A “2G Retirement Full Start Conference†opened the 2G retreat work of Henan Zhoukou Unicom. From April 1st, Zhoukou Unicom has closed 2G service options for new users, and adjusted market policies for 2G old users to promote 2G. Users migrate to 4G as soon as possible. On the day of the launch of the conference, Zhoukou Unicom closed 117 2G base stations in two pilot areas.
"After the 2G retreat was included in the performance appraisal of Unicom's company, the 2G retreat work of various local companies was in progress." According to informed sources, "In 2018, the 2G retreat of the provincial company's KPI accounted for 6 points. â€
As a populous province, Henan still has a large number of 2G users. In 2017, the total number of 2G users in Henan Province decreased from 24.54 million to 17.2 million, a decrease of 7.34 million. The number of 2G base stations was reduced from 75,751 to 74,748, and a total of 803 were retired. In contrast, Henan Zhoukou closed 117 base stations on the same day in the pilot area. In 2018, the 2G exit process in Henan Province was accelerating.
However, in the country, there are still 1.57 million 2G base stations, 290 million 2G users at the end of 2017, and massive IoT devices that rely on 2G networks. 2G has a long way to go.
In July 2017, Singapore, Taiwan, Australia, the United States, Canada and other countries and regions have closed or are about to close 2G networks.
Most international operators enter the 3G era 8 years ahead of China, and 4G networks are opened 4 years ahead of schedule. 2G stock users are all transferred to 3G and 4G networks in more than 15 years. In the past two years, a number of international operators have gradually started to shut down 2G networks in order to improve spectrum efficiency and reduce costs.
In China, the Ministry of Industry and Information Technology has already implemented policy loosening on operators. At the end of 2016, the Ministry of Industry and Information Technology has issued the "Reply to agree to China's United Network Communications Group Co., Ltd. to adjust part of the frequency for LTE networking", and agreed to China Unicom's request for re-cultivation of 2G and 3G frequency resources for 4G networks. At the beginning of 2017, China Unicom began to launch 2G retreat work in some provinces.
In June 2017, the Ministry of Industry and Information Technology issued a document permitting operators to deploy NB-IoT systems in the GSM frequency band. Later, China Mobile built a 4G-based NB-IoT network on the original 2G frequency band. 900Mhz and 1800Mhz, which were originally used to deploy 2G networks, are high-quality frequency bands and are also urgently needed resources for operators. At this stage, operators have completed 4G coverage in urban areas, and further radiated deep coverage from urban areas to remote rural areas. High-quality frequency bands can reduce operators' coverage costs and future maintenance costs. It is precisely because of this, during the two sessions this year, Zhao Dachun, deputy of the National People's Congress and general manager of Sichuan Mobile, proposed to fully open the 900M low frequency band for 4G construction, in order to "accelerate the implementation of network poverty alleviation and win the fight against poverty."
On April 3, 2018, China Mobile was granted an FDD license. However, the Ministry of Industry and Information Technology has not issued a notice to permit China Mobile to re-cultivate 2G frequencies for 4G network construction. For China Mobile, the 2G network retreat frequency can only be used for the Internet of Things, not the data service. The spectrum re-farming policy has not been completely loosened.
This may be a policy window reserved by the regulatory authorities for vulnerable operators. China Unicom may be able to recover some of its disadvantages with relatively favorable spectrum re-farming policies.
2G base station grows against the trend"Technically, 2G withdrawal can be achieved in a very short period of time." A China Unicom insider revealed, "But the provinces and users have different networks and it is difficult to make arrangements." All the merchants issued a statement on the withdrawal of the network from the group level, and only the provincial and municipal companies promoted separately.
For operators, the revenue gap between 2G users and 4G users is extremely large. In China Unicom, the ARPU value (average monthly expenditure) of 2G/3G users is only 23.4 yuan, but the ARPU value of 4G users is 63.4 yuan, 170% higher than the former. In China Mobile, the ARPU values ​​of 2/3G users and 4G users are 33.9 yuan and 66.4 yuan respectively, which is also a huge gap.
Operators expect users to migrate as soon as possible. However, the speed of 2G users moving to 4G is slowing down. From 2016 to 2017, the total number of 2G users dropped from 380 million to 290 million, and only about 90 million users were migrated. In the previous year, 2G users migrated more than 180 million. The existing 290 million users are difficult to give up. Local operators are investing in marketing resources when they push back the network, in order to achieve the premise that "users do not lose".
In addition, "although some frequencies are vacated for 4G, in order to ensure call quality and ensure coverage, the number of 2G base stations must be maintained." An industry insider said, "And some remote areas will still build some 2G base stations, after all, GSM The maturity is too high and the equipment is much cheaper."
In addition to operators, high-speed IoT companies are also more dependent on the maturity of 2G networks. “A 2G module may cost more than 10 yuan, but 4G modules are several times more expensive.†A POS machine insider told reporters, “At present, most POS machines use 2G networks.â€
At present, China Mobile alone has 230 million IoT devices, and most of them operate on 2G networks. It should be pointed out that due to the long life cycle of IoT devices, the migration frequency is much lower than the consumer market. Although operators have invested billions of dollars to promote the maturity of the NB-IoT industry chain, there is still a small distance from the leading cellular Internet of Things.
Therefore, from 2016 to 2017, the number of 2G base stations in China has not decreased, but it has increased by 30,000 against the trend, from 1.54 million to 1.57 million. With huge user assets, the operators who pursue spectrum efficiency and expect to complete 2G withdrawals as soon as possible are obviously unable to do so overnight.
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