Estonia’s 2G shutdown could force costly equipment upgrades

Estonia’s major telecom operators plan to shut down their 2G networks within the next few years, potentially forcing businesses to replace thousands of devices at significant cost, ERR reports.

Viru Elektrivõrgud, an electricity network and sales service provider, has asked the Ministry of Justice and Digital Affairs to assess how a 2G shutdown could affect critical infrastructure and the continuity of essential services. The company says the network should remain in operation until reliance on it has been eliminated.

About 22,000 electricity meters and data concentrators on Viru Elektrivõrgud’s network use 2G technology, the company’s board member Annika Haaviste wrote to the ministry. Replacing them ahead of schedule would require investments worth several million euros and extensive installation work, she said.

Haaviste said irreversible decisions on shutting down 2G should be avoided until an impact assessment has been carried out. She also called for a shared position among the state, mobile operators and critical infrastructure companies.

The Consumer Protection and Technical Regulatory Authority (TTJA) told ERR that Viru Elektrivõrgud is the only company to have raised the issue with it. Operators decide independently whether to close their networks, said Grete Leesmann, head of the TTJA’s communications market bureau.

“The decision to shut down a 2G network is made by the communications operator. Estonia has not imposed a general requirement for operators to keep 2G technology in use until a set deadline, and closing the network does not require TTJA approval,” Leesmann said. She added that frequency licences are technology-neutral: the state grants the right to use radio frequencies, while operators choose which technology to provide.

Elisa has said it will close its 2G network in 2028. Telia says it will not shut down its network before 2029.

Leesmann said the phase-out of 2G is part of global technological development. The networks have already been shut down in Australia, Japan, Iceland and the United States, while Sweden and Norway plan to do so by 2027.

Keeping limited frequency resources tied to older technology is generally not efficient, Leesmann said, adding that 4G and 5G can provide more modern and secure communications services and use frequencies more efficiently.

Although few phones now rely exclusively on 2G, many other devices still use the network. These include remotely read electricity, water and gas meters; security and alarm systems; industrial and building automation equipment, such as gate systems; older payment terminals; vehicle tracking devices; and emergency call systems in cars. Older machine-to-machine equipment could also be affected.

The state cannot decide whether operators close their networks, but it is monitoring the situation. After Elisa announced its plan, the TTJA asked the company for more information on the timetable, possible impacts and measures to reduce risks. Leesmann said the network could not be shut down without taking potential effects into account.