Mobile technology lifecycle: the future of 2G networks

Despite the industry’s current focus on mobile broadband services, 69% of global cellular connections still run on 2G networks as of Q3 2013. This is due to the increasing prevalence of the developing world as a proportion of total connections; the developing region is now home to four in every five connections worldwide, and 80% of those mobile connections are 2G-only. In contrast, the proportion of 2G-only connections in the developed world has declined to 30%.

In this research, we present some of the key factors that influence the lifecycle of 2G networks in both developed and developing markets. Our findings show that, throughout the next four years, most mobile operators expect that 2G networks will remain an important asset with some operators having "no plans to switch it off" as 2G is still needed for a number of reasons.

Nevertheless, a group of pioneer operators in advanced and mature mobile markets have already taken commercial decisions to refarm 2G frequencies for 3G/LTE use, and have consequently scaled back procurement of 2G-only network hardware and devices.