Day: February 22, 2019
AT&T to shut down 3G network in 2022; Verizon at end of 2019
AT&T will shut down its 3G network in early 2022 as the company shifts its focus to 5G implementation (?) and compatible 4G LTE networks. Research firm Ovum estimates that the number of devices using 3G exceeds 85 million, while AT&T reports that 3G was still the choice for 11% of the company’s postpaid users last year.
AT&T’s decision to shutter 3G, disclosed in a Wednesday regulatory filing, follows rival Verizon Communications’s warning that it will disconnect 3G cellphones at the end of this year. Verizon said in a recent filing it is “aggressively refarming 3G bands” for 4G but still needs more spectrum to keep up with its users’ demands. Verizon executive Ronan Dunne told investors at a Thursday meeting that its 5G service will reach 30 cities this year. AT&T’s 5G service touched parts of 12 cities at the end of 2018, with nationwide service expected in 2020.
The demise of 3G in the U.S. has been all but certain after cellphone carriers spent billions of dollars over the past decade to blanket the country with 4G service. That standard, also known as long-term evolution, or LTE, allows users to download data 10 times as fast as its predecessor and has paved the way for many smartphone apps that require ample mobile bandwidth.
Winding down obsolete versions is a habit for telecom companies. In the 1990s they pushed analog cellphone users to the first digital standards, and later persuaded 2G users to upgrade to one of several wireless technologies with the 3G label.
The companies are driven by necessity. Cellphone users with unlimited data plans stream more video on the go, testing the limits of what service providers can handle. Getting customers off 3G allows carriers to free up wireless frequencies for 4G signals over broader swaths of the radio spectrum.
Early 3G phones kicked off the smartphone era by giving customers a reason to use their devices for more than just talking and texting. Apple Inc.’s cellphone sales took off after it launched the iPhone 3G.
AT&T said 11% of its postpaid customers were using 3G service at the end of 2018. More than 85 million devices use 3G, according to research firm Ovum. They include smartphones, tablets and devices like vehicle-location trackers. The coming changes could also affect users of prepaid cellphone brands like TracFone that use other companies’ networks.
Telecom executives are already shifting their attention to the latest group of engineering standards known as 5G, which are expected to make video streaming and downloads even quicker. The specifications also support many more connections at once, allowing carriers to go after more types of gadgets.
The end of 4G LTE service, if it comes, is years away. ITU-R [1] and ITU-T haven’t finished writing 5G standards, and telecom companies say it will take years to make 5G commonplace. Companies are less motivated to kill 4G service because it can work in tandem with 5G, unlike previous generations that forced carriers to devote a band of wireless spectrum to one technology.
Note 1. An AT&T representative chairs ITU-R WP 5D which is responsible for the IMT 2020 (official 5G) standard. Another AT&T rep chairs the WP 5D SWG on Radio Aspects within the Technology WG. Hence, AT&T has tremendous influence and impact on IMT 2020 yet it’s marketing communications department falsely claims the company has deployed “standards based” mobile 5G.
https://www.wsj.com/articles/at-t-gives-3g-service-three-years-to-live-11550765221
Have a 3G phone? Here’s why it’s time to start thinking about upgrading
AT&T to shut down 3G network in 2022; Verizon at end of 2019
AT&T will shut down its 3G network in early 2022 as the company shifts its focus to 5G implementation (?) and compatible 4G LTE networks. Research firm Ovum estimates that the number of devices using 3G exceeds 85 million, while AT&T reports that 3G was still the choice for 11% of the company’s postpaid users last year.
AT&T’s decision to shutter 3G, disclosed in a Wednesday regulatory filing, follows rival Verizon Communications’s warning that it will disconnect 3G cellphones at the end of this year. Verizon said in a recent filing it is “aggressively refarming 3G bands” for 4G but still needs more spectrum to keep up with its users’ demands. Verizon executive Ronan Dunne told investors at a Thursday meeting that its 5G service will reach 30 cities this year. AT&T’s 5G service touched parts of 12 cities at the end of 2018, with nationwide service expected in 2020.
The demise of 3G in the U.S. has been all but certain after cellphone carriers spent billions of dollars over the past decade to blanket the country with 4G service. That standard, also known as long-term evolution, or LTE, allows users to download data 10 times as fast as its predecessor and has paved the way for many smartphone apps that require ample mobile bandwidth.
Winding down obsolete versions is a habit for telecom companies. In the 1990s they pushed analog cellphone users to the first digital standards, and later persuaded 2G users to upgrade to one of several wireless technologies with the 3G label.
The companies are driven by necessity. Cellphone users with unlimited data plans stream more video on the go, testing the limits of what service providers can handle. Getting customers off 3G allows carriers to free up wireless frequencies for 4G signals over broader swaths of the radio spectrum.
