On 24th September, Brazil’s telecom regulator, Anatel, approved the release of the 3.5 GHz frequency band for 5G in 189 more towns. This move not only accelerates Brazil's 5G rollout but also highlights the crucial role of the country’s tower industry in supporting this next-generation network.
The backbone of 5G: telecom towers
Brazil, the largest market in Latin America, is home to over 73,000 telecom towers, most of which are operated by independent tower companies rather than mobile providers themselves.
Major telecom players like TIM, Vivo (Telefónica), and Claro (América Móvil) rely heavily on these tower companies to support their networks. The 5G spectrum auction in November 2021 saw these companies, along with some smaller internet service providers (ISPs), secure parts of the new 5G frequency.
How towers drive 5G growth
The rollout of 5G relies on a dense network of towers, particularly in cities where the 3.5 GHz frequency, which is vital for 5G, has a shorter range than older networks like 4G.
As a result, tower companies are working to build more sites, upgrade existing infrastructure, and meet the increasing demand from telecom operators. The tower industry is thriving as it provides the backbone for the faster, more reliable connections that 5G promises.
In rural and suburban areas, upgrading existing towers is also key to ensuring these regions don’t get left behind in the 5G revolution. Tower companies are vital in bridging this gap, extending coverage to more remote areas.
Brazil’s growing market
Brazil’s tower industry is highly competitive, with independent companies specialising in building and maintaining these essential structures. The growth in demand for 5G services is driving rapid expansion in the tower sector, which is crucial for enabling faster and more reliable networks across the country.
Anatel's plan is to extend 5G coverage to all 5,570 municipalities in Brazil by 2026. This ambitious goal will require continued growth and investment in the tower industry, ensuring that the necessary infrastructure is in place to support the increasing demand for mobile data and connectivity.
The Future of 5G and towers
The activation of 5G across Brazil will lead to faster downloads, seamless video streaming, and the development of new technologies like smart cities and the Internet of Things (IoT). Tower companies will play a pivotal role in making this happen, building and maintaining the infrastructure needed to deliver 5G to millions of Brazilians.
As the tower industry continues to expand, it will remain at the heart of Brazil’s digital transformation, supporting telecom providers as they work towards delivering 5G nationwide.
Latin America’s role in the global telecom tower market
The global telecom tower market is experiencing significant growth due to the increasing importance of mobile communication. This is particularly relevant in Latin America, where countries like Brazil are making substantial investments in telecom infrastructure.
As mobile communication becomes essential, innovations in tower technology, such as low-earth orbit satellites used by companies like KDDI Corporation, are paving the way for more reliable internet services in remote areas. The telecom tower market is diverse, with various types of towers and ownership structures catering to the unique needs of different regions.
As Latin America continues to develop its telecom infrastructure, it stands to benefit greatly from this global trend, positioning itself as a vital player in the telecommunications landscape.
