As major countries like the United States and Japan phase out third-generation mobile communication (3G) services, South Korea's telecom industry is also moving towards discontinuing 3G services. However, the transition is facing challenges due to user protection issues. Although the number of mobile phone users has sharply declined, it is difficult to quickly relocate industrial lines used for emergency calls in vehicles and elevators.
The telecom industry reports that maintaining the 3G network costs over 100 billion won annually. To encourage investment in expanding 5G standalone mode (SA), industry leaders are calling for government measures to facilitate a smooth generational transition, similar to practices in other countries.
According to the telecom industry on September 22, SK Telecom (SKT) and KT are estimated to spend 40 billion won and 70 billion won, respectively, on 3G network maintenance. As of the end of June, the Ministry of Science and ICT reported that there are 328,124 3G mobile lines, accounting for about 0.5% of total lines. Including business-to-business (B2B) and Internet of Things (IoT) lines, the proportion of 3G lines approaches 2%.
SKT announced plans to halt new 3G subscriptions last month, and KT is also planning to stop new 3G sign-ups.
However, even with new subscriptions blocked, existing industrial devices remain a concern. To connect emergency communication devices in vehicles or elevators to other networks, operators must replace the devices and ensure that calls function properly after the transition. Simply stopping new subscriptions will not eliminate existing lines.
IoT sensors transmit very little data, which means users see little incentive to transition from 3G to LTE or 5G. Consequently, the question of who will bear the costs of replacing already installed IoT sensors during each generational shift has emerged as a new concern.
Most countries abroad have already terminated 3G services. According to the Global System for Mobile Communications Association (GSA), as of the end of June, 313 instances of 2G and 3G service terminations have been completed or are planned across 89 countries and regions.
In the United States, AT&T ended its 3G service in February 2022, followed by T-Mobile in July and Verizon in December of the same year. In Japan, SoftBank plans to terminate its 3G service starting in April 2024, while NTT Docomo completed its 3G service in March. In the UK, major carriers Vodafone, EE, and Three are set to complete their 3G network shutdowns in 2024.
Unlike foreign operators who waited until the end date to shut down their networks, they prepared for device transitions before the shutdown. For instance, NTT Docomo announced its termination plans in 2019 and began notifying 3G users about the need to replace their devices last year. The UK’s communications regulator, Ofcom, also informed telecom companies and IoT device and service providers about maintaining services and transitioning devices ahead of network shutdowns.
The South Korean Ministry of Science and ICT has stated that discussions regarding the 3G shutdown will proceed with user protection as a priority, aiming for a predictable timeline. However, they maintain that the number of lines, including IoT, must be reduced to a certain level before proceeding.
While other countries have encouraged device replacements ahead of shutdowns, South Korea is considering determining the shutdown date only after device replacements are completed. This requires aligning the line information held by telecom companies with the equipment information held by vehicle and elevator operators to identify replacement targets. Determining who bears the costs of the transition remains a significant concern.
Meanwhile, the timeline for telecom companies' investments in 5G SA is approaching. The Ministry of Science and ICT is pushing for the transition of 5G base stations to SA by the end of the year. KT has already commercialized SA, while SKT and LG Uplus are preparing for commercialization within the year. The longer the transition of industrial 3G lines is delayed, the more costs telecom companies will incur in maintaining the existing network while expanding the new one.
Experts emphasize that while user protection is important, government support is also necessary for the generational transition in telecommunications. They argue that specific targets need to be established regarding the extent of user protection and the reduction of subscriber numbers and IoT devices.
Lee Seong-yeop, a professor at Korea University's Graduate School of Technology Management, noted, "In South Korea, the process of terminating 3G services is taking longer than in other countries because there is a strict focus on ensuring that users can transition to 4G and 5G. If sufficient transition measures have been implemented to protect users, the shutdown schedule should be discussed more flexibly."
* This article has been translated by AI.
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