Hanging onto the fading signal — the challenges of sunsetting 3G networks in New Zealand

The planned 3G sunset in New Zealand marks the symbolic farewell to the once much relied upon network generation. While the move frees up valuable spectrum for newer technologies, it risks cutting off some 3G–dependent rural users and legacy devices. And while this reliance has been gradually decreasing in New Zealand, the momentum of phasing out 3G has slowed compared to our previous analysis published.

Opensignal has analyzed the scale of how widely 3G services are still used in New Zealand several months before the planned switch-offs — and what the implications of 3G sunsets could be.

Key findings:

• 3G still matters in rural New Zealand: Some rural regions demonstrate a higher time on 3G but low time with no signal. This reflects a still strong role 3G services play in delivering connectivity to rural areas
• Nationally, 3G relevance is declining in New Zealand: our users in New Zealand are spending less time on 3G — dropping from 14% at the beginning of 2022 to nearly 5% in Q1 2025.
• Most 3G connectivity happens on sub-1GHz bands: the bulk of 3G readings in New Zealand is on the 850MHz and 900MHz bands, which could be re-farmed to provide 4G and 5G services.
• New Zealand is in the middle of the APAC pack for 3G: some markets in Oceania and Southeast Asia still rely heavily on 3G, while more economically developed markets in the region have already switched 3G networks off. New Zealand could learn from Australia’s experience, where 3G sunsetting has recently completed.

3G is still present in New Zealand, but slowly losing relevance

The use of legacy networks (2G and 3G) continues to vary worldwide. Opensignal has previously explored this in  European and the Asia Pacific (APAC) region, highlