A guide for telematics providers on the 4G/5G transition
As 2G and 3G networks sunset globally, telematics service providers face a critical juncture: ensuring uninterrupted operations while transitioning fleets to 4G/5G. Here’s how Navixy helps you prepare.
Imagine this: you’re running a fleet in Barbados when you receive just two weeks' notice that your 3G network is about to shut down. Meanwhile, in Mexico, carriers can legally provide as little as 90 days' warning for an LTE migration. Over in Morocco, the government has banned 2G devices for state approvals altogether. As the phase-out of legacy networks accelerates worldwide, businesses are left racing to adapt.
Why are 2G and 3G networks shutting down?
Across the globe, the sun is setting on 2G and 3G networks. Mobile operators are reclaiming spectrum to power the future—4G and 5G networks. Older networks cannot meet the demand for speed, capacity, and reliability. Consider this:
- 2G supports up to 1,000 users per cell.
- 3G handles 3,000 users.
- 4G accommodates nearly 10,000.
- 5G can support hundreds of thousands ( depending on numerous factors.).
Operators can no longer justify maintaining aging infrastructure. With the explosion of IoT devices requiring seamless, real-time data transmission, 4G and 5G are the natural successors.
The decline in 2G and 3G infrastructure creates operational challenges. Some operators lease tower capacities, so their 2G networks may not provide. As a result, trackers will often be out of contact with the server. While trackers can store and transmit historical data once reconnected, real-time monitoring becomes impossible. This gap in live tracking poses serious risks, particularly for critical events like accidents or SOS signals.
Artem Permyakov, Navixy’s Solutions engineer
Global timeline: a patchwork of deadlines
The shift to 4G/5G is happening at different paces worldwide. Here’s an overview:
- United States: 3G was fully shut down in 2022; 2G will follow by 2024.
- Europe: 3G will be phased out by 2025, but 2G remains active for IoT and voice services.
- Australia, Canada, Japan: Full migration expected by 2025.
- South Africa: New deadline for both 2G and 3G—December 2027.
- India: 250-300 million users still rely on 2G, keeping it active.
- Latin America: Timelines vary, with countries like Argentina and Brazil focusing on phased rollouts.
In some regions, the notice period for shutdowns is shockingly short—90 days or less. Waiting until the last minute could leave businesses stranded.
"When it comes to notifying about the shutdown of older-generation networks, the common practice is a 90-day notice outlined in contracts. However, operators typically announce it publicly 9 to 12 months before the actual switch."
Vlad Tsveklinskiy, Vice president of Navixy
Despite the general trend toward transitioning to 4G networks, coverage in different countries depends on the specific operator. Below, you can see a map of mobile network availability in Mexico from two network operators.
4G network coverage varies significantly among mobile operators in Mexico. Source
Network of Telcel Mobile
Network of AT&T/Unefon
Why 2G outlasts 3G
Surprisingly, 2G often outlives 3G. Why? 2G remains essential for low-bandwidth IoT applications like GPS tracking and basic communication. In Europe, for example, Vodafone plans to retire 2G only in 2025—long after 3G is gone.
The need for proactive transition planning
For telematics service providers, the transition to 4G and 5G is more than a technical shift—it’s a matter of business continuity. Many clients, unaware of the looming shutdowns, are not prepared to upgrade their devices. These GPS trackers, installed years ago and quietly reliant on 2G or 3G networks, don’t offer a warning when the network disappears—they simply go offline. For businesses relying on real-time tracking, this can result in immediate disruptions, lost data, and operational breakdowns.
The hesitation to act is understandable. Unexpected investments are difficult to justify when current systems appear to be functioning, and there is little external pressure to upgrade. However, waiting for devices to fail will only amplify the problem. By then, the impact—on operations, customer trust, and business reputation—will already be significant.
| Real case Our partner in Barbados, a transportation management service provider, faced a sudden challenge when they received notification of an upcoming 3G network shutdown just two weeks before the scheduled date. Managing over 800 vehicles across multiple countries, they had little time to act. In a bold move, the client threatened legal action against the telecom operator, successfully negotiating a 3-month extension for the 3G shutdown. To meet the new deadline, the partner assembled a dedicated team of 5 installers to upgrade the entire fleet from 3G to 4G devices. However, the tight schedule forced them to absorb the costs of the retrofitting process themselves, amounting to an average of $75 per unit. |
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Investing in 3G technology today lacks economic viability. Organizations that adopt 3G devices now face an inevitable second upgrade within a few years, effectively doubling their expenditure. Delaying the upgrade of hardware infrastructure can lead to significant risks:
| For TSPs: | For their clients: |
|---|---|
| Potential price surges due to increased demand Extra costs for urgent device replacement service Limited equipment availability during peak transition periods Purchasing all devices from a single manufacturer can be challenging.A multibrand infrastructure may lead to difficulties during support and maintenance, as well as in training and user adaptation. | The waiting till the shutdown will cause the loss of connectivity with trackers. This leads to data loss and lack of control, disrupting logistics chains and making real-time route tracking impossible. Delivery delays, penalties for missed deadlines, and dissatisfied clients result in significant financial risks and reputational damage. Higher costs for a modernization due to higher equipment prices caused by increased demand. |
Strategic planning for a 4G/5G transition
For service providers, the path forward is clear: taking initiative now protects current operations and positions businesses to deliver stronger, more reliable services in the 4G/5G era. Therefore the transition to LTE needs to be treated as a long-term strategic decision:
- Build client awareness early. Proactive communication about the shutdown timelines and risks of inaction helps clients understand the urgency and importance of upgrading. Explain that waiting until the last call from a network operator or systems fail will only create chaos and damage their business.
- Position upgrades as value-driven improvements. Highlight how 4G and 5G networks provide faster, more reliable tracking, richer data insights, and better operational efficiency. Frame the investment as a future-proofing solution.
- Plan phased rollouts to minimize disruption. Upgrading every device simultaneously is impractical and risky. A phased approach, prioritizing high-value or critical assets first, helps spread costs and ensures operational continuity.
- Secure hardware and resources now. As demand for 4G-compatible devices grows, shortages and price surges are inevitable. Acting early ensures that providers have the equipment and installation capacity needed to stay ahead.
Recommendations for service providers from Navixy
Introducing action-plan to help you stay ahead, minimize disruptions, and smoothly upgrade to 4G and 5G, protecting your customer base and reputation during network shutdowns.
Good to note for seamless device replacement
- Purchase either the latest version of the same model or a similar model to the one already installed and replace the existing device with the new tracker. This way, the history will be preserved, along with all information such as sensors and other settings.
- Refine the device replacement process to ensure sensors aren't deleted when switching to another model, allowing settings retention.
| How to change device in Navixy Navixy makes upgrading your GPS tracker effortless. With our streamlined replacement process, it takes just three simple steps: Select the tracker you want to replace. Enter the details of the new device. Complete the replacement with a single click. All settings, configurations, and historical data from the original device will be preserved. Plus, the platform handles activation automatically, ensuring a smooth transition with zero disruptions to your operations. You can find clear and intuitive instructions by following the link. |
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Conclusion: don’t wait for the clock to run out
The 2G/3G shutdown is a wake-up call. Early action by telematic service providers can sidestep last-minute chaos, minimize upgrade costs, and unlock the full potential of 4G and 5G networks.
Navixy is here to help. From technical guidance to streamlined upgrades, we support you every step of the way. The time to future-proof your operations is now. For personalized guidance on upgrading tracking devices or creating a tailored migration strategy, reach out to our experts today.