The 2G & 3G switch off market size is expected to reach US$ 28.75 billion in 2020 and is expected to decline to US$ 3.65 billion by 2030; it is estimated to record a CAGR of -18.6% from 2020 to 2030.
In order to meet the demands for how consumers use wireless, the 3G network will be phased out in the US and the telecom industry is investing and reallocating resources to 4G and 5G networks. To do so, support for legacy networks is being discontinued and the 2G and 3G networks are being turned off. The Federal Communications Commission (FCC) has informed consumers that if their mobile phones are over a few years old, they may need to replace their device before their mobile operator shuts down its 3G network to prevent losing service. Mobile companies in the country are shutting down their 3G networks. Telecom companies are doing the same thing to make place for more advanced network services, such as 5G. For instance, UScellular operates a wireless network across ~21 states, counting nearly 5 million mobile customers. In November 2023, UScellular announced it would turn off its 3G CDMA network on January 14, 2024. Separately, Cellcom announced plans to shut down its 2G network by December 2023 after shutting down its 3G network in March. Thus, government regulations and the operators' decision to shut down 2G and 3G will promote 2G & 3G switch off market.
Based on type, the 2G & 3G switch off market is bifurcated into 2G and 3G. The second generation of cellular networks, or 2G, is built on the Global System for Mobile Communication (GSM). 2G offered cellular services, including SMS, multimedia messaging, and digitally encrypted voice chats, to meet the increasing number of mobile phones. Additionally, it optimized the usage of the radio frequency (RF) spectrum, allowing multiple devices to share the same frequency bands. However, the technology is three decades old. Although 2G networks have been improved over time by telecom companies with features such as General Packet Radio Service (GPRS) and Enhanced Data rates for GSM Evolution (EDGE), 2G connectivity cannot keep up with the currently available options. Numerous Mobile Network Operators (MNOs) have initiated the process of discontinuing their 2G networks. In addition, 2G service is now unavailable in several nations. Such instances propel the 2G & 3G switch off market growth.
Based on application, the 2G & 3G switch off market is segmented into message, voice, data and IoT. SMS stands for Short Message Service, also referred to as text messaging. The service allows users to send short texts of ~160 to 224 characters using the 5-bit mode to other mobile devices using the mobile data and cellular network. For the first time, the 2G network enabled text-based data to be transmitted via SMS. This network also offers multimedia messaging (MMS) and picture messages. With 2G, SMS has become one of the means of communication. A normal text message sent to the receiver is stored in separate channels. This process was further continued in the 3G era, too. In the 4G era, things become difficult for SMS. The old switching and transceiver stations used for storing and sending SMS texts are not functional now. A new messaging gateway called IP-SM-GW was introduced. This network communicates with the SMSC to retrieve and send messages instantly. Thus, above reasons propelling 2G & 3G switch off market growth.
2G network was first deployed during the 1990s and was used for voice calls, text messaging, and very low-speed data communications. During the 2000s, a 3G network was deployed, and voice services enabled access to the internet through a mobile phone. However, calls and data are separated in 2G or 3G networks and cannot work simultaneously. During a phone call on a 2G network, the caller could not receive any incoming text messages. The text messages would only arrive after the caller terminates the phone call. Meanwhile, calls and data work in unison on a 4G or 5G network, hindering the growth of 2G and 3G networks, and propelling the growth of the 2G & 3G switch off market.
The 2G & 3G switch off market is segmented based on type, and application. Based on type, the 2G & 3G switch off market is bifurcated into 2G and 3G. Based on application, the 2G & 3G switch off market is categorized into message, voice, data and IoT. By region, the 2G & 3G switch off market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.
AT&T Inc, BCE Inc , China Mobile Ltd, Deutsche Telekom AG, KDDI Corp, NTT Data Corp, Orange SA, Telefonica SA, Telenor ASA, and Vodafone Group Plc are among the key 2G & 3G switch off market players that are profiled in this market study.
The overall 2G & 3G switch off market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the 2G & 3G switch off market. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the 2G & 3G switch off market.
Reasons to Buy
In order to meet the demands for how consumers use wireless, the 3G network will be phased out in the US and the telecom industry is investing and reallocating resources to 4G and 5G networks. To do so, support for legacy networks is being discontinued and the 2G and 3G networks are being turned off. The Federal Communications Commission (FCC) has informed consumers that if their mobile phones are over a few years old, they may need to replace their device before their mobile operator shuts down its 3G network to prevent losing service. Mobile companies in the country are shutting down their 3G networks. Telecom companies are doing the same thing to make place for more advanced network services, such as 5G. For instance, UScellular operates a wireless network across ~21 states, counting nearly 5 million mobile customers. In November 2023, UScellular announced it would turn off its 3G CDMA network on January 14, 2024. Separately, Cellcom announced plans to shut down its 2G network by December 2023 after shutting down its 3G network in March. Thus, government regulations and the operators' decision to shut down 2G and 3G will promote 2G & 3G switch off market.
Based on type, the 2G & 3G switch off market is bifurcated into 2G and 3G. The second generation of cellular networks, or 2G, is built on the Global System for Mobile Communication (GSM). 2G offered cellular services, including SMS, multimedia messaging, and digitally encrypted voice chats, to meet the increasing number of mobile phones. Additionally, it optimized the usage of the radio frequency (RF) spectrum, allowing multiple devices to share the same frequency bands. However, the technology is three decades old. Although 2G networks have been improved over time by telecom companies with features such as General Packet Radio Service (GPRS) and Enhanced Data rates for GSM Evolution (EDGE), 2G connectivity cannot keep up with the currently available options. Numerous Mobile Network Operators (MNOs) have initiated the process of discontinuing their 2G networks. In addition, 2G service is now unavailable in several nations. Such instances propel the 2G & 3G switch off market growth.
Based on application, the 2G & 3G switch off market is segmented into message, voice, data and IoT. SMS stands for Short Message Service, also referred to as text messaging. The service allows users to send short texts of ~160 to 224 characters using the 5-bit mode to other mobile devices using the mobile data and cellular network. For the first time, the 2G network enabled text-based data to be transmitted via SMS. This network also offers multimedia messaging (MMS) and picture messages. With 2G, SMS has become one of the means of communication. A normal text message sent to the receiver is stored in separate channels. This process was further continued in the 3G era, too. In the 4G era, things become difficult for SMS. The old switching and transceiver stations used for storing and sending SMS texts are not functional now. A new messaging gateway called IP-SM-GW was introduced. This network communicates with the SMSC to retrieve and send messages instantly. Thus, above reasons propelling 2G & 3G switch off market growth.
2G network was first deployed during the 1990s and was used for voice calls, text messaging, and very low-speed data communications. During the 2000s, a 3G network was deployed, and voice services enabled access to the internet through a mobile phone. However, calls and data are separated in 2G or 3G networks and cannot work simultaneously. During a phone call on a 2G network, the caller could not receive any incoming text messages. The text messages would only arrive after the caller terminates the phone call. Meanwhile, calls and data work in unison on a 4G or 5G network, hindering the growth of 2G and 3G networks, and propelling the growth of the 2G & 3G switch off market.
The 2G & 3G switch off market is segmented based on type, and application. Based on type, the 2G & 3G switch off market is bifurcated into 2G and 3G. Based on application, the 2G & 3G switch off market is categorized into message, voice, data and IoT. By region, the 2G & 3G switch off market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.
AT&T Inc, BCE Inc , China Mobile Ltd, Deutsche Telekom AG, KDDI Corp, NTT Data Corp, Orange SA, Telefonica SA, Telenor ASA, and Vodafone Group Plc are among the key 2G & 3G switch off market players that are profiled in this market study.
The overall 2G & 3G switch off market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the 2G & 3G switch off market. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the 2G & 3G switch off market.
Reasons to Buy
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the 2G and 3G switch off market.
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations such as specific country and segmental insight highlights crucial progressive industry trends in the 2G and 3G switch off market, thereby allowing players across the value chain to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution
Table of Contents
1. Introduction
2. Executive Summary
3. Research Methodology
4. 2G & 3G Switch Off Market Landscape
5. 2G & 3G Switch Off Market - Key Market Dynamics
6. 2G & 3G Switch Off Market - Global Market Analysis
7. 2G & 3G Switch Off Market Analysis - Type
8. 2G & 3G Switch Off Market Analysis - Application
9. 2G & 3G Switch Off Market - Geographical Analysis
10. 2G & 3G Switch Off Market - Impact of COVID-19 Pandemic
11. Industry Landscape
12. Company Profiles
13. Appendix
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- AT&T Inc
- BCE Inc
- China Mobile Ltd
- Deutsche Telekom AG
- KDDI Corp
- NTT Data Corp
- Orange SA
- Telefonica SA
- Telenor ASA
- Vodafone Group Plc
