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

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments