Singapore decides to turn off 3G waves to reserve frequency spectrum for 5G development

Accordingly, Singapore mobile operators including Singtel, StarHub and M1 plan to stop providing 3G services to their customers by the end of July 2024, marking the end of third-generation (3G) mobile technology after nearly 20 years of operation in the country.

As of April 2023, nearly 99% of Singapore's mobile subscribers are currently using 4G or 5G technology, with 3G subscribers accounting for only about 1% of total mobile subscribers in the country, according to IMDA figures.

The regulator explained that after 3G is shut down, local operators will be able to acquire more spectrum to provide 5G services.

“Before discontinuing 3G services, mobile network operators must ensure that their remaining 3G subscribers, both consumers and enterprises, have a smooth transition to 4G/5G networks. This one-year transition period is designed to allow mobile operators to fully engage and migrate their remaining 3G subscribers before discontinuing 3G services,” Singapore’s telecommunications regulator IMDA said.

Mobile network operators must provide users with the option to switch their service plans to 4G with equivalent or better service terms and offer mobile phone options at different price points. Business customers must be supported to switch to 4G or alternative services with minimal disruption, IMDA said.

From February next year, retailers will also not be allowed to sell 3G mobile phones or 4G models that require 3G networks for voice calls to the domestic market.

In a joint statement issued on July 26, Singapore’s three mobile operators said they have launched various initiatives to urge their 3G subscribers to migrate to 4G and 5G networks. Further measures will be taken in the coming months to inform these customers about the transition and provide assistance to those who need assistance with the transition.

These customers include those using 3G-only mobile devices or early 4G models as well as those still using 3G-only SIM cards.

The growing adoption of 5G services in Singapore is expected to boost the mobile data segment in the country, which is set to drive mobile service revenue at a compound annual growth rate (CAGR) of 3% from 2022 to 2027, according to a report by global data analytics firm GlobalData (UK).

The report also notes that 5G subscriptions will surpass 4G subscriptions by 2025 and are expected to account for 76% of total mobile subscriptions by the end of 2027. This growth in 5G subscriptions will be driven primarily by the ongoing expansion of mobile operators’ 5G networks and the need for commercial 5G adoption to support the deployment of Internet of Things (IoT) devices as well as smart city applications.

Around the world, countries are taking different approaches to shutting down 2G and 3G, while most countries in Europe tend to shut down 3G before 2G, while in Asia, countries tend to shut down 2G before 3G. Meanwhile, in some regions of the world such as Africa, where people's living standards are still low and 4G devices are quite expensive compared to the living standards of people here, the 2G network continues to be maintained to serve basic connections such as voice calls and text messages.

The shutdown of 2G and 3G will allow mobile operators to reduce the burden of operating costs of legacy technologies, optimize network management, upgrade infrastructure to facilitate the growing adoption of 4G and 5G, and have the opportunity to migrate traditional telecommunications services to data platforms. On the other hand, the frequency spectrum used for 2G and 3G will be reused for 4G and 5G networks to increase the overall capacity and coverage of 4G and 5G networks, creating enhanced user experiences and opening up a new generation of mobile connectivity.

Meanwhile, according to the recently released “Mobile Economy Asia-Pacific 2023” report by the Global Mobile Operators Association (GSMA), 5G is expected to support 41% of mobile connections in Asia-Pacific by 2030, up from 4% this year. The region will have 1.4 billion 5G subscriptions by the end of 2030, with adoption driven by falling prices for 5G-enabled mobile devices and rapid network expansion across several markets.

While mature markets such as Australia, Singapore and South Korea are leading global 5G mobile innovation, other regional markets still face barriers that impact mobile access and usage.

The GSMA report notes that mobile internet services remain out of reach for 47% of the population in Asia-Pacific, lagging behind other global markets such as China and Latin America. It cites a lack of digital skills, especially among older populations, affordability of devices and services, and concerns about online safety as some of the factors hindering adoption.

The total number of mobile subscriptions in Asia-Pacific will increase from 400 million to 2.11 billion by 2030. Mobile penetration will increase to 70%, however, this is lower than the global average of 73%, according to GSMA.

The mobile industry contributed $810 billion to the Asia-Pacific economy last year, a figure that is expected to reach $990 billion by 2030. 5G alone will add more than $133 billion to the region's economy by 2030.

In our country, Viettel is the first network operator to implement a nationwide 3G network shutdown with a scale of 35,000 stations in 2022. Compared to the world, Viettel is one of the few networks to implement 3G network shutdown. Network quality and customer service experience after 3G shutdown remain stable and growth efficiency is maintained. After shutting down 35,000 3G broadcasting stations, Viettel reserved this frequency to develop 4G due to the rapid increase in customers' demand for high-speed data.