As the deployment of 5G advances in the country, the telecommunications sector faces great challenges, which go beyond improving infrastructure or cash flow. In fact, bringing connectivity to the most remote areas continues to be the pending issue for both companies and the MinTic.
In dialogue with José F. Otero, vice president of Latin America and the Caribbean of 5G Americas, the expert analyzed how the telco panorama is going, and highlighted the points that must be considered to continue advancing in connectivity.
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How do you see the telecommunications sector in the country, taking into account that important moves have been made, such as the reorganization of WOM?
The telecommunications sector is in a transition phase where operators are facing investment requirements on different fronts. In addition, they are facing compliance with the infrastructure deployment requirements obtained in the 2019 and 2023 spectrum auctions. To this we must add that the negotiations for the spectrum frequencies that remain to be renewed must be completed to see the economic impact that these they will have in their finances.
We must not leave aside that they must continue with the expansion of their 5G networks in conjunction with actions that promote the migration of their users to devices that can connect to this technology. From an innovation perspective, operators are still trying to see what the appropriate business models are to drive 5G growth in the market profitably.
Do you think spectrum prices have affected cash flow?
Due to legal restrictions I cannot speak in detail about this topic.
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José Otero, vice president of Americas 5G. TIME / Cesar Melgarejo
How is Colombia compared to other countries in the region in terms of connectivity?
It all depends on the perspective from which you look. For example, Colombian authorities are aware of the country’s serious connectivity problems in its different variants. These include everything from bringing access to locations where it currently does not exist to educating people about the benefits of technology. However, the challenge is great and requires enormous amounts of investment. Furthermore, the issue of poverty in rural areas prevents people who live in areas where there are telecommunications services from accessing them simply because they cannot afford them.
It should be noted that according to figures from the International Telecommunications Union, affordability levels for mobile services in Colombia are below the world average and the parameters established by the Broadband Commission for Sustainable Development. These results serve to show that the issue of affordability in Colombia is not due to the existence of high rates to access telecommunications services, but rather something more structural and complex, the high levels of poverty, mostly in the rural population.
Now if the comparison is made between Colombia and the OECD member countries we see that the country occupies the last place in mobile Internet penetration and the last position in fixed Internet penetration regardless of the technology used.
What are the challenges that Colombia must continue to face to improve its connectivity, especially in rural areas?
The main challenge is for decision makers to understand that to increase connectivity, all important actors in the telecommunications ecosystem must be included in the conversation: Government, private sector, academia and civil society. This first step would serve to identify the urgent needs that the various locations in the country have. It is important that this call be inclusive.
In other words, connectivity is an issue that goes beyond the government authorities in charge of the technology and telecommunications sector and as such a holistic policy must be made that complements coverage with initiatives to reduce poverty, increase the accessibility of services, educating people and creating applications that increase the efficiency of government procedures.
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Connectivity
How do you see the arrival of 5G in Colombia, what are the challenges that must be overcome?
The arrival of 5G in Colombia is occurring in the same way that 3G and 4G arrived on the market. The Colombian mobile market participates in the third phase of launching new mobile technologies, it is not one of the pioneers at the regional level. This makes the device ecosystem more mature, an element that is observed with 5G phones under $600,000.
Now the challenges that 5G has are several, the first is the expansion of coverage of this network that requires a greater number of antennas than the mobile generations that preceded it. This implies an increase in investment. Then there is the challenge of adoption, whether by the corporate or mass sector. In other words, operators have to convince companies and users of the advantages of 5G and why it is important to migrate to this technology.
How do you see the fiber optic panorama in Colombia?
As in all Latin American countries, there is a great need to connect remote municipalities with fiber optics. In this sense, it is extremely important that fiber laying connects rural areas that are difficult to access. This is where fiber optics are needed, large urban centers such as Bogotá, Barranquilla, Medellín, Cali or Bucaramanga have several fiber optic providers, while most rural towns do not have a broadband provider that use this technology.
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What points should the MinTIC continue to consider in its agenda to improve connectivity?
The MinTIC must focus on bringing connectivity to those who currently lack it. This effort must be carried out by differentiating the coverage of services with their adoption. As long as service coverage continues to be equated with its adoption, little will be done by Colombia in terms of connectivity.
Likewise, the Government must begin to work with other national agencies to ensure that the country has a first-level basic infrastructure that facilitates the expansion of new technologies. Finally, it is necessary to make a diagnosis by location in order to offer practical solutions to existing problems.
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