Early 3G phones kicked off the smartphone era by giving customers a reason to use their devices for more than just talking and texting. Apple Inc.’s cellphone sales took off after it launched the iPhone 3G.
AT&T said 11% of its postpaid customers were using 3G service at the end of 2018. More than 85 million devices use 3G, according to research firm Ovum. They include smartphones, tablets and devices like vehicle-location trackers. The coming changes could also affect users of prepaid cellphone brands like TracFone that use other companies’ networks.
Telecom executives are already shifting their attention to the latest group of engineering standards known as 5G, which are expected to make video streaming and downloads even quicker. The specifications also support many more connections at once, allowing carriers to go after more types of gadgets.
The end of 4G LTE service, if it comes, is years away. ITU-R [1] and ITU-T haven’t finished writing 5G standards, and telecom companies say it will take years to make 5G commonplace. Companies are less motivated to kill 4G service because it can work in tandem with 5G, unlike previous generations that forced carriers to devote a band of wireless spectrum to one technology.
Note 1. An AT&T representative chairs ITU-R WP 5D which is responsible for the IMT 2020 (official 5G) standard. Another AT&T rep chairs the WP 5D SWG on Radio Aspects within the Technology WG. Hence, AT&T has tremendous influence and impact on IMT 2020 yet it’s marketing communications department falsely claims the company has deployed “standards based” mobile 5G.
https://www.wsj.com/articles/at-t-gives-3g-service-three-years-to-live-11550765221
Have a 3G phone? Here’s why it’s time to start thinking about upgrading
Gartner: Enterprise Network Service Prices Continue to Decline
Prices for enterprise fixed and mobile network services around the globe have declined from 2017 through 2018 by up to 20%, with further declines expected through 2019. Highlights:
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Since 2012, overall network service prices in the developed world have declined by 5% to 20% annually, depending on the specific service and geography, but enterprises often fail to achieve the full potential savings.
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Prices for nonstandard or legacy network services see little decrease or even increases.
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Although network technology improvements can reduce an operator’s cost of delivering service, network service providers (NSPs) will only pass on savings to customers when they’re pressured to do so.
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By 2020, 10 Mbps Ethernet access to Multiprotocol Label Switching (MPLS) or internet services will be priced lower than T1 or E1 access to the same services, from a premium of up to 1.5 times today’s T1/E1 price.
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By 2020, MPLS pricing in mature markets will equalize with business-grade internet services, down from the 10% to 20% premium in 2018.
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By 2020, the cost of 5G enterprise cellular services will be priced at a premium of 10% or less above 4G cellular services.
There is considerable country-to-country variation within regions. The countries with a greater degree of competition (three or more viable choices for a service) have seen larger price decreases than countries that have little or no competition. We have noted with an asterisk (*) the regions in which there is either too little data or where large variations in pricing exist, negating any meaningful “average” price trend.
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The North American telecommunications market is very mature, with highly competitive conditions. Within all five service group categories, there are more than three providers. Since the competitive landscape has seen some consolidation, the only truly viable way for Gartner clients to take advantage of these conditions is to create a competitive RFP.
- T1 or any other TDM-based access to any network services should be treated as legacy and only used when no other access services are available. These prices are not changing, and Gartner predicts they could possibly increase in the near future as providers are eager to shed those amortized assets.
- The pricing of MPLS and direct internet access, over optical Ethernet access, continues to converge with internet access typically not more than 10% to 15% cheaper than MPLS, while Ethernet services remain significantly cheaper. Broadband internet access pricing is not decreasing significantly, although average speeds are continuing to increase, as are the number of providers in the market.
- SIP trunking is fully mature, and existing ISDN lines should be replaced with SIP as soon as the contractual opportunity arises.
- Cellular is a mature service, with 4G LTE the default network technology for most voice, messaging and data plans. While 3G network fallback still is available for areas of weak 4G coverage, providers do not differentiate service plans or prices for the two technologies. Data plan cost reductions primarily have occurred due to more competitive negotiated discounts from standard or rate card prices. Standards-based 5G technology providing higher data speeds, lower latency and the ability to support significantly higher cellular endpoint density than 4G LTE will begin commercial availability in 2020 and later.
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Avoid sourcing services that are not part of provider’s standard portfolio, even if this means accelerating the depreciation of nonstandard devices or losing some functionality of nonstandard configurations.
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Migrate away from legacy network services, even if it means replacing edge devices, while seeking improved pricing from the provider in return for adopting the current offerings.
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Ensure you are fully aware of any end-of-life announcements for network services you are using and aim to migrate away from such services.
