South Africa’s 2G and 3G ban — MTN to help customers afford 4G smartphones

South Africa wants to ban the type approval and activation of 2G and 3G-only devices by September and December 2024, which could hurt some local retailers.

However, MTN plans to subsidise entry-level 4G devices for those still using 2G or 3G-only devices to make them more affordable.

Stores like Ackermans and PEP list a wide range of 2G and 3G-only devices, while mobile operators like Vodacom and MTN still have many such devices active on their networks.

MyBroadband asked MTN, Vodacom, Telkom, and Ackermans and PEP owner Pepkor how the bans would impact their sales.

MTN South Africa told MyBroadband that over 30% of its prepaid device sales are 2G phones. It added that it is no longer distributing 3G-only devices.

However, it plans to subsidise entry-level 4G smartphones to enable these customers to afford them.

“2G and 3G devices still play a vital role at MTN,” it said.

“We have put measures in place to serve customers who have been utilising 2G devices, some of the measures include increasing the investment towards smart feature devices and continue investing in subsidising 4G entry devices to reduce costs so that our customers can afford to purchase these devices.”

A Vodacom spokesperson said 2G and 3G terminal sales still make up a large portion of the market, primarily driven by customer demand.

“Transitions of this nature have a significant impact on customers, and we are hopeful that Icasa will work with the industry to develop a practical schedule for sunsetting of legacy technologies during its feasibility study, which we expect to commence shortly,” they said.

It said the high demand for 2G and 3G devices in South Africa is primarily driven by challenging economic conditions coupled with high taxation on 4G and 5G smartphones.

“Our recommendation to government is to first engage with industry regarding managing the inflow rate of new 2G/3G devices into the market, and then monitor the rate of attrition of 2G/3G devices on the various networks, before deciding on next steps,” the spokesperson said.

Telkom and Pepkor hadn’t answered our questions by publication.

On 28 May 2024, South Africa’s Department of Communications and Digital Technologies (DCDT) published the Next-Generation Radio Frequency Spectrum policy, revealing preliminary shutdown dates for the country’s 2G and 3G networks.

These included the deadlines for the type approval and activation of 2G and 3G devices.

The prohibition of type approval means the Independent Communications Authority of South Africa (Icasa) will no longer approve new 2G and 3G-only devices, effectively blocking them from being sold locally.

Devices already type-approved in South Africa can still be legally imported and sold.

Following the prohibition of type approval at the end of September 2024, the DCDT has set 31 December 2024 as the deadline for prohibiting the activation of 2G and 3G devices on South Africa’s networks.

South African mobile network operators will start shutting down their 2G and 3G networks from 1 June 2025. The DCDT hasn’t specified which network technology must go first.

“The sequencing for sunsetting of 2G and 3G networks and their related dates will be determined by the Authority subject to conducting an economic and regulatory impact assessment,” it said.

They must be entirely switched off by 31 December 2027.

The department previously said it would be up to individual mobile network operators to decide which network they shut down first.

“The commencement for the shutdown of the 2G and 3G services is 1 June 2025. This deadline is meant to allow mobile network operators some level of discretion and for them to decide which network to switch off first,” it said.

To this end, Telkom previously told MyBroadband that it was prioritising the shuttering of its 2G network, the process for which had already begun.

While it anticipates the 3G shutdown to have an impact on its customers, the mobile operator says it currently carries virtually no traffic on its 2G network.

“We still carry a significant portion of voice traffic on 3G and switching this technology off in an unmanaged manner will have an impact on some of our customers,” it said.