The consequences should mainly affect tracker and payment machine companies. The estimate comes from a study carried out by Links Field, which is partnering with Lyra M2M to facilitate the transition.
The market is preparing for the switch-off of the 2G and 3G mobile networks, which has already been announced by Anatel and which, it seems, will take place gradually. The agency has also announced that, as of April 2025, new equipment using only these connectivity technologies will no longer be allowed for sale. On the other hand, the major operators have already started adapting their 2G and 3G antenna networks.
According to an unprecedented study on the subject prepared by Links Field, a virtual telecommunications operator (MVNO) focused on machine-to-machine (M2M) communication solutions, thousands of companies will have their operations affected over the next few years, since, of the 20 million tracking and payment devices on the market today, 12 million still use 2G and 3G connectivity. On the other hand, according to the Brazilian Internet Association (Abranet), many Brazilian municipalities still only have 2G or 3G mobile connectivity, such as 40 of the 62 municipalities in Amazonas.
Estimates of the impact of this switch-off on companies amount to around R$10 billion, which will have to be absorbed by entrepreneurs across the country, including many micro and small entrepreneurs. These costs relate to the purchase of 4G devices (with greater data transmission capacity and better energy efficiency) and the replacement services for obsolete equipment in use on the market.
To mitigate the effects of this technological transition, it is essential that professionals in the area seek quality information on the new options best suited to each service offered, as well as tools to facilitate the management of their line park, with precise identification of users, forms and details of use, activation and deactivation of lines, mapping of antenna locations and coverage by areas, technologies and operators, as well as volumes of data trafficked. This task is easily accomplished by the connectivity and SIM card fleet management platform created by Lyra M2M, a Lyra Group company dedicated to IoT and M2M devices and connectivity.
In this context of the switch-off, this platform, together with the information from the Links Field study (available free of charge at www.impactoeconomico2g3g.com.br), are very useful tools for companies that need to mitigate the costs and risks of transitioning their devices to 4G technology and its NB-IoT and CAT-M1 variants, as well as seeking out the benefits and new opportunities arising from the transition. The two companies are starting to work together to facilitate this transition.
For Paulo Nogueira, Commercial Director of the Lyra Group, “this kind of collaboration is a sign of the maturing of the market. It’s a necessary step for companies in the IoT sector to be able to rely on integrated, customized, highly efficient solutions, with a focus on quality and technological innovation.” The Founding Partner and Managing Director of Links Field Brazil, Thiago Rodrigues, adds: “the market has been looking for more information and clarity about the technologies that have such an impact on their business, and the focus of this partnership is to bring innovation and information to the M2M segment” and adds: “Lyra M2M’s expertise in connectivity management is aligned with our strategy of supporting customers in making decisions at this crucial time of technology transition”.