Menu
Why 2G/3G networks won’t close en masse until 2020

Why 2G/3G networks won’t close en masse until 2020

LTE’s appeal and increased affordability means operators in developed markets have to refarm GSM or CDMA spectrum to accommodate this demand.

LTE’s appeal and increased affordability means operators in developed markets have to refarm GSM or CDMA spectrum to accommodate this demand.

The next step is to close down these legacy networks, but determining the “sweet spot” for network closure is challenging, according to a new report by global research firm, Ovum.

“For operators in transition, there are key revenues – M2M, voice and roaming – that need to be considered in the trade-off when determining the optimal time to close the network,” says Nicole McCormick, principal analyst, Ovum.

“The amount of 2G, 3G, and LTE spectrum an operator has can also affect timing.”

A few operators in the US and Asia-Pacific have announced network closures. However, Ovum found that these are the exceptions.

“The majority of operators are not in a position today to close their legacy networks, nor will they be in the next 1–2 years,” McCormick adds.

“Rather, operators are deciding how to best manage a transition towards full network closure, given that M2M, voice, and roaming revenue cannibalisation remains a pertinent issue. We don’t expect networks to be retired en masse until closer to 2020.”

Aside from important commercial factors that need to be considered, there are also cost factors that affect the timing of shutting down the network - these include the cost of migrating residual customers to LTE and the cost of maintaining an ageing legacy network.

“Ovum believes that in some markets 3G networks may see closure before 2G ones,” McCormick adds.

“2G is still an important source of revenue. LTE provides a better mobile broadband experience than 3G, and with VoLTE, LTE can handle the voice responsibilities of 3G.

“This points to the possibility that operators opt to close their 3G networks before they close 2G.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags 3g4govum2G5G

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments