THE DAYS OF 2G ARE NUMBERED

2G networks, relics of the heroic age of mobile telecommunications, are still in operation today—and they still have millions of users. At the same time, shutting them down raises a number of issues that need to be resolved.

Living History

Introduced in 1994, 2G was the first truly “real” digital mobile technology.
“It is indeed unusual for a 30-year-old system to still be with us, but 2G is a well-designed technology. It is simple, but it works, and although it was originally designed for voice communication, it includes minimal data transmission capabilities that are still perfectly sufficient for certain use cases today—not to mention that the required devices are extremely cheap,” explains Péter Kollár, Director of the Frequency Management Directorate at the National Media and Infocommunications Authority (NMHH), highlighting the secret of its (technological) longevity.

Wasteful and Expensive

Why, then, does it need to be phased out? Why not simply let it fade away naturally?
On the one hand, mobile communications have changed radically since 1994: data transmission has taken center stage, with far more dynamic growth expected than in voice communication. In this area, later technologies are far superior to 2G.

Mobile operators have a clear interest in shutting down their 2G networks. The more complex a network is—the more “Gs” it contains—the more expensive it is to operate. At present, service providers are running 2G, 4G, and 5G networks simultaneously. (They are not operating 3G anymore; the reasons for this will be discussed shortly.) Maintaining 2G is costly and wasteful, and no operator likes to squander its most valuable resource—available spectrum—on an inefficient technology, explains Péter Kollár. In Hungary, data traffic is continuously increasing, so every available frequency is needed to serve it. Capacity can be expanded by reallocating frequencies currently used for 2G to 5G.

Another issue is energy efficiency. 2G is wasteful in its use of energy, both in end-user devices and within the network itself. In telecommunications, one key technical metric is how many bits can be transmitted per Hertz of frequency using a unit of energy. In this respect, 4G—and especially 5G—perform far, far better, with differences amounting to several orders of magnitude.

In the Hands of Millions

At the same time, phasing out the technology and shutting down the networks will not be easy. It is still widely used by both residential and corporate subscribers. According to NMHH data from last October, 1.9 million devices were in use that supported only 2G, 3G, or non-VoLTE-capable 4G technology; 70 percent of these—1.3 million devices—were in the hands of residential users.

Another important area of use is machine-to-machine (M2M) communication based on 2G data transmission capabilities. According to last year’s data, nearly two-thirds (61 percent) of M2M SIM cards handling traffic were still using 2G. The largest user base consists of devices issued under the Gondosóra program: according to government announcements, their number has already exceeded 950,000, with a target of reaching one million by the end of the year. In addition, there are around 650,000 smart meters; 300,000–400,000 remote monitoring devices (alarms, elevator emergency call systems, fire alarms, GPS tracking); and more than 200,000 online cash registers. Beyond these, nearly half a million other M2M devices are in operation, such as industrial monitoring and production control applications, mobile POS terminals, vending machines, and ATMs equipped with mobile SIM cards.

All of these users will need to be convinced to migrate to one of the newer technologies. In the case of residential users, persuasion may be sufficient, while in certain segments regulatory enforcement may also come into play. For example, the Hungarian tax authority (NAV) has stipulated that from 2028 onward, 2G cash registers may no longer be used.

“Forever” Is Not an Option

The final shutdown of 3G networks two years ago was relatively straightforward because 2G was still available as a safety net. If someone did not replace an old device, they essentially noticed nothing and could continue making calls as before (although mobile internet users may have experienced service disruptions). Even so, a long and thorough information campaign was carried out, and discounted device replacement programs were used to encourage the public to switch, recalls Péter Kollár.

In the case of 2G, however, there will be no safety net at all. To ensure service continuity, replacing 2G/3G and non-VoLTE-capable 4G phones—as well as 2G/3G M2M devices—will be unavoidable. In other words, anyone who does not switch in time will be left without voice and data communication once the 2G network is shut down.

From Constraint to Opportunity

As with any technological transition, the shutdown of 2G networks also presents opportunities for introducing new services. This is obvious when replacing a smartphone, but upgrading a 2G sensor, M2M device, or modem to 4G or 5G can also unlock numerous new possibilities. Smart meters, for example, could transmit data as frequently as every hour, enabling usage analyses and even the development of new tariff systems that encourage electricity consumption outside peak hours.

“When people ask me when the shutdown of 2G networks will happen, I always say that I don’t know—but I am certain they will not operate forever. The earliest possible date might be around 2030, but preparation must begin now regardless. For the time being, NMHH’s goal is to raise awareness. We want everyone to realize that the days of 2G are numbered. If a utility provider wants to procure smart meters, they should not specify 2G modems, and if a factory is modernizing its sensor network, it should be thinking in terms of 4G or 5G technology,” says Péter Kollár.

Scenarios

Based on the above, three possible scenarios can be envisaged for shutting down 2G. The first is a Europe-wide, coordinated phase-out of 2G (and, where it has not yet happened, 3G) networks by authorities and service providers. The situation would be greatly simplified if European regulators could reach an agreement while ensuring a minimum level of necessary service.

The second option—continues Péter Kollár—is what happened in the case of 3G: domestic service providers conduct cost–benefit analyses and independently decide when to shut down their networks. The third—and perhaps most likely—scenario is the shared network solution.

In this case, one operator undertakes to continue operating the 2G network and offers it to the others on a market basis. In Hungary, the first step in this direction has already been taken: Magyar Telekom has reached an agreement with Yettel under which, from early 2026, Yettel will operate the radio network handling 2G calls for Telekom. “Just as three networks became two, there is nothing to prevent two from becoming one. Then only that single network would need to be maintained until shutdown can occur with the least possible social and economic pain—perhaps sometime around 2032,” adds Péter Kollár.

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