During the Telebrasil Panel 2022, Huawei discussed the three main challenges that Brazilian operators will have to face in order to monetize the investments made in the construction of 5G networks. The steps that will need to be taken before 5G becomes profitable can be identified from the experiences of countries where the connection is already well established.
According to Marcelo Motta, Director of Cybersecurity and Data Protection Latin America and an employee at Huawei, the first challenge that telecommunications companies will have to face concerns the number of users with access to the new technology. The 5G subscriber base must represent at least 20% of the total for it to be considered profitable.
The percentage of 20% subscriptions to 5G plans, in the countries where the acceptance of 5G was faster, took between 18 and 24 months to reach, according to information from Telesíntese. However, Motta considers that this period will be longer in Brazil, where the cost of a 5G cell phone is relatively higher. This scenario should also be negatively impacted by the economic crisis, as he points out:
Currently, only 45% of 5G handsets cost less than $450 worldwide. A cell phone that costs 150 dollars in China, arrives in Brazil for 300 dollars. Which means it will be sold for fifteen hundred reais. In this scenario of economic crisis, how many users will be able to buy 5G cell phones here?
Motta believes that this is an issue that will demand debates for the establishment of new public policies, such as encouraging the local manufacture of devices and cheaper imports.
Another challenge will be the data traffic generated from the new technology. Motta claims that “at least 30% of the operator’s total traffic must come from 5G”, a target that is already being reached by most operators that have launched 5G in recent years around the world.
However, the most difficult hurdle will be generating at least 50% of revenues from 5G technology, according to Motta. This goal should only be achieved this year by operators in South Korea – which were the first to launch 5G in 2019.
What is your opinion on the future of 5G in Brazil? Tell in the comments!