5G rollout may not reduce the digital divide in Chile

Significance

Given Brazil’s postponement of its planned 5G tender earlier this year, this was the first such tender in Latin America, although others are soon expected to follow. Partly because of Chile’s small market, many sectors, including telecommunications, are dominated by a handful of large players, often to the detriment of consumers.

Impacts

• The lower bands will still probably be used for ongoing expansion of 4G services rather than for 5G.
• One study suggests that 5G deployment could boost Chile’s annual GDP growth by around half a percentage point for the next ten years.
• Opinions differ as to whether 5G will narrow or widen Chile’s digital divide.