South & Central America 2G & 3G Switch Off Market Forecast to 2030 - Regional Analysis - by Type and Application

The South & Central America 2G & 3G switch off market was valued at US$ 13.05 billion in 2020 and is expected to reach US$ 1.86 billion by 2030; it is estimated to register a CAGR of -17.7% from 2020 to 2030.

Rising Digital Transformation Across SME's Fuels South & Central America 2G & 3G Switch Off Market

Digital transformation across SMEs is presenting a unique opportunity for the 2G and 3G switch off market. As these businesses embrace the digital era, they are increasingly adopting modern technologies, such as 4G and 5G networks, to streamline their operations and enhance their connectivity. This shift towards advanced networks is driving the need for the decommissioning of outdated 2G and 3G infrastructure.

SMEs are recognizing the benefits of faster and more reliable data transfer, improved network coverage, and enhanced capacity that come with newer network technologies. This realization is prompting them to upgrade their communication systems, making the 2G and 3G networks obsolete.

Moreover, the digital transformation journey of SMEs also opens up opportunities for companies in the switch off market. These companies can offer services like network infrastructure decommissioning, equipment recycling, and network migration solutions. They can help SMEs smoothly transition from legacy networks to more advanced ones, ensuring minimal disruptions to their business operations. Thus, such rising digital transformation across SMEs creates opportunities for using higher networks and switching off the 2G and 3G networks.

South & Central America 2G & 3G Switch Off Market Overview

The South & Central America 2G & 3G switch off market is segmented into Brazil, Argentina, and the Rest of South & Central America. According to the GSM Association, uptake of 4G in the region has more than doubled in between 2015-2020, with more than 410 million connections in 2021. This growth is projected to continue till 2024 as consumers increasingly transfer to 5G plans. In June 2022, seven countries in the region launched commercial 5G services.

The modern adoption rate of 5G services is ~1% of total 5G connections, but this is expected to reach 11% by 2025. Several regional network operators are switching off the 2G and 3G networks to re-purpose the spectrum and provide 4G. For instance, as of November 2022, Tigo confirmed that it switched off its 2G network in Colombia, taking ~2,000 1900 MHz sites offline and freeing up the spectrum, which will be re-purposed and used for its 4G network.

As of March 2022, Claro also announced the shutting down of its 2G network in Colombia, following in Tigo's footsteps. Further, Movistar plans to do the same in Chile in the second half of 2023, while Telecom will shut down 3G in Argentina. The mass implementation of 4G and the entry of 5G are beginning to influence these decisions.

South & Central America 2G & 3G Switch Off Market Segmentation

The South & Central America 2G & 3G switch off market is categorized into type, application, and country.

• Based on type, the South & Central America 2G & 3G switch off market is bifurcated into 2G and 3G. The 3G segment held a larger market share in 2020.
• In terms of application, the South & Central America 2G & 3G switch off market is segmented into message, voice, data, and IoT. The data segment held the largest market share in 2020.
• By country, the South & Central America 2G & 3G switch off market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America 2G & 3G switch off market share in 2020.

AT&T Inc, Deutsche Telekom AG, KDDI Corp, NTT Data Corp, Orange SA, Telefonica SA, and Vodafone Group Plc are among the leading companies operating in the South & Central America 2G & 3G switch off market.