SK Telecom is moving to halt new subscriptions for 3G (third-generation mobile communications). Discussions on ending 3G service in Korea, which had remained at the level of policy proposals and reviews, have entered a concrete execution phase. Starting with SK Telecom, the phased retirement of 3G networks with rapidly declining subscribers and talks on reallocating spectrum are expected to gain speed.
On the 13th, ChosunBiz reporting confirmed that SK Telecom has notified the Ministry of Science and ICT of its plan to stop new 3G subscriptions starting in September and is in talks on related details.
Halting new subscriptions is a preliminary step that typically precedes the shutdown of a mobile network. That is because the network can be closed only after blocking the inflow of new subscribers and migrating remaining mobile phones and Internet of Things (IoT) lines to higher-tier networks such as LTE (fourth-generation mobile communications) and 5G (fifth-generation mobile communications). An official at the Ministry of Science and ICT said, "We are discussing the suspension of new 3G subscriptions at the request of SK Telecom."
SK Telecom is said to be reviewing the procedures with the possibility of ending 3G service in mind. However, a specific shutdown date has not been set. While stopping new subscriptions is possible with only a filing by SK Telecom, ending 3G service requires preparing protection measures for existing users and obtaining approval from the Ministry of Science and ICT.
Looking at past cases of ending 2G service in Korea, it took about five and a half to 17 months from halting new subscriptions to actually shutting down the network. KT stopped new subscriptions in April 2011 and fully ended 2G service in March 2012, about 11 months later. SK Telecom ended service in July 2020, about 17 months after halting subscriptions in February 2019, and LG Uplus ended service in June of the same year, about five and a half months after stopping subscriptions in January 2021. Applying this precedent, it would not be physically impossible for SK Telecom to stop new 3G subscriptions in September this year and end service next year. That is why talk of "ending 3G service in 2027" has surfaced inside and outside the industry.
SK Telecom's move is expected to affect KT as well. Currently, only SK Telecom and KT operate 3G networks in Korea. LG Uplus switched directly from 2G to LTE without going through 3G. If SK Telecom begins the process of stopping new subscriptions, KT may also flesh out discussions on ending 3G to achieve expense savings and spectrum efficiency.
According to the Ministry of Science and ICT, as of April, there were 346,011 3G mobile lines in Korea, accounting for 0.6% of all mobile lines. Compared with 729,633 at the end of 2023, that is a 52.6% decrease in about two years and four months. Although subscribers are rapidly declining, 3G base stations and switching networks nationwide must continue operating to maintain service.
The telecom industry sees an early consolidation of 3G networks as a way to improve consumer benefits over the long term. That is because if the expense and spectrum used to maintain an aging network with very few users are invested in improving LTE and 5G quality, more subscribers can benefit from better speeds and call quality. Converting spectrum for 3G to LTE or 5G can also increase data capacity in congested urban areas.
The variable is protecting existing users. Among 3G mobile users are older adults using outdated devices and low-cost plans. As they move to LTE or 5G, carriers must prepare alternative plans and device support measures so device replacement expenses or telecom bill burdens do not increase.
3G-based IoT lines used for elevator emergency calls, vehicle tracking, and payment terminals need more time to transition. In particular, safety-related equipment must complete equipment replacement and verification of normal operation before 3G service ends. Another variable is that the equipment owners and management companies differ, making bulk replacement difficult. Even if mobile subscribers sufficiently decline, if the transition of IoT lines is delayed, the timing of the network shutdown could also be pushed back.
An SK Telecom representative said, "We are reviewing 3G service provision by comprehensively considering market conditions and the user environment."