Phone users rush to upgrade as outgoing calls blocked on 2G devices

Earlier this month Phuong Thao's son started going back to school after the summer holidays but could not call his mother after school.

His attempts to call her merely elicited an automated announcement saying: "Please upgrade to a 4G or 5G phone to avoid service interruptions."

Thao, who lives in Hanoi’s Cau Giay District, explains her two children’s cheap 2G phones were never used during the holidays.

"So it was not until outgoing calls were cut off that I found out about the 2G network shutdown."

According to mobile services provider Vinaphone, telecom companies have been sending text messages to 2G phone users since the beginning of the year to inform them that the networks would be completely shut down by September 16.

But many people, especially children, ignored them and so they have blocked outgoing calls for 2G devices to encourage users to quickly switch to new devices that support 4G and other newer technologies, it added.

Thao had to buy her kids 4G-compatible phones. An employee at the store told her they have been selling over 10 new phones daily to customers looking to upgrade from their 2G devices.

A 2G phone displaying a text message announcing the 2G network shutdown in September 2024. Photo by VnExpress/Tuan Hung

Large electronics retailers like Hoang Ha Mobile, CellphoneS and ClickBuy have all reported a 20-30% increase in sales, with FPT Shop recording a 50% surge.

The low-priced segment has seen the biggest jump in sales as people buy new phones out of necessity.

Nguyen Lac Huy of CellPhoneS says: "As soon as the old [2G] technology shutdown deadline was announced, we started implementing promotions targeting those shifting away from 2G phones, mainly seniors and students."

Nguyen The Kha, CCO of FPT Shop, says: "In the low-price segment, brand is still a priority but not as much as in more expensive segments. Any brand can be sold easily if a phone has good specifications and affordable prices."

Budget phone producers are also capitalizing on this opportunity.

Dang Tran Nho Linh, director of the Vietnamese market for global affordable smartphone brand INOI, says the company, having anticipated the higher demand resulting from the 2G shutdown, has been preparing to launch several budget models like the A34 and A54 in Vietnam this month.

He says manufacturers are attracting customers by providing all basic functions like 4G compatibility and NFC for banking apps’ biometric authentication.

Cheap 4G phones are set to benefit from the 2G network shutdown. Photo by VnExpress/Tuan Hung

Feature phones that support 4G are also flying off the shelves thanks to their compact size and ease of use for older people and because many parents do not want to give their young children smartphones.

Major service providers like Vinaphone, Viettel and Mobifone have promotions that offer free 4G phones for subscriptions to certain packages.

Statistics from the Vietnam Telecommunications Authority show that as of June there had been nearly a million mobile service subscribers using 2G-only devices.

According to the government road map, even after 2G services are shut down on September 16, the network will be retained until 2026 mainly to support 4G devices if necessary.