Slow sunset for legacy networks as Internet of Things roars in
SA plans 2G switch-off in 18 months as mass rollout of 5G accelerates — but in some areas older methods still provide important revenue
SA announced that it would switch off its 2G network in mid-2024 and 3G by March of 2025. In September, a draft policy document from Icasa outlined the move as key to freeing up frequencies for 5G services
African countries have begun retiring 2G and 3G “legacy” networks as burgeoning digital economy raises the demand for faster and more efficient internet connectivity — but in some areas it may be a long, slow sunset.
Spectrum auctions, mobile financing arrangements and the mass roll-out of 5G networks are all seen accelerating the shift to high-speed networks across key markets on the continent. SA, Seychelles, Botswana, Ethiopia, Tanzania, Nigeria and Zimbabwe have rolled out commercial 5G services over the last two years.
“Many operators and governments are determining that the older 2G and 3G technologies as well as the spectrum allocated to them should be switched off for the faster and more efficient 4G and 5G networks,” said Global Mobile Suppliers Association (GSA) president, Joe Barrett in the association’s latest report.
SA announced that it would switch off its 2G network in mid2024 and 3G by March of 2025.
In September, a draft policy document from Icasa outlined the move as key to freeing up frequencies for 5G services.
Earlier in March, President, Cyril Ramaphosa underscored the importance of radio spectrum auctions and the country’s switch to digital television to free up “valuable radio frequency spectrum to be used in the provision of mobile broadband services and other applications.”
Nigeria is planning to hold a second 5G spectrum auction this
December to allow its telecom operators access to high-speed networks. The first auction conducted by the Nigerian Communications Commission was won by two telcos — MTN and Mafab. So far, only MTN that has launched commercial 5G there.
The Nigerian telecom regulator listed the digitisation of government services, the shift to e-commerce, e-learning, video streaming services, e-health and the use of robotics in manufacturing as key areas requiring faster internet.
Since 2015, Nigeria has seen its broadband penetration increase from less than 10% to 44.49% by July 2022.
Kenya’s largest telco by subscriber base, Safaricom, recently rolled out commercial 5G in 35 sites in Nairobi and as well as four major towns after a successful pilot last year.
The operator is providing 5G Wi-fi to residences and commercial offices to facilitate adoption of 5G-enabled devices. In Kenya 5Genabled smartphones cost more than US$1,000, putting them out of reach of the majority of the population.
In Nigeria, MTN is banking on financing platform Intelligra, which helps individuals to purchase 4G and 5G phones and pay in instalments.
From 2023, the operator expects to finance 1,000 units a day.
Chinese smartphone vendors are also helping drive down the cost of mid-range devices in Africa. The latest figures show plunging prices of mid-range devices helped to push the uptake of 5G devices on the continent by 26% in Q2.
Transsion — with its Tecno, Itel and Infinix brands — controls 48% of Africa’s smartphone shipments and has been linked to a drop in the cost of handsets valued between US$200 and US$450. Samsung is second, with a 25% market share, while China’s Xiaomi is a distant third with 6.6%.
By the end of September 2022, the GSA, whose executive team includes Nokia, Huawei, Samsung, Apple and Ericsson, identified 142 operators that have either completed, planned or are in progress with 2G and 3G switch-offs in 56 territories across the globe.
The association’s researcher, Jordan Cox, said the pace of sunsetting legacy networks in Africa is being slowed by a still-growing user base of these legacy networks in some areas, providing operators with important revenues — with the high cost of faster mobile devices hampering wider uptake.
“This points to a longer period or low level of sunsetting here in Africa,” said Cox.
GSMA, in its 2022 Mobile Economy Sub-saharan Africa report, said that while 3G remains a dominant connectivity technology in the region and is expected to account for over 50% of connections until 2025, its overall share has begun falling.
“This year marks a turning point as 3G adoption begins to decline for the first time,” the GSMA report says.
By 2025, the report shows, 4G will nearly double mobile connections in the region from 17% in 2021 to 33% in 2025.
There will be 41 million 5G connections in the region — accounting for 4% — by 2025.