DoT will not intervene in 2G network shutdown; parks decision with telcos

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The Department of Telecommunications (DoT) has opted not to interfere in the decision regarding the closure of 2G networks, dismissing a plea made by Reliance Jio, asserting that it falls within the purview of telecom operators' commercial discretion, according to a report by the Economic Times. It's estimated that there are approximately 250-300 million 2G subscribers in India.

Despite 5G technology being rapidly adopted by users, 2G technology is expected to persist as the primary mode of communication in India for the next two to three years, given the significant number of users, especially among those unable to afford smartphones. Industry data indicates that around 50 million 2G handsets are sold annually, with over 500,000 2G base tower stations deployed throughout the country, primarily owned by Bharti Airtel, followed by Vodafone Idea, and state-run BSNL/MTNL. Although incumbent telcos have opted to discontinue 3G networks, no definitive action has been taken concerning 2G networks.

Therefore, the argument here is that the decommissioning of 2G networks should be driven by commercial factors rather than government or regulatory intervention.

Reliance Jio has been advocating for governmental assistance in phasing out 2G networks in India and transitioning all subscribers to 4G/5G services. However, industry experts argue that Jio's position is unique as it has solely operated on 4G/5G technology from its inception, unlike other telcos that previously offered 2G services.

Reliance Jio has been engaged in discussions with incumbent telcos regarding the closure of 2G/3G networks. Established in September 2016, Jio operates exclusively as a 4G and 5G provider, whereas older operators offer services across various technologies.

As of December 2023, the telecom subscriber base in the country stood at 1.19 billion, according to a report by the Telecom Regulatory Authority of India (Trai).

The top-five service providers accounted for 98.35 per cent of the total broadband subscribers by the end of December, with Reliance Jio Infocomm Ltd leading at 470.19 million, followed by Bharti Airtel at 264.76 million, Vodafone Idea at 127.29 million, BSNL at 25.12 million, and Atria Convergence at 2.23 million.