Vietnam nears 2G shutdown deadline with 11 million users urged to upgrade devices

At a seminar on the 2G shutdown held by the Authorities of Telecommunications under the Ministry of Information and Communications on Thursday, Deputy Director of the authorities Nguyen Phong Nha reported that the number of subscribers using only 2G has rapidly decreased recently, but still remains “relatively large,” at about 11 million.

By Sept. 15, when the 2G shutdown is implemented, these subscribers risk becoming inoperative if they do not upgrade their devices.

Most of these mobile users have upgraded to SIMs that support 3G and 4G. The remaining issue is their devices, which requires relevant agencies and network operators to implement measures to inform and support users in switching devices.

Nguyen Phong Nha, Deputy Director of the Authorities of Telecommunications under the Ministry of Information and Communications, speaks at a seminar on July 18, 2024. Photo by VnExpress/Anh Dung

One reason for the remaining high number of 2G subscribers is the cost barrier faced by people when purchasing new devices. For residents in remote and isolated areas, even a few hundred thousand Vietnamese dong (VND100,000 equals US$3.95) for a new device is a significant issue.

Moreover, despite the ban on 2G devices entering Vietnam since 2021, many such products are still circulating in the market.

From March, network operators have been instructed not to allow these devices to access the network, significantly reducing its number. However, according to Nha, stores still have leftover stock and there may be instances of price reductions to clear stock and recover investments in the coming months. If consumers purchase these devices, they not only lose money but will also be unable to use them after Sept. 15.

“The network operators have already had solutions, although they can’t support 100%,” stated Nha. “For people in difficult circumstances or come from poor households, the Ministry of Information and Communications has worked with provinces and cities about using legal funds and sponsorships to coordinate with network operators to provide support. Some provinces have already implemented this.”

At the seminar, retail systems like Mobile World, Di Dong Viet, phone manufacturer Oppo, and network operators VNPT, Viettel, and MobiFone reported that they also have policies to assist users in upgrading devices, such as importing more 4G products at affordable prices, subsidizing up to 50% for some products to help users upgrade.

An elderly person in the central costal city of Da Nang gets accustomed to using a smartphone. Photo by VnExpress/Nguyen Dong

Viettel Telecom, the operator with the highest number of subscribers and also the most 2G-only subscribers, reported that in the first six months of the year, it had implemented subsidies and sales to communes across Vietnam, helping convert over 2 million subscribers to 4G.

However, with a large customer base in rural and mountainous areas, there are still 5-6 million subscribers needing to switch, posing a challenge in terms of the market’s capacity to supply devices.

“I propose that suppliers increase production,” said Nguyen Trong Tinh, Deputy General Director of Viettel Telecom. “This is a decisive factor in whether the 2G transition will be successful. I hope the supply chains of end devices ensure sufficient quantities to support users.”

Around 40 countries across the world have completely stopped 2G, with the rest aiming to do so by 2028-2030. Vietnam will cease 2G technology this year, retaining a part only to support devices without VoLTE, then completely shut down the network in 2026 before halting 3G technology in 2028.

Stopping 2G technology helps operators become more efficient in exploiting the network, reducing costs, increasing the efficiency of frequency use, station resources, and power. By doing so, they can focus resources on advanced technologies like 5G.