Compiled / Zhang Gull
Edited / Tu Yanping
Design / Zhao Haoran
Source / CNBC, by Michael Wayland
On February 22, local time, AT&T, the largest telecommunications operator in the United States, officially shut down its 3G network service, and other major operators such as T-Mobile and Verizon will also end this network service in 2022. It has been exactly 20 years since 3G technology was first brought to the United States in 2002, and this technological farewell of the times has also been called "3G sunset" by the telecommunications industry.
The end of 3G will affect not only old-fashioned phones, but also other products in people's daily lives. Such as tablets, smart watches, medical devices, vehicle SOS services, home security systems and vehicles that use 3G networks for updates and remote communication.
This is probably the most overlooked topic in the automotive industry today, but its potential implications are wide-ranging. There are many vehicles with 3G embedded telematics control units, modems, and antennas that can only work on 3G networks. This involves millions of cars from almost all major automakers, including brands such as Tesla, Audi and Nissan.
In addition, not only old cars, but also some new cars, trucks and SUVs in 2021 will also be affected. The resale value of all vehicles will also be squeezed as a result.
A slow-motion disaster movie
Over the years, cellular communication technology has evolved, with faster data transmission, greater capacity, and more reliability. As 5G technology is becoming the standard and 3G services have to cede infrastructure and funding, keeping old networks fully up and running will mean newer, more advanced networks and devices will be unnecessarily limited by a lack of available spectrum. When operators don't need to maintain legacy technology, they can use the previous 3G frequencies to expand the bandwidth of 5G.
Whenever a new generation of cellular technology emerges, carriers, in coordination with government agencies such as the Federal Communications Commission (FCC), begin to phase out the oldest networks, freeing up spectrum and network resources for the latest networks that can utilize that spectrum more efficiently. This is happening in every generational shift, and it will be the same in 5G.
The 4G/LTE networks that most people use today will still be around for years — because 5G is designed to support dynamic spectrum sharing (DSS) technology, with 4G and 5G devices sharing the same wave.
According to the U.S. Federal Communications Commission (FCC), the following are the off-line times for major 3G network operators:
- AT&T 3G: February 22, 2022
- T-Mobile (Sprint 3G TDMA): March 31, 2022
- T-Mobile (Sprint 4G LTE): June 30, 2022
- T-Mobile (3G UMTS): July 1, 2022
- Verizon 3G: December 31, 2022
AT&T was the first major vendor to shut down its 3G service, followed by T-Mobile and Verizon, which will retire later this year. Other smaller carriers that rely on these networks, such as Cricket, Boost, and Straight Talk, will also gradually shut down services.
"Since February 2019, we have been working with automakers to help them transition their connected cars to newer technologies before the end of 3G service on February 22." In an emailed statement on Monday, AT&T said, "As we work with our customers on this transition, customers have received and will continue to receive more communications, including direct mail, billing messages, emails, and text messages." ”
Although vendors have warned that their 3G networks will be permanently shut down for a while, many automakers will still install devices that partially use the old network until 2021.
Major features affected
The following are currently widespread vehicle telematics services that rely heavily on 3G connectivity (depending on the different functional configurations and update plans of major automakers):
- Concierge services, such as reservations or roadside assistance
- Connect navigation and traffic
- Collision reporting, localization and response (data and/or voice)
- Data from in-car Wi-Fi hotspots
- Smartphone app connection
- Service scheduling
- Software updates and alerts
- Real-time weather data
- Remote engine start-
- Remote lock/unlock
The consumer report (consumerreports.org), published by the American Consumer Alliance, publishes a large list of affected vehicles by car brand. Owners who have not yet received contact from the car manufacturer can also check the brand's website or consult the car dealer to see if their vehicle is affected.
Automakers' response
The shutdown of 3G services is up to the operator, not the automaker. As a result, manufacturers choose to respond in different ways. Either do nothing, or scramble to offer upgrade services, including paid subscriptions.
Some manufacturers offer software and hardware upgrades, while others have launched new services where car owners can pay a one-time fee or opt for a monthly/annual subscription.
"They're looking at how many people are really affected by the 3G shutdown and judging the rationality and necessity of developing an upgrade based on the response." Sam Abuelsamid, principal analyst at Guidehouse Insights, a market intelligence consulting firm, said.
For example, according to Tesla's website, the company charged owners of Model S cars that were manufactured before June 2015 for a $200 fee to upgrade their vehicles with modems. It also explains that without the upgrade, drivers will lose some remote features and certain infotainment features, including navigation, maps, and real-time traffic updates.
Dashboard of Tesla Model S cars / Image source: Getty Images ▼
Owners of some Honda cars can download the update software for free until Tuesday. After that, they will have to pay at least $900 for the hardware upgrade.
Volkswagen, Audi and Stallantis, which owns brands such as Jeep, Ram and Chrysler, are offering third-party alternatives to some services.
Audi and Volkswagen have joined forces with partner service provider Mojio to launch a plug-in device that can be connected to the vehicle's telematics (or OBD) port to maintain emergency services. Audi owners can enjoy the service for free for a certain period of time before switching to a paid subscription plan.
A GM spokesperson said they have been sending remote updates since October to keep the service running.
While some other automakers, such as Toyota, didn't respond, just indifferently watching the service expire.
"Although these circumstances are caused by factors beyond our control, we sincerely apologize for any inconvenience." This is a statement made by Toyota on its website. Automotive portal The Drive asked directly if Toyota plans to offer upgrades to consumers who own affected vehicles, whether for payment or otherwise, and their answer was simply "no."
Compared to these brands, Ford is less affected by the 3G shutdown. They will also no longer offer older versions of the app.
Alternative: Smartphone
Without notice from the automaker and with no avail, the car cannot be upgraded from 3G to 4G, and there is an alternative solution to replace some functions with a smartphone.
Services connected to specific vehicle functions, such as remote lock/unlock, remote engine start, and service tracking – are too difficult and are basically recommended to be abandoned; however, other features are very easy to replace. For example, Google's personal safety app, which provides car collision detection and emergency service notifications. It can be found on many Android smartphones. Apple is reportedly developing similar technology for iPhone and Apple Watch users.
The OnStar Guardian app offers mobile crash response and road assistance as part of a $15-month subscription fee that can be used by drivers of any vehicle, not just GM models.
Drivers who rely on Apple's CarPlay or Android Auto navigation will not be affected. Because these systems are connected to the user's mobile phone, the vast majority of mobile phones tend to use the operator's 4G, LTE or 5G network. As well as those old cars that run the navigation system through the SD card will not have any problems.
Owners can choose to replace your connected transportation and navigation services with aftermarket accessories that support Android Auto and Apple CarPlay by replacing the vehicle's infotainment system host. There are also many aftermarket options that support Amazon Alexa and its connectivity services.
The Wi-Fi hotspots in the car are easy to replace, open hotspots with smartphones, and even be able to run on faster 5G networks.
OnStar 4G LTE dashboard system on Chevrolet Impala / Image Source: Daniel Acker (Bloomberg) ▼
Sunset West Hills' service network is not new to the automotive industry, but the impact on consumers is becoming more and more extensive, as many automakers are taking the opportunity to expand their connected car fleets and services in order to generate greater revenue.
4G networks, which are now widely used by automakers in new cars, will also face such moments in the future. Car companies, telecom companies and regulators need to do more to prepare for this and ensure that such surprises do not happen again.