How The 2G And 3G Shutdown Will Impact Business

Millions if not billions of IoT devices rely on 2G and 3G networks for an affordable way to connect with the rest of the world. But the reality is that this technology is decades old, a veritable senior citizen doddering about in the modern world, and there are far better, faster, and more reliable connectivity solutions available.

Importantly, there’s only so much bandwidth to go around. Even with the recent 2022 spectrum allocation auction, South Africa’s mobile operators are still keen to shutdown 2G and 3G and take advantage of next-generation technologies, including Fixed LTE and 5G. 

With the planned shutdown of 2G and 3G networks set to take place, we want to explore a few key topics, including 

• Why mobile operators are shutting down these networks 
• When the shutdown is set to take place
• How will the shutdown affect industries and technology?
• How businesses should prepare for the shutdown

Why Mobile Operators Are Shutting Down These Networks

There’s little doubt that the primary driving force behind the shut down of the 2G and 3G networks in South Africa is because of the reallocation of radio frequency spectrum (wireless network capacity) for 4G and 5G connectivity.

Beyond this, though, mobile operators are faced with the matter of supply and demand. Simply, operators have a limited range of radio frequencies they can dedicate their networks to and the demand for 4G, Fixed LTE, 5G and future technology will only increase. Ultimately, the opportunity presented by these newer networks will continue to outgrow the demand for continued support for 2G and 3G infrastructure.

When The Shutdown Is Set To Take Place

It’s reported that this process will take a few years, but we’ve done some research and discovered who is switching off what and when.

MTN 

MTN South Africa has reported that it is aligned with global trends and plans to shut down 2G and 3G accordingly. The goal is to switch off 3G first, with plans to start decommissioning 3G in 2025/26. It will be several years before MTN switches off 2G and the exact timelines are being determined. 

TELKOM 

Telkom has already shut down most 2G services, with 80% of this network already decommissioned. The telecommunications giant is set to continue optimising their spectrum utilisation to ensure efficient use of existing capacity to meet the growing demand for data.

VODACOM 

Vodacom has indicated that it plans to turn off its 2G network first, with 2G spectrum to be re-farmed for 5G services. A limited 2G capacity will be made available to support critical and emergency services.  The indicative dates to start the migration from 2G is 2025, while 3G is 2023.

How Will The Shutdown Affect Industries And Technology?

There’s no arguing with the fact that shutting down these legacy networks will allow more people to become data-enabled, and enjoy better voice quality, more data capacity and efficiency on 4G and 5G networks. Additionally, these newer technologies will also help mobile operators to save operating costs, which will benefit consumers and businesses alike.

In spite of the various and exciting opportunities that abound through the use of Fixed LTE and 5G connectivity in previous posts (like here and here), , there are also a number of dangers that could befall some technology and industries once 2G and 3G networks are switched off. 

To our minds, one of the markets that will be heavily affected is the payment sector. In South Africa, the payment industry still largely uses 2G and/or 3G devices. Older hardware will quickly become obsolete, making it vital that businesses of all sizes who rely on these older networks start putting migration/ upgrading plans into place.

Other technology that will be affected includes:

• Medical alert devices 
• Fire alarms
• Inventory trackers
• Smartwatches
• eReaders
• GPS trackers (including for pets)

 

Thankfully, with the institution of faster and more reliable 5G, the many network-based features that will be affected by the shutting down of 3G, can transition from aging to future-proof technology. 

How Businesses Should Prepare For The Shutdown

The last thing you want is to be using 2G or 3G networks when a carrier you rely on shuts their network down. 

Here’s how Huge Connect can help make sure that you’re ready:

• INVENTORY – Our teams can evaluate your devices to determine which depend completely on 2G or 3G and which simply use it as a fallback. 
• DEPLOYMENT DATES – You don’t have to know what all the operators are doing, because we keep track of which operators are shutting off what and when for you and plan accordingly.
• MIGRATION PLANS – Entrust us to create a bespoke migration timeline, including coordinating significant updates and retrofitting with your customers or planning out a transition to another service with your carriers. 

Is Your Business Ready For 2G And 3G Network Shutdown?

If you would like to find out how Huge Connect can help you, not just from an advisory role, but also from the perspective of helping you navigate your migration, the legislation involved, and how to practically deploy any upgrades necessary, then please get in touch today.