India’s leading telecom operator has urged the Telecom Regulatory Authority of India (TRAI) to advocate for a government policy aimed at phasing out legacy 2G and 3G technologies in India. This move is intended to prevent unnecessary network costs and facilitate the migration of all customers to more advanced 4G and 5G mobile networks. Vodafone Idea (Vi) has echoed Jio’s sentiments and proposed that the government utilize the Universal Service Obligation Fund (USOF) to finance a smartphone subsidy program. This initiative would enable rural populations, who cannot afford modern handsets, to transition to newer technologies like 5G. Currently, approximately Rs 77,113 crore remains unused under the USOF corpus.
Jio emphasized the necessity for a clear policy and trajectory for the complete shutdown of 2G and 3G networks to streamline operations and foster the development of 5G ecosystems. Notably, Jio is the only telecom carrier without a 2G network and has consistently advocated for the migration of its 250 million 2G users to 4G. To facilitate this transition, the company has introduced affordable 4G feature phones and smartphones.
Bharti Airtel, the country’s second-largest telco, did not submit feedback to the regulator on the consultation paper. However, CEO Gopal Vittal previously stated that there are no immediate plans to switch off its 2G network. Airtel emphasizes that such a decision would only be viable once these services cease to generate meaningful revenue. It’s worth mentioning that Airtel phased out its 3G networks approximately four years ago.
Vi announced in its Q3FY24 earnings report that it has completely shut down 3G services across five circles by repurposing spectrum. Vi highlighted the challenge of a significant portion of the population still using outdated 2G technology, hindering access to digital services and newer technologies like 4G and 5G.
Vi proposed that the government subsidize smartphones for consumers transitioning from feature phones to smartphones, thereby bridging the digital divide and enabling rural populations to benefit from advanced technologies. According to Vi, this transition would empower rural communities to participate in the digital economy and enhance their earnings. Jio stressed the importance of spectrum allocation for the development of 5G use cases and urged TRAI to plan auctions for various frequency bands, including the 6GHz band, full C-band, and the 28GHz band. Jio has completed its nationwide 5G rollout, while Airtel aims to do the same by March. However, Vi has faced challenges in launching commercial 5G services due to delayed fundraising efforts.
