4G surpasses 3G in Latin America, becoming mainstream technology.
Expanding 4G investment will serve as a stepping stone for building 5G networks.

The 5G era is dawning as South Korea launches the world's first commercial 5G service. It's important to note that the arrival of the 5G era doesn't mean previous-generation technologies will be obsolete.

2G, 3G, and LTE (4G) will continue to support 5G and play their roles. In some regions, they will exert even greater influence than 5G or serve as a springboard for 5G network deployment. Latin America is one such region.
4G is expected to surpass 3G as the mainstream technology in Latin America by the end of 2018, according to a new GSMA report released at the Mobile 360 Series - Latin America in Buenos Aires, Argentina, on December 6.

The report, ' The Mobile Economy: Latin America and the Caribbean 2018 ', forecasts that 4G networks will account for the largest share (38%) of connections in the region by the end of this year. This is a significant increase from 8% three years ago.

As 4G reaches critical mass in terms of coverage (82% of the population), carriers will invest heavily in network updates to support the surge in smartphone and data usage, paving the way for the 5G era.

4G is expected to account for two-thirds of all connections by 2025, with 5G networks expected to be deployed primarily in key markets such as Brazil and Mexico by then, accounting for 8% of all connections in the region.

“Consumers across Latin America are rapidly migrating to 4G services, driven by video viewing and social media usage, and this traffic growth is necessitating significant investment in networks to support new and existing digital services,” said Michael O’Hara, chief marketing officer, GSMA.

“Mobile operators in the region are expected to invest approximately $50 billion in network upgrades from 2018 to 2020 ahead of the move to 5G,” it said.


An active pricing policy is needed to bridge the digital divide.
Currently, more than two-thirds of the region's population is connected to mobile networks. By mid-2018, there were 442 million mobile subscribers across the Latin American region (68% of the total population), a figure projected to increase to 517 million (74%) by 2025.
There is a significant difference in coverage rates between countries, with countries such as Argentina, Chile, and Uruguay nearing nationwide coverage, while countries such as Guatemala, Honduras, and Nicaragua have not.

“Currently, half the region’s population is connected to the mobile internet, and that number is projected to rise to 65% by 2025, but there is still much work to be done to ensure that millions of citizens are digitally included and can access the social and economic benefits that online presence offers,” O’Hara said.

He added that it was “critical for the mobile industry to work with governments and potential stakeholders to address barriers to mobile internet adoption, such as excessive taxes and fees that negatively impact affordability.”


Mobile technologies and services that contribute significantly to the local economy
Mobile technology and services contributed 5% of Latin America's total GDP last year, adding $280 billion in economic value. This figure is projected to increase to $330 billion (5.2% of GDP) by 2022.

The region's mobile ecosystem also directly and indirectly supported approximately 1.6 million jobs in 2017 and contributed significantly to public sector funding, including approximately $36 billion in general taxes and sectoral levies in 2017.


Mobile Drives Innovation and Generates Public Benefits
Latin America's mobile ecosystem is fueling a wave of innovation across the region, driven by a growing number of new technologies, services, and use cases.

For example, mobile operators contribute significantly to the IoT market. The number of IoT connections in the region is expected to triple from 2017 to 2025, reaching 1.3 billion, transforming both consumer and industrial sectors.

The report cites examples of how mobile-based innovations have had a positive impact, including contributing to the achievement of the United Nations' Sustainable Development Goals (SDGs).

Claro has partnered with Córdoba, Argentina, to develop an IoT solution that will connect machines and farm animals via sensors to enable traceability of livestock products.

In La Guajira, Colombia, Telefoìnica and the UN Food and Agriculture Organization (FAO) are using mobile big data to measure how climate change is affecting internal displacement and the movement of people.

This initiative, part of the GSMA's Big Data for Social Good (BD4SG) programme, aims to provide countries and institutions with the insights they need to make informed decisions and implement targeted policy interventions.