In a recent development, the Association for Comms & Technology (ACT), a prominent telecommunications industry lobby group in South Africa, has issued a stark warning to the government regarding the premature shutdown of legacy 2G and 3G networks. The association cautioned against rushing network operators into "sunsetting" these networks, citing potential adverse effects on millions of users who still rely on older technologies.
Nomvuyiso Batyi, CEO of ACT, emphasized the importance of a carefully planned transition, urging the government to refrain from imposing hard deadlines on operators. Batyi highlighted the need for a balanced approach that considers market conditions and the realities faced by both operators and consumers.
The rationale behind the push for shutting down legacy networks stems from the desire to streamline network management and reduce costs. Newer technologies like 4G and 5G are more efficient in terms of spectrum and energy usage, offering potential savings for operators. However, the transition poses challenges, particularly in terms of revenue loss from users dependent on 2G and 3G services, especially in rural and remote areas.
According to Batyi, the revised deadline of December 31, 2027, set by the government for the 2G and 3G switch-off, risks exacerbating the digital divide in South Africa. Instead of enforcing rigid timelines, Batyi suggested that the government should play a facilitating role by promoting digital skills programs and raising awareness to accelerate the transition to newer technologies.
A critical factor influencing the pace of transition is the affordability of devices, particularly in lower-income segments of the market. High taxes on smartphones, classified as luxury goods, pose a significant barrier to adoption. Batyi highlighted the need for government intervention to make advanced technologies accessible to poorer South Africans.
Lunga Siyo, CEO of Telkom's consumer business, underscored the importance of incentivizing the transition from feature phones to 4G-capable devices. Telkom has employed subsidy schemes to facilitate this shift, relying on subsequent data and airtime usage to recoup costs. However, challenges persist, including the prevalence of prepaid services and consumer propensity to switch operators frequently.
The industry's call to action emphasizes the need for a holistic approach to the transition to newer technologies. By addressing issues of affordability, incentivizing upgrades, and fostering digital inclusion, South Africa can navigate the evolution of its telecommunications landscape while ensuring that no segment of society is left behind.
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