RIP 2G
Navigating the end of an era
As the telecommunications landscape continues to evolve, the imminent end of 2G and 3G networks signals a significant shift within the industry. With countries around the world phasing out these networks to free up frequency bands for 4G and 5G, the need for adaption and transformation has never been more urgent. By the end of 2022, 10 countries had already switched off all 2G services. In the United States, three out of the four major mobile operators have completed their 3G network shutdowns. And this trend is not expected to stop here. 172 countries are projected to see at least 90% of mobile subscriptions on 3G, 4G, or 5G networks by 2028. The sunset of 2G and 3G is inevitable to provide better service and features for users, necessitating businesses to align their strategies with this shift.
Implications for major stakeholders
The closure of 2G and 3G networks impacts telecom carriers, phone manufacturers, and content providers alike. Telecom carriers are freeing up spectrum for new technologies and encouraging device upgrades to drive the adoption of newer, more capable mobile networks. Phone manufacturers are also witnessing a significant shift in market preferences. Research reveals that 75% of Indian feature phone users are considering a switch to more affordable 4G and 5G smartphones, driven by limitations such as lack of advanced apps and limited internet access on traditional feature phone devices.
Despite the widespread adoption of smartphones, the feature phone market remains strong. Particularly for those in developing countries, feature phones continue to play an important role in bridging the digital divide given their affordability. Therein lies a delicate balance for mobile industry players to ensure don’t lose in this transition to 4G, while still capturing the opportunities within the US $10.6 billion feature phone industry.
How Cloud Phone technology is addressing the digital divide
For individuals, however, who lack the means to upgrade to smartphones, this transition to newer technologies poses challenges. Many of the cheapest smartphones still cost around US $150, even so-called “budget” smartphones can go up to US $350, a luxury those in the developing world are unable to afford. Cloud Phone technology emerges as a solution to ensure that these individuals are not left behind in the shift to 4G. By bridging the gap between traditional feature phones and internet-enabled devices, Cloud Phone technology democratizes access to the digital world, empowering underserved communities and making internet and app ecosystem access more affordable.
Digital technologies have the potential to bridge the economic and educational disparities still prevalent in many parts of the world. Although developed countries are phasing out older-generation networks to adopt advanced networks like 5G, low-income countries have to work with 2G and 3G networks because of the barriers to 5G deployment, including high infrastructure costs, device affordability, unreliable electricity and regulatory and adoption constraints.
— Purushottam Dhungel (Nepal) speaking on behalf of the Group of Least Developed Countries at a 2023 UN General Assembly Second Committee meeting
Able to run on devices priced as low as US $10–15, Cloud Phone technology enables feature phones to serve as a platform to connect users to key web applications such as YouTube, Facebook, TikTok via a cloud-based engine. The technology not only aids in the transition from outdated networks, but also secures future business opportunities for carriers, phone manufacturers and content providers. By embracing this innovation, businesses can expand their reach, tap into new market segments, and ultimately foster digital inclusivity by making internet access more accessible. Cloud Phone technology ensures that no one gets left behind in the journey towards a more connected and prosperous future.
Cloud up or lose out
Industry players must understand the importance of bringing existing users along on the journey from 2G to 4G, but also recognize the golden opportunity to tap into billions of people who haven’t yet experienced the benefits of smartphones without the steep price tag attached. Smarter companies will capitalize on this opportunity to reach the next billion users, understanding that competition for their loyalty and attention is already heating up. If you don’t act now to transform your business and adapt, you’ll lose out to more aggressive opportunists who see this turning point for the mobile industry. As the sun sets on 2G and 3G networks, businesses must seize the opportunity presented by Cloud Phone technology. Don’t let your business growth set with the sunsetting of outdated networks — it’s time to Cloud Up with the Cloud Phone.
