“Consolidated markets have more investment and better networks.”

Pau Castells, Head of Economic Analysis at GSMA, presented this conclusion within the framework of the 35th Edition of International Conferences held at the Hilton Hotel in the City of Buenos Aires.

Castells elaborated «Connectivity networks are increasingly dynamic, complex and predominantly mobile. Their ability to respond to new trends and demands depends on the possibility of deployment at affordable costs. This is related to there being competitive intensity and sufficient scale. In markets where regulations have prevented consolidations, as in the case of Europe, this has resulted in lower investment, worse networks and technologies, and there are no reductions in prices for users. While in markets where they do not impose limits, such as Asia and part of Latin America, where ten markets have been consolidated since 2010, investments are energized, deployments are accelerated and price increases for consumers are not recorded at the same time that services improve. Today Europe is behind China in the deployment of 5G and from other markets. Consequently, when the scale of operators is reduced through regulation, there are worse networks, less deployment and there are no positive consequences on costs. The consequences of this type of policy do not end with the mobile user, it impacts the entire economic structure and the competitiveness of companies.”

Lucas Pussetto, Consultant and Professor at the IAE Business School, expressed «How operators can help increase productivity: companies have a key role. We are in a sector that increases its participation in added value. This sector represents 5% and will weigh 8 or 10% of the GDP, it already contributes more to growth than other sectors. Telecommunications companies and operators have a key role so that AI can be implemented. become a general purpose technology. In Singapore they have a very high level of connectivity and human capital. Connectivity puts AI within reach of all countries quickly, but for it to have an impact it is key that companies have predictable investment conditions.”