Start building your global team

Autralia Flag

1300 00 22 22

US Flag

929 552 4448​

UK Flag

0203 137 3704

3G Network Switch Off and Its Impact on Global Businesses

3G Network Switch Off: What it Means for Your Business

Since 2019, countries began rolling out their 3G network closure to prepare for the widespread adoption and optimisation of 4G and 5G technologies. Mobile network operators compel individuals, businesses, and corporations across all industries to upgrade to 4G or 5G-enabled technologies before the 3G network switch off.

This transition, known as the “3G sunset”, will undoubtedly impact mobile phones and other technologies that rely on 3G networks. Staying ahead of this sunset is crucial Businesses must grasp the effects of the 3G network switch off and implement strategies to ensure the business’s continued growth and development. 

Why is the 3G network shutting down?

All wireless communication relies on a finite resource known as radio frequency or “spectrum”. This frequency is measured in megahertz bands, such as 850MHz or 2100MHz. Telecommunication companies (telcos) purchase access to specific spectrum bands to build their networks, but once a band is fully utilised, no additional capacity can be added.

As a result, telcos are phasing out older 3G network to optimise and redeploy this spectrum for more efficient and faster 4G and 5G services. These newer mobile networks feature lower latency, improved connectivity, and faster internet speeds, with 5G being the latest and fastest. This reallocation is necessary to meet the increasing demand for data and improved connectivity.

While shifting to these newer networks is beneficial, the total 3G network switch off worldwide is taking time. After all, it is still a highly used network, particularly in rural areas. Certain devices still use this network, such as vending machines, pay stations, parking stations, car washes, and laundromats, among others.

Where has the 3G network switch off rollout already happened?

The 3G network closure is well underway in Australia. Major carriers such as Telstra, Optus, and Vodafone have set dates for the completion of their transitions. Telstra is slated to discontinue its 3G services on 31 August 2024. This decision follows the earlier shutdown of its 2100MHz 3G spectrum on 25 March 2019, leaving the 850MHz spectrum operational until the final shutdown date. Initially planned for 30 June, Telstra extended the shutdown to give customers more time to upgrade their devices. Customers using Telstra-powered mobile virtual network operators (MVNOs), such as Boost Mobile, Belong, and Woolworths Mobile, will also be affected. 

Optus will follow closely behind, with plans to cease its 3G operations on 1 September 2024. Like Telstra, Optus has already phased out its 3G services on the 2100MHz spectrum while continuing to provide 3G on the 900MHz spectrum until the shutdown. This phased approach is to ensure a smoother transition for customers still dependent on the older mobile network.

Vodafone, under TPG Telecom, has already completed its 3G network closure. The process began on 15 December last year and concluded in January. Vodafone had previously ceased 3G services on its 2100MHz spectrum in 2019, ensuring a more gradual transition for its users.

It is important to note that, in Australia, the Federal Government may influence these timelines, particularly if there are concerns about older 4G phones’ ability to make emergency calls without 3G support. This has already resulted in Telstra delaying its shutdown from June to August. Additionally, several older 4G phones that lack Voice over LTE (VoLTE) capability will be unable to make calls, including emergency calls, once 3G network is discontinued. Customers using older devices should upgrade to continue making calls on 4G networks. Both Telstra and Optus have provided lists of affected devices to help users identify if they need a new phone. The complexity increases with devices like the Google Pixel 2 XL, which has different capabilities on Telstra and Optus networks post-shutdown.

3G networks are also being phased out across Southeast Asia to make way for 4G and 5G. In Indonesia, 3G was fully shut down by May 2023 and Singapore plans to discontinue its 3G network by July 2024. Vietnam will phase out its 2G network by September 2024. The Philippines has been progressively phasing out both 2G and 3G networks since 2019, with a full shutdown expected by early 2024. Initiatives in the Philippines have included the discontinuation of 3G SIM cards and promotions encouraging device upgrades. Despite the progress, certain markets like Indonesia, Malaysia, and the Philippines will retain 2G networks for basic communication needs due to weak 4G signals in non-urban areas and longer device replacement cycles.

While Singapore and Thailand have already shut down their 2G networks, facing fewer barriers due to higher purchasing power and efficient network expansion, the Philippines and other emerging markets have retained 2G to support rural and economically constrained users. Vietnam is gradually retiring its 2G network, easing the transition to 4G without costly campaigns. 5G expansion in Southeast Asia is cautious, prioritising financial stability over rapid rollout. In the Philippines, substantial investments were made in 4G during the pandemic, with similar conservative approaches observed in Malaysia. Rapid 5G deployment might slow returns on investment in these markets due to longer device cycles, affordability issues, and limited demand.

How does the 3G network switch-off impact businesses

How does the 3G network switch off impact businesses?

The 3G network switch off will significantly impact a range of devices beyond just mobile phones. Many businesses rely on devices that utilise 3G connectivity, such as security systems, medical alarms, electronic funds transfer at point of sale (EFTPOS) machines, and certain car systems. Examples include telecare alarms, which provide remote support to elderly, disabled, and vulnerable individuals living alone, security alarms, ATMs, and payment terminals that process card payments during purchases.

Businesses must take immediate action if they rely on IoT devices dependent on 3G networks. If the business uses any device that solely operates on 3G, the manufacturer or relevant telecommunications company will likely contact and guide them on the next steps in the coming months. To avoid disruptions, upgrade the devices immediately to minimise operations disruption once 3G networks are fully decommissioned.

How do I find out if my devices are affected?

The telcos have been contacting affected customers to immediately take action. If users do not upgrade or replace their phones, there is a possibility that they will not be able to call Triple Zero, Australia’s emergency call service, for any emergencies. “Anyone who may be unsure if their device is impacted should contact their mobile network operator in the first instance,” Communications Minister Michelle Rowland mentioned. Affected customers should take action affected customers should take action to ensure their business still functions amidst the 3G network switch off.

What to do when the switch off happens

As the 3G network switch off approaches, businesses must ensure a seamless transition. Here are three key steps to prepare your business:

1. Check your inventory

Conduct a comprehensive audit of all your devices, systems, and applications to identify those reliant on the 3G network. Create an inventory list categorising devices by their function and connectivity requirements.

2. Plan your 3G migration

Develop a detailed migration plan outlining the steps to transition from 3G to more advanced networks such as 4G or 5G. Establish timelines and milestones to ensure a smooth transition. Allocate the necessary resources, including budget and personnel, to support the migration process. Clear communication of the plan to all stakeholders is crucial so that everyone knows their roles and responsibilities to avoid any operational hitches.

3. Update your technology

Invest in technology and infrastructure that supports the latest network standards to make your business resilient against future network changes. Evaluate vendors and solutions that offer scalability and long-term support, accommodating future advancements. Regularly review and update your technologies to stay ahead of network changes and avoid similar issues in the future. Implement best practices for technology lifecycle management, including regular updates and maintenance to keep your systems current.

Staff Domain‘s offshore outsourcing solutions connect your business to a highly experienced global talent pool for game-changing results. Effortlessly manage your offshore workforce with our comprehensive compliance, payroll, and HR support, and benefit from fixed, transparent pricing in your local currency. Contact us today or schedule a meeting with our sales team to quickly source the right offshore team for your business.

Share this post

Related Posts