During a working session with the ITU Secretary-General, Minister Nguyen Manh Hung presented Vietnam's initiative to shut down 2G networks in 2023, once the density of these subscribers drops to about 5%.
According to calculations and proposals from network operators, when the number of subscribers using this technology is only about 5%, it will be the appropriate time to turn off the old technology.
Vietnam will shut down 2G networks in 2023
Speaking with the Secretary-General of the International Telecommunication Union (ITU) Houlin Zhao within the framework of the Digital World event on October 13, Minister of Information and Communications (MIC) Nguyen Manh Hung shared Vietnam's approach to rapidly universalizing smartphones to 100% of the population. Accordingly, Vietnam will shut down 2G networks in 2023 when the density of these subscribers falls to about 5%. Along with the shutdown, network operators will subsidize handsets for 2G subscribers. This is also a model that ITU member countries can reference for the process of phasing out legacy technologies.
Each country has different methods and objectives when shutting down 2G and 3G networks. However, if a carrier wants to deploy the new 5G mobile technology, simultaneously maintaining and operating too many parallel technologies like 2G, 3G, and 4G will incur massive costs and result in operational inefficiency. Therefore, shutting down old technologies is necessary to optimize operations and allocate resources and radio frequency bands for new technologies, meeting the development goals of both the carriers and the nation. Globally, some countries shut down their 2G networks first, while others prioritize shutting down 3G.
Vietnam has chosen the option to turn off 2G to promote the objectives of the National Digital Transformation Program to 2025, with an orientation to 2030, which the Prime Minister approved: universalizing 4G/5G mobile networks and smartphones to every Vietnamese citizen. This revolution will rapidly advance e-government, the digital economy, and the digital society, serving as a critical driving force for Vietnam to develop faster and stronger.
When 100% of the population uses smartphones, it will drive richer digital services and increased data consumption, providing network operators with additional revenue and new growth opportunities.
According to calculations and proposals from carriers, when the number of legacy technology subscribers is only about 5%, it will be the right time to shut down the old technology.
The goal of universalizing smartphones for 100% of the population
To prepare for the 2G shutdown, the MIC has also issued a National Technical Regulation on terrestrial mobile communication terminal equipment. Accordingly, mobile terminal devices manufactured in or imported into Vietnam must support 4G technology or higher.
According to a report by the market research institute GfK (Growth from Knowledge), the Vietnamese market consumes over 20 million mobile phones annually on average, of which about 60% are smartphones and 40% are feature phones (8 million units). With 25.6 million subscribers currently active on the network using devices that only support 2G/3G, based on the average device lifecycle (about 3 years), these devices will gradually be phased out of the network as the supply ceases.
The policy to subsidize smartphones for poor and near-poor households has been included in the draft Public Telecommunications Program for the 2021-2025 period submitted to the Government. Under this program, it is expected that 2.1 million smartphones will be provided to poor and near-poor households nationwide.
Thus, the process of encouraging 100% of the population to use smartphones is being accelerated.
In addition, the MIC is urging carriers to deploy and enable the VoLTE feature on smartphones to be ready to discontinue the old technology. This technology enables high-definition (HD) voice calls over the 4G network platform, bringing a new, premium experience to customers. The goal is that by the end of 2021, 50% of users with VoLTE-supported phones will be able to utilize the service.
With the implemented policies and solutions positively impacting the growth of smartphone users, statistics from market research firm Statista project that Vietnam will be among the Top 10 countries with the highest number of smartphone users globally, reaching 63.1% of the population by 2023.
Network operators are pushing for the 2G shutdown
Up to this point, some network operators have already begun turning off low-traffic 2G base stations and launching promotional programs to encourage customers to switch to 4G SIMs. To accelerate the digital transformation process, certain localities have volunteered to pilot the discontinuation of old technologies and promote smartphone usage, such as Da Nang city and the Co To island district of Quang Ninh province. Furthermore, many localities have proposed the early commercialization of 5G in their areas to serve as a foundation for digital infrastructure.
Sharing his perspective on the proposal to shut down 2G in 2023 when Vietnam's 2G subscriber density drops to about 5% and providing terminal equipment support for subscribers, Mr. Tao Duc Thang stated that Viettel supports the MIC's 2G shutdown initiative. The goal of the 2G shutdown is to drive users toward smartphones and data usage, which will foster the digital economy and digital society in the future.
"Currently, the proportion of 2G subscribers on the Viettel network remains at about 20%, but the decline rate of 2G subscribers is quite fast. Viettel is also actively encouraging subscribers to transition to data services," Mr. Tao Duc Thang said.
Echoing Viettel's view, Mr. To Manh Cuong, General Director of MobiFone, noted that MobiFone also supports the MIC's perspective on the 2G shutdown roadmap. Currently, in some areas, the number of 2G subscribers has sharply decreased. Therefore, MobiFone will shut down the old technology to boost investments in the 5G network in the future.
Speaking to VietnamNet on this issue, a VNPT representative affirmed that turning off 2G will reduce operation and maintenance costs for carriers. Network operators can reallocate these frequencies for new technologies to better serve customer needs. The VNPT representative also mentioned that the percentage of subscribers using 2G services is currently dropping significantly, while the number of 5G smartphone users is rising rapidly. This is a favorable trend for the 2G shutdown. However, selecting the right timing for the shutdown is crucial as it will help carriers minimize the costs of subsidizing terminal devices for customers.
Thai Khang
Source: Shutting down 2G in 2023 to prepare for the digital economy and digital society