GSMA Intelligence reports that spectrum assignments in key bands, including 900 MHz, 1800 MHz, and 2100 MHz—commonly used for 2G and 3G networks—are set to expire in over 30 countries by 2025. Additionally, 61 planned network phase-outs for 2G and 3G technologies are expected within the same timeframe.
Legacy Network Sunsets
2G and 3G spectrum bands are ideal candidates for migration, in part or fully, via network sunsets to enhance telecom operators’ 4G and 5G connectivity. Legacy infrastructures have become largely outdated and replacing them promises benefits such as reliable availability, empowered security, reduced interference, diminished latency, and increased speed.
Hence, the push to sunset these older networks is being encouraged by national governments, with many countries mandating the shutdown of legacy networks between 2025 and 2030.
Currently, the global trend leans toward sunsetting 3G technology while maintaining a so-called thin-layer 2G. For the MEA region, Zoran Lazarevic, CTO of Ericsson MEA advises CSPs to analyze the number of active 2G/3G devices and carefully evaluate the business models tied to these devices.
This analysis will help determine the optimal technology to retire. It’s essential to approach the process methodically, with a well-structured, phased plan.
Renewals should happen on a technology-neutral and affordable basis, considering new methodologies to incentivise investments and allow for migrating these spectrum resources for future connectivity requirements.
Innovative Licensing Frameworks
With spectrum licences approaching expiry in more than 30 countries in 2025, more nations are expected to adopt innovative licensing frameworks to advance connectivity and reduce the financial burden on operators. Operators will need to proactively and transparently articulate their requirements with regulators, backed by clear use cases.
Depending on the approach to licence renewals, this may lead to uncertainty for operators and customers, harming investment, innovation, competition, and efficiency.
Governments are adopting innovative licensing models to ease financial strain on operators and boost connectivity investments. Germany and Spain, for example, extended spectrum licenses by five and ten years, at no extra cost.
Policy Considerations
The GSMA emphasizes that reforming spectrum licensing frameworks is key to fostering a productive and innovative communications sector. The three main approaches to license renewal are presumption of renewal, auctioning, and administrative re-assignment.
Regulators have taken several approaches to renewing spectrum licenses already held by operators. Uncertainty around future spectrum rights can discourage operators from investing in networks or competing effectively. To mitigate this, regulators should finalize renewal decisions at least five years before expiration. A presumption of renewal can further reduce uncertainty, except in cases of license breaches, spectrum reallocation for new services, or overriding policy needs.
Reforming spectrum licensing frameworks is key to fostering a productive and innovative communications sector.
The GSMA has outlined best practices for license renewal. These include:
- Setting a minimum 20-year term for licenses to encourage substantial network investments.
- Exploring alternatives such as releasing additional spectrum or lowering taxes to help operators offer more affordable services.
- Allowing voluntary spectrum trading to ensure efficient use, supported by stable, predictable regulations and transparent processes.
- Releasing all available spectrum to reduce costs, support competition, and minimize disruption to existing operators. By 2030, 2 GHz of mid-band spectrumwill be needed per country for respective city-wide 5G applications.
In the UAE, the TDRA has implemented comprehensive policies to maximize the best spectrum utilization. “These efforts have enabled the UAE to use nearly all IMT bands effectively, thanks to early planning and strict operator and stakeholder compliance. This proactive approach has positioned the UAE as a global leader in mobile broadband penetration, with 5G coverage reaching an impressive 98.5% of populated areas,” explained Eng. Tariq Al Awadhi, Executive Director, Spectrum Affairs, TDRA.
In Saudi Arabia, CST’s recent auction allocated low-band frequencies (600 MHz, 700 MHz, and 3800 MHz) to stc Group, Mobily, and Zain KSA. This increased the total licensed spectrum for mobile networks from 1110 MHz to 1400 MHz, making Saudi Arabia the G20 leader in licensed spectrum for mobile networks below 6 GHz.
More Insights on Spectrum:
6 GHz Spectrum to Transform Regions in 2025
The Year of Spectrum in the Kingdom of Saudi Arabia
