smart devices.

Thirdly, it will lead to a huge increase in new equipment sales. In Guatemala, only 20% of smartphones were ready for this technology at the end of the second quarter of the year, according to the GSMA's report on the introduction of mobile broadband in the Western Hemisphere.

The head of business intelligence at the Guatemalan Exporters Association, Jacobo Peters, said that the development of 5G will bring new growth opportunities for various industry sectors and the advancement of new products and services. He gave as an example the development of virtual games and assured that these companies are limited to competing in international tournaments or exporting their services due to the lack of bandwidth support.

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