AT&T has announced that the company will shut down its second-generation 2G wireless networks in 5 years. According to the SEC filing, the telecommunications giant has confirmed that the company is not interested to continue old 2G network after 2017. Along with this statement, AT&T has also confirmed that the company is upgrading its systems to faster technology for better use its limited airwaves.
AT&T has said that only 12% of contract customers, roughly 8.4 million people, are still using 2G handsets. AT&T has decided that it will not sell 2G handsets to its contract or prepaid customers anymore.
The telecom service provider said, “We expect to fully discontinue service on our 2G networks by approximately January 1, 2017. Throughout this multi-year upgrade process, we will work proactively with our customers to manage the process of moving to 3G and 4G devices, which will help minimize customer churn. As of June 30, 2012, approximately 12 percent of our postpaid customers were using 2G handsets. We do not expect this transition to have a material impact on our operating results, but will continue to evaluate the financial impact of transitioning customers from 2G devices to 3G or 4G devices.”
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