M1 to Shut Down 3G Network on Schedule
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NEWS
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In July 2024, Singapore Communications Service Provider (CSP) M1 announced that it was on schedule to shut down its legacy 3G network on July 31, 2024, after initially announcing its intention to do so in July 2023. Meanwhile, its rivals, Singtel and StarHub, have extended their respective deadlines for the 3G network switch off, providing their customers with a longer lead time of up to November 2024 before proceeding with the cessation of 3G services.
These moves by Singaporean CSPs are in alignment with global trends, where major operators around the world, such as Vodafone, BT EE, Verizon, and AT&T, have all already shut down their 3G networks. Operators in countries such as Australia, New Zealand, Japan, and Vietnam are also in the midst of planning their own respective 3G turn-off dates.
Why Are Operators Looking to Sunset 3G Networks?
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IMPACT
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There can be many reasons why it would be beneficial for CSPs to discontinue their 3G networks. One commonly cited reason is to allow the refarming of 3G spectrum for improved 4G and/or 5G services. Additionally, in an earlier assessment from ABI Research, it is expected that the retirement of 3G and legacy systems can also lead to an overall 15% energy consumption reduction due to better spectrum efficiencies. Lastly, it is often more complex and expensive to run both circuit-switching networks (for 3G) and packet-switching networks (for 4G and 5G) simultaneously. Hence, shutting down 3G networks also presents CSPs with a large potential to derive cost savings.
While the benefits associated with the cessation of 3G networks are clear, it is often challenging to proceed with the shutdown on schedule due to a variety of reasons. Some of these factors are listed below:
- Ensuring That No One Is Left Behind: Despite having migrated the majority of one’s subscribers off its 3G network, there typically remains a sizable number of subscribers who may face difficulties upgrading to 4G/5G plans and/or switching out their legacy mobile handsets. This issue is even more pertinent when emergency services are involved. For example, some older models of 4G handsets may not support emergency calls on 4G networks, potentially impacting the ability of these subscribers to contact emergency services after the closure of 3G networks. Due to these concerns, the Australian government could potentially instruct CSPs to delay their planned 3G network shutdowns.
- Detecting Impacted Enterprises: While it may be easier for CSPs to identify impacted consumers, it is often more difficult to identify businesses that are using 3G-only Internet of Things (IoT) devices for business operations, such as for processing payment transactions, condition-based monitoring, telemetry data collection, etc. For enterprises that are not aware that their devices are only capable of running on 3G networks, the impending 3G network cessation is likely to cause significant disruptions to their business operations.
CSPs and Governments Need to Start Planning Ahead
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RECOMMENDATIONS
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While not all CSPs have immediate plans to sunset their 2G or 3G networks, it is important for CSPs to start planning for that as a long-term strategic objective. Similarly, governments need to recognize the importance of upgrading legacy networks to more modern ones, not only in terms of supporting higher demands for mobile data traffic, but to also increase the power efficiency of operating these networks.
In studying some of these earlier case examples around the world, ABI Research has identified some key recommendations that CSPs and governments should consider when planning for the eventual cessation of legacy networks:
- Ensure Adequate and Clear Messaging: Ensuring that sufficient communication is provided to the public is a key priority for CSPs. There should be joint efforts from both the CSP community and the national regulator to ensure that both consumers and enterprises are aware of the impending network shutdown and the implications that this might have on them. Adequate support channels should also be set up to ensure that both consumers and enterprises can seek clarification on how they can prepare themselves for the network closure.
- Protecting the Most Vulnerable Groups: CSPs should continuously monitor and understand the needs of vulnerable groups that are most impacted by a network shutdown. Early efforts should be made to reach out and assist these groups to migrate to 4G or 5G networks, whether in the form of subscription upgrades and/or increasing access to affordable handsets.
- Partnering Equipment Manufacturers and Retailers: Early notice will need to be given to equipment manufacturers and retailers of any impending network shutdown. This will ensure that sufficient time is provided to minimize the number of incompatible devices that are being sold in the marketplace. Such advance notice can also give CSPs and governments time to address any potential issues on the device supply side, such as ensuring that there is enough stock of affordable 4G or 5G handsets.
While the cessation of networks can prove challenging, it is a critical step for any country looking to evolve its communication infrastructure to support future communication and data requirements. Strong planning and collaboration between public and private players in the telecommunications industry will play a crucial role in enabling this.