The 2G/3G shutdowns are part of a global trend. Mobile network operators (MNOs) and governments are determining that the older 2G and 3G technologies, as well as the spectrum allocated to them, should be phased out for faster and more efficient 4G/LTE and 5G networks. This transition is typically referred to as the “2G and 3G sunset”.
As of November 2023, the Global Mobile Suppliers Association (GSA) has identified 177 completed, planned or in-progress 2G and 3G switch-offs across 59 countries and territories. A look at the reasons for these shutdowns, their impact, and the domestic and global developments around them…
Reasons for switch-off
Spectrum efficiency
2G and 3G use substantial radio spectrum, and with the ever-increasing demand for wireless communication, there is a need to free up more spectrum for newer, more efficient 4G and 5G networks. By retiring 2G and 3G, the radio frequencies can be repurposed for faster 4G and 5G services.
Obsolete technology
2G and 3G networks are outdated technologies, necessitating the modernisation of networks. These legacy networks were designed for basic data and voice usage. However, technology has outpaced their network capabilities, rendering them incapable of supporting high speed data applications such as video streaming and internet of things. 4G, 5G, and soon, 6G will offer optimised performance, including faster speeds, greater capacity and operational efficiencies.
Energy savings
Migrating from 2G/3G to 4G/5G technologies will offer ongoing energy savings to operators from year one, which will offset the premature replacement of 2G/3G devices that have been rendered obsolete. A study by French telecom regulator Arcep’s technical experts committee concluded that despite a reduction in usage, 2G and 3G networks still account for a hefty 21 per cent and 33 per cent of network base stations’ energy consumption, respectively. However, it expects this figure to decrease to around 17 per cent by 2025. Migrating 2G/3G technologies to 4G/5G technologies will therefore enable continuous and steady energy savings. Additionally, newer technologies are designed to be more power-efficient, which can lead to further energy savings for operators.
Cost savings
Maintaining multiple generations of networks is expensive for MNOs. A legacy network requires ongoing maintenance and support, which diverts resources from newer networks. Retiring older networks can help operators save on power and maintenance costs. They can also reduce the number of cell towers, base stations and other network infrastructure that require maintenance and electricity to operate. This can result in significant cost savings over time, especially as newer and more efficient 4G and 5G networks become the norm.
Customer demand
The traffic on 2G and 3G networks is decreasing as more consumers and businesses adopt devices with faster data connections. To cater to the growing demand for high speed and low latency, MNOs must allocate more resources to the newer 4G and 5G networks.
Potential impact
The shutdown of 2G and 3G networks can significantly impact consumers still using devices that rely on older technologies, leaving them with limited or no connectivity. This can be a major issue for individuals relying on these devices for critical communication or accessing basic services. To maintain connectivity, all customers will need to upgrade to at least a 4G-enabled device. However, this can be expensive, especially for the economically backward population. Moreover, 2G/3G consumers may have limited options for mobile operators, as some operators may choose not to offer services on older networks or may phase them out earlier than others.
In some cases, the shutdown of 2G and 3G networks can result in reduced network coverage, as the newer technologies may not reach all the same areas or provide the same level of coverage. This can be particularly problematic in rural or remote areas with limited mobile connectivity. Furthermore, due to its wider coverage than 4G, 2G remains crucial for providing voice and text services in rural areas. Moreover, there are numerous non-mobile phone devices that rely on 2G, such as energy smart meters, which could be impacted by the 2G shutdown.
Global developments
The Asia-Pacific and Oceania regions are at the forefront of closing legacy 2G networks. The first country to complete a full 2G shutdown was Japan in September 2012. Since then, other notable markets have finalised their 2G switch-offs, including Singapore (April 2017), Taiwan (December 2017) and Australia (June 2018). Meanwhile, the first country to completely phase out 3G was Taiwan at the end of 2018. Since then, it has been joined by countries such as the Czech Republic (November 2021), Germany (December 2021), Singapore (December 2021) and Malaysia (March 2022).
In the US, Verizon became the last major telco to decommission its 3G code-division multiple access (CDMA) networks in December 2022. The move essentially ended 3G access across the country. A single smaller operator, United States Cellular Corporation, shut down its 3G CDMA services in January 2024. 2G has already been discontinued by major US MNOs. AT&T ended support for its 2G network in 2017 and Verizon 2G was phased out in 2020. Further, T-Mobile had announced it would shut its 2G network on April 2, 2024, but has now postponed it to later this year.
In Europe, 3G networks are expected to be switched off even before 2G. Approximately 19 operators are planning to shut down their 3G services by 2025, and around eight are planning to switch off their 2G networks by 2025. The UK government announced in December 2021 that it had reached an agreement with the mobile industry to switch off 2G and 3G networks in the country. The UK’s four MNOs – EE, Virgin Media O2, Vodafone, and Three will retire both networks across the UK by 2033 at the latest, but likely much earlier. EE, Vodafone and Three are planning to retire 3G in 2024, while Virgin Media O2 plans to do so in 2025.
Overall, as per GSA data, Europe has or will undertake the largest number of shutdowns, accounting for 107 or 62 per cent of the total. Asia will be responsible for 35 (20 per cent), followed by North America with 11 (6 per cent), Oceania with 10 (6 per cent), Latin America and the Middle East with eight (5 per cent), and the Caribbean with six (3 per cent). Africa is the only region where no 2G or 3G shutdowns have been announced so far, but it will be part of future planning once newer technologies penetrate deeper.
Feasibility in India
The 2G network shutdown has been in talks in India for the past few years. The subject has been brought to the forefront again by Reliance Jio, which does not offer 2G services and began its operations with 4G networks. In its response to a consultation paper by the Telecom Regulatory Authority of India (TRAI), Jio suggested that the government should devise a policy to phase out legacy 2G and 3G networks to avoid unnecessary network costs and ensure that all customers are migrated to 4G and 5G networks.
However, Vodafone Idea Limited (Vi), which has the highest proportion of 2G users in the country, opposed such a move. It argued that an inorganic shutdown through a regulatory mandate would move low-income and marginal consumers away from accessing basic telecom services, thereby increasing the digital divide. Vi submitted to TRAI that there is a larger public interest being fulfilled through the continuation of such older technologies. Any decision to shut down older technologies must be taken after considering the interest of consumers, as is being done in the case of 3G.
The way forward
Although the timeline of the 2G/3G sunset is highly fragmented across geographies, the number of shutdowns is set to increase in the coming years. In some markets, 2G is expected to remain in operation for a decade or longer, as specific services such as mobile payments in Africa and vehicle emergency calling in other markets depend on 2G. In such cases, networks are likely to continue to operate for an extended period.
As for India, experts believe that 2G switch-off can be implemented in the long term but should be ruled out for the next three to four years. 2G shutdown will depend on how the ecosystem evolves over the next few years rather than an impending network overhaul. India still has over 300 million 2G data and non-data subscribers, constituting around one-fourth of the overall wireless subscriber base. That said, 2G, 3G, 4G and 5G technologies will most likely co exist and continue to deliver mobile services to users across the country.
Sarah Khan
