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I previously shared that 56% of mobile connections in Africa are still reliant on feature phones, a reflection of the affordability challenges many face across the continent. It’s important to note that Sub-Saharan Africa alone handles 70% of global mobile money transactions, with over 600 million users. A significant portion of these transactions are still performed on basic feature phones.
These simple, durable devices, often limited to calls and text messages, have become indispensable for millions of people. But as 2G networks around the world, including many African countries, are gradually decommissioned, what happens to those relying on these networks?
For users of basic feature phones—especially in lower-income areas—this transition could mean being cut off from essential services. In a continent already grappling with poverty and affordability challenges, this shift could have profound consequences for millions who depend on these devices for everyday tasks.
Across Africa, the decommissioning of 2G and 3G networks is happening at different speeds depending on the country, influenced by technological readiness, infrastructure development, and socioeconomic factors. The impact of this transition is not just about technology but the people who rely on it.
South Africa has a phased plan to shut down 2G and 3G networks by December 31, 2027, to repurpose spectrum for 4G and 5G. Key milestones include prohibiting new 2G/3G devices by September 30, 2024, ceasing activation by December 31, 2024, and starting the shutdown on June 1, 2025. MTN South Africa is encouraging migration to 5G with the affordable MTN Icon 5G smartphone, priced at 2,499 rand ($138).
Nigeria plans to decommission its 2G network by December 2025 as part of efforts to improve network efficiency and promote newer technologies.
Other African Countries are also transitioning from 2G/3G networks, with varying timelines. For example, Vodafone plans to shut down legacy networks in Ghana and Egypt by 2030, though dates may change based on ongoing discussions between governments and operators.
Challenges of the 2G Shutdown
Loss of Access to Mobile Money: Many users, especially in rural and low-income areas, rely on feature phones for mobile money transactions. The 2G shutdown could cut off access to these essential financial services unless users upgrade to 3G or 4G devices.
Limited Options for Upgrading: Despite the availability of affordable smartphones, many low-income individuals still struggle with the cost of upgrading, leaving them unable to access newer technology.
Communication Breakdown: People relying on basic phones for calls and SMS will face communication disruptions, impacting their ability to stay connected with family, businesses, and essential services.
Survival Possibilities and Solutions
Affordable Devices: If governments and telecom companies introduce affordable 3G/4G devices and subsidized plans, it could help bridge the gap for users who cannot afford to upgrade. Telecom companies, like MTN in South Africa, are already introducing affordable 5G-enabled smartphones (e.g., MTN Icon 5G), which could play a key role in encouraging users to migrate from older technologies.
USSD and Voice-based Services: Many mobile services, particularly in financial sectors, are accessed through USSD (Unstructured Supplementary Service Data) codes, which work on basic phones. Expanding voice-based and SMS banking solutions could help ensure that users are not cut off from essential financial services. This would ensure financial inclusion even for those who can’t afford smartphones.
Government and Industry Partnerships: Governments could play a critical role in ensuring the affordability and accessibility of newer devices and data plans. Through partnerships with telecom companies and NGOs, governments could introduce device trade-in programs, subsidies, or zero-rated internet services for basic needs like healthcare and education.
Education and Awareness: Programs that promote digital literacy and help users transition from feature phones to smartphones, even with basic functionalities, would be crucial. Teaching users about the benefits of upgrading, as well as how to use new devices, can make a significant difference in adoption rates.
My 2cents…
If governments, telecom companies, and the tech industry collaborate, solutions are feasible. With measures like affordable devices and expanded USSD services, the transition can be facilitated for those in need.
The central aspect of this transition is that technology should not advance merely for progress; it must benefit the intended users. In Africa, this means ensuring inclusivity as we move toward a more connected and technologically inclusive future.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Prakash Bhudia HOD – Product & Growth at Deriv
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James Strudwick Executive Director at Starknet Foundation
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