Ovum: Thanks to 4G, Carriers Could Shut Down 3G Before 2G

Wireless network carriers’ growing interest in, and deployment of, 4G LTE infrastructure, products and services raises the prospect of shutting down or ‘refarming’ GSM or CDMA spectrum to accommodate growing demand. Determining “the sweet spot” for network closure is challenging, however, according to a new market research report from Ovum. Wireless carriers need to consider the key revenues they derive from machine-to-machine (M2M), voice and roaming when deciding when to close legacy networks to make way for 4G LTE.

“The amount of 2G, 3G, and LTE spectrum an operator has can also affect timing,” Ovum Principal Analyst Nicole McCormick states. Ovum sees some wireless carriers shutting down 3G networks before 2G networks. “2G is still an important source of revenue,” McCormick notes. “LTE provides a better mobile broadband experience than 3G, and with VoLTE, LTE can handle the voice responsibilities of 3G. This points to the possibility that operators opt to close their 3G networks before they close 2G,” McCormick concludes.