South Africa's 2G/3G switch-off timeline raises industry concerns

The South African government's proposal to shut down 2G—and 3G—networks by the end of 2027 has sparked debate. The Association for Comms and Technology (ACT), representing six of the largest telcos in the country, has voiced strong objections to the imposed deadlines.

ACT argues that the transition should be industry-led to prevent potential disruptions and economic burdens on consumers and businesses reliant on these legacy networks.

In February, the communications ministry set a timeline for the phased shutdown of 2G and 3G services. According to the plan, the regulator Icasa must cease approving 2G- and 3G-only devices by September 2024.

Operators are to stop activating such devices by the end of 2024, and a complete shutdown of 2G and 3G infrastructure is expected by December 2027. However, ACT's CEO Nomvuyiso Batyi has argued that this timeline is "unnecessary" and should be reconsidered. 

“There is no rush to set a deadline, neither is there a requirement in law or otherwise. [Government should] allow the industry to run the process and report to the regulator, Icasa [on their progress],” Batyi stated in a recent exchange with TechCentral.

One of the primary concerns raised by ACT is the potential impact on consumers, especially those in rural areas and lower-income segments.

In rural communities, 2G networks are still extensively used due to the higher cost of building towers in these areas and the predominance of 2G and 3G handsets among residents. These older handsets are significantly cheaper, with 2G phones available for as little as R150, compared to the cheapest 4G handsets starting at around R1,000. 

“Right now 2G [phones] are the cheapest handsets, you can even get one for R150 – if not less. But the cheapest 4G handset, if it’s not on special, starts at just above R1 000. If you think of our unemployment rate and the people that rely on social grants, there is no way they can afford that,” Batyi said.

Additionally, the classification of 4G smartphones as luxury goods results in a 15% VAT and an additional 7% duty, further inflating their prices. This taxation framework needs reevaluation to make modern devices more accessible to the broader population.

Beyond consumer handsets, many machine-to-machine (M2M) systems in South Africa still depend on 2G networks. State-owned logistics operator Transnet, for instance, uses components reliant on 2G for their communications.

Replacing these systems would impose significant costs without delivering equivalent benefits. The vehicle tracking industry also faces similar challenges, with many tracking devices still dependent on 2G technology.

The government’s rationale for the shutdown centers on the need to free up spectrum for newer technologies like 4G and 5G, which offer better efficiency and potential economic benefits. In September 2022, Communications and Digital Technologies Minister Khumbudzo Ntshavheni raised advancing technological infrastructure for economic growth

“Acknowledging that spectrum is a finite resource, the adoption of more advanced technologies for economic growth must be matched by a deliberate program to retire old technologies to ensure more spectrum is made available for the country to achieve our objective of offering all South Africans high-speed broadband,” Ntshavheni stated.

However, ACT warns that hastily implemented shutdowns could widen the digital divide, disproportionately affecting poorer communities and exacerbating existing inequalities. They advocate for a more measured, industry-led transition, supported by government initiatives to enhance digital skills and awareness among the population.

Drawing parallels with South Africa's protracted digital TV migration, Batyi cautioned against setting arbitrary deadlines without considering the socioeconomic context and readiness of the market. The digital migration, initially expected to be swift, has taken over 14 years. This shows the potential pitfalls that could come with rushed transitions.

“Sometimes we don’t learn lessons. We know from the digital migration that the industry and South African consumers take their own time to get rid of devices. People keep their old TV sets or phones until they break and there is nothing that can be done. We also keep them because we don’t have a lot of disposable income. Its almost as though deadlines are arbitrarily set and no one is looking at the impact of what will happen,” Batyi explained.

The debate over South Africa’s 2G and 3G shutdown underscores the complex interplay between technological progress and socioeconomic realities. While the government aims to advance the country’s digital infrastructure, industry voices like ACT urge caution and a more gradual, collaborative approach.

Balancing perspectives will be crucial to ensure that the transition benefits all South Africans without leaving the most vulnerable behind.