5G rollout stalls due to lack of antennas

 The fifth generation of mobile telecommunications (5G) marked its two-year anniversary last weekend, following the initial service activation in Brasília. The signal was transmitted on the 3.5 gigahertz (GHz) band, in the standalone 5G standard—known as “pure” 5G for meeting stricter network requirements, independent of 2G, 3G, and 4G infrastructures. 

 The results achieved in these two years are being celebrated by members of the National Telecommunications Agency (ANATEL) and phone carriers. This is because all obligations from the license auction, held in November 2021, are being met ahead of schedule. 

 Vinicius Caram, a superintendent and one of the experts who designed the auction, explained that the competition between the three largest companies (América Móvil’s Claro, Telecom Italia’s TIM, and Telefónica’s Vivo) to lead in implementation, combined with the strategy of activating service by groups of nearby cities, propelled the network expansion in the first two years. “The 5G antenna installation targets are being met with increasing anticipation, currently from a year and a half to two years ahead of schedule,” said the expert. 

 However, the high cost of smartphones, considered a barrier for a large portion of the population, and the government’s and operators’ promises of extensive signal coverage contribute to users’ perception that the new technology is not yet fully accessible. 

 Paulo Cesar Teixeira, president of Claro’s consumer unit, has argued that the starting price for 5G-compatible smartphones should not exceed $100. On the other hand, the industry in Brazil claims it is already operating on tight margins, leaving no room for price cuts. The Brazilian Electrical and Electronics Industry Association (ABINEE) complains about the high tax burden on devices, nearly 40%. The association also warns about the influx of non-certified devices by ANATEL into the Brazilian market last year, which already account for 25% of sales, primarily online. 

 Despite the rapid 5G network expansion, starting in capitals and spreading from metropolitan areas, users often find themselves frustrated when they cannot access the extensive coverage touted by the sector. According to ANATEL, the technology already reaches 60.75% of households. However, this coverage is the sum of all operators’ networks, which is not the case in practice. 

 In a household, the service might be available but from a different phone carrier than the user’s current one. A less publicized but available fact on ANATEL’s website is that the service covers only 1.51% of the national territory. A similar disparity, known to experts, occurs with 4G coverage, which reaches over 90% of households but only 18.16% of the national territory. 

 Despite the high cost of smartphones, Brazil’s 5G technology marks its second year with 27.9 million active lines, out of a total of 260 million enabled devices across various technologies. Claro leads the 5G market with a 37% share and also boasts the best average 5G speed in the capitals. 

 Claro claims its 5G network is not only faster but also has the lowest latency (response time) in the market, ensuring “the best experience for videos and games.” “Claro has always been at the forefront of 5G, consistently investing in cutting-edge infrastructure and technology for the best customer experience, both at home and on the go,” Mr. Teixeira stated in a note. According to him, the strategy aims for a 3.8 times faster user adoption compared to 4G. 

 In terms of 5G coverage, TIM has the most antennas, totaling 8,500. The sector has put 23,000 signal transmission stations into operation across 589 cities. This number is small considering approximately 100,000 antennas for other mobile telecommunication technologies in the country. TIM reports that in these two years, it has brought signal to more than 350 cities, covering 57% of the urban population. 

 “TIM was the only operator to gain market share in 12 months, with a 3.1 percentage point increase, advancing in its strategy to expand 5G with a focus on the best customer experience. In the last three months alone, the company activated one city per day with 5G,” the phone carrier stated in a communication about the two-year milestone of 5G’s arrival. 

 Vivo, while more reserved in its strategy to offer broader coverage and higher connection speeds than its competitors, said it is currently in the “widespread activation” phase of 5G technology. In a statement, the company emphasized that it already has the new standard in all capitals and cities with more than 500,000 inhabitants and is now rapidly expanding to cities with 200,000 inhabitants. 

 “We have a total of 205 cities, covering over 48% of the population,” Vivo said in a note. According to the company, in the first quarter, 5G-compatible cell phone sales accounted for 88% of its total sales. Vivo stated that “the expansion of the 5G network to other regions is gradual and evolves according to technical capabilities, demand, and authorizations for antenna installations.”