Telefonica has been active in Latin America for decades – but in late 2019, it announced plans to withdraw from many of the markets in this region, divesting or spinning off its operations in a process that is ongoing. From a business standpoint, this made sense – aside from its Brazilian unit, Telefonica’s Latin American operations accounted for just a fifth of its operating profits.
It’s that time of year again – we’re off to Barcelona next week for Mobile World Congress 2025. As we did last year, our editorial team – James, Manny, Julian and Vaughan - got together to discuss the key talking points and technology trends that we expect to emerge this year.
As we move into 2025, market analysts are advising telcos to channel their investments in Gen AI more towards revenue-generating opportunities rather than back-office productivity, and to prioritise high-value enterprise customers even over consumers. However, the difficult economic climate means they will still struggle to deliver returns in the near term.
As had been anticipated, 2024 proved to be another challenging year for the communications industry. Declining growth in fixed and mobile broadband network investments coupled with the ongoing struggle to monetise new 5G services, and accompanied by the global economic downturn, continued to impact business performance for many telcos, equipment vendors and the wider industry.
5G market share will overtake 3G and 2G next year in Latin America, according to a joint study from industry association 5G Americas and research firm GlobalData. In addition, total data traffic on both fixed and mobile networks in Latin America is expected to more than double in four years.
