2G/3G Shutdown IIoT Impacts

I. The Global 2G/3G Shutdown: An Irreversible Technological Transition

Since GSM (2G) networks were commercially launched in the 1990s, mobile communications have evolved over three decades. 2G laid the foundation for mobile telephony, while 3G (UMTS) brought mobile internet to the masses. However, with 4G becoming mainstream, 5G being widely deployed, and 6G research accelerating, older generations are gradually exiting the stage worldwide.

Core Drivers: Wireless spectrum is a non-renewable and scarce resource. The operational costs of maintaining 2G, 3G, 4G, and 5G networks concurrently are escalating for operators. Re-farming low-band spectrum (e.g., 900 MHz) from 2G/3G to 4G/5G can significantly improve spectral efficiency and network coverage quality.

The global 2G/3G shutdown has entered a critical acceleration phase. According to GSA statistics, approximately 76 2G/3G networks were shut down globally in 2025, a 40% increase from the previous year. By the end of Q2 2026, 313 completed, planned, or ongoing 2G/3G network shutdown projects had been identified across 89 countries and regions.

A Landmark Event: On March 31, 2026, Japan's NTT Docomo shut down its 3G network – the world's first commercial 3G network, launched in 2001. With this, Japan's 2G and 3G networks have fully withdrawn.

II. Shutdown Progress Comparison Across Regions

In China, 2G/3G network shutdowns are progressing in an orderly manner across various provinces and cities. Zhejiang Unicom issued an announcement in May 2026 that its 3G network would cease service entirely on June 15, 2026. Mobile branches in Jiangsu, Zhejiang, and other provinces have also announced the orderly shutdown of their 2G networks. The Ministry of Industry and Information Technology (MIIT) has mandated that operators "plan early and inform early" to advance network shutdowns while fully safeguarding user interests.

III. Direct Impacts on Industrial IoT Devices

The 2G/3G shutdown poses particularly significant challenges for Industrial IoT (IIoT). The reasons include:

Long Equipment Lifecycles: Industrial equipment (e.g., smart meters, POS terminals, elevator emergency call systems, vehicle trackers) typically has service cycles of 5 to 10 years or more. Many early IoT devices rely solely on 2G/3G communication and are costly and difficult to replace.

Large Installed Base: A vast number of POS terminals, industrial sensors, and smart meters have been deployed since the 2G era. These terminals have high network "stickiness," and replacement involves the entire chain of hardware, software, and data plans.

Safety-Critical Applications: Safety-related applications such as elevator emergency calls, home alarm systems, and vehicle eCall systems may cease to function if they rely on 2G/3G networks after shutdown, requiring priority upgrades.

IV. Response Strategies for Industrial Communication Equipment Manufacturers

As an industrial wireless communication equipment manufacturer, the following strategic directions should be considered in response to the 2G/3G shutdown trend:

1. Full Migration of Products to 4G/5G

• Cellular Module Upgrades: Phase out pure 2G/3G modules in favor of 4G Cat.1, Cat.4, and 5G RedCap technologies. Cat.1 modules offer moderate cost and complete coverage for 2G/3G legacy applications (e.g., smart meters, POS) with good power efficiency.

• Dual/Multi-Mode Design: During the transition period, new devices can support both 4G/5G and 2G/3G to ensure operability across various network environments, giving customers a buffer.

2. Focus on 5G RedCap Technology

5G RedCap (Reduced Capability), introduced in 3GPP R17, is specifically designed for IoT applications. It offers moderate bandwidth, controllable power consumption, and lower cost than standard 5G modules, making it ideal for replacing 2G/3G IoT deployments. The enhanced eRedCap in R18 will further reduce terminal complexity and cost.

3. Strengthen Industry Chain Collaboration

• Maintain communication with network operators to stay informed about regional shutdown timelines, enabling proactive customer advice.

• Collaborate with module and chipset manufacturers to ensure products support mainstream global bands and network standards.

• Pay close attention to VoLTE/VoNR voice solutions to ensure the reliability of voice services like emergency calls on 4G/5G networks.

V. Conclusion

The 2G/3G shutdown is a historical inevitability of technological evolution. For Industrial IoT, this is not an endpoint but an opportunity for transformation – pushing the industry from merely "functional" to "high-performance," from low-speed, low-efficiency narrowband connections to high-speed, intelligent broadband connectivity.

For industrial communication equipment manufacturers, proactively developing new products based on 4G Cat.1 and 5G RedCap, and offering customers a smooth upgrade path, is key to seizing the opportunities presented by this wave of technological replacement.