The global telecommunications industry is undergoing a significant transformation as legacy 2G and 3G networks are being systematically phased out to make way for advanced 4G and 5G technologies. This trend is meticulously tracked by the Global mobile Suppliers Association (GSA), which reported a substantial increase in the number of planned and completed network shutdowns over the past year. By June 2024, the number of 2G and 3G shutdowns is expected to reach 192 across 68 countries, up from just 59 recorded in December 2023. This includes efforts by 93 operators in 52 countries planning or completing 2G turn-downs and 96 operators in 46 countries working on or having completed 3G sunsets. The peak of these shutdowns is anticipated in 2025, with 32 operators planning to shut down 2G and 16 targeting 3G.
Global Progress and Regional Differences
In a bid to support the ever-increasing demand for faster and more efficient mobile networks, the redistribution of spectrum resources from obsolete 2G and 3G technologies to modern 4G and 5G infrastructures has gained momentum worldwide. This shift is not uniform across the globe and varies based on regional technological adoption and regulatory frameworks. The European region stands at the forefront with the highest number of such network sunsets, closely followed by Asia. As regions prioritize enhancing network efficiency and minimizing operational costs associated with maintaining outdated infrastructure, this shift towards advanced networks is becoming increasingly prevalent.
In Vietnam, for instance, the Ministry of Information and Communication has taken definitive steps to phase out 3G services by September 2028. Viettel Telecom, a major telecom operator in the country, has already begun transitioning its 2G customers to 4G. Similarly, Latin America and the Caribbean are witnessing a surge in 2G and 3G shutdowns as operators there accelerate the adoption of LTE. According to GSA data, 43.5% of operators are transitioning to both 4G and 5G networks, 39.7% are shifting to LTE-only, and 7.6% are planning to leapfrog directly to 5G, leaving less than 10% still maintaining some form of 3G network.
Driving Forces and Industry Impact
The primary driver behind the global trend of phasing out legacy 2G and 3G networks is the pressing need for faster, high-capacity networks to support contemporary mobile applications and various industry demands. With data consumption reaching unprecedented levels, the constraints of older technologies have become increasingly apparent. Modern 4G and 5G technologies offer significantly enhanced services, including higher data throughput, lower latency, and greater reliability, making them indispensable for meeting current and future connectivity demands.
This coordinated global effort aligns seamlessly with the industry’s broader objectives of enhancing overall network efficiency, reducing operational expenses tied to outdated infrastructure, and providing high-speed services to consumers and businesses alike. The move also underscores a global consensus toward embracing advanced technological standards, thereby fostering a unified, future-ready telecommunications landscape. By reallocating spectrum and resources towards 4G and 5G, operators can ensure they meet the rapidly evolving needs of a data-driven world while paving the way for innovations that rely on ultra-fast, low-latency connectivity.
The Road Ahead
The global initiative to retire legacy 2G and 3G networks is driven by the urgent need for faster, high-capacity networks to support modern mobile applications and diverse industry needs. As data usage hits unprecedented levels, the limitations of older technologies become more evident. Today’s 4G and 5G technologies provide greatly improved services, such as higher data throughput, lower latency, and enhanced reliability, making them essential for meeting both current and future connectivity demands.
This global initiative aligns well with the broader goals of the telecommunications industry: boosting overall network efficiency, cutting operational costs tied to outdated infrastructure, and delivering high-speed services to both consumers and businesses. It also highlights a global agreement on adopting advanced technological standards, paving the way for a unified, future-ready telecommunications landscape. By reallocating spectrum and resources to 4G and 5G, operators can effectively address the swiftly evolving needs of a data-driven world, setting the stage for innovations that depend on ultra-fast, low-latency connectivity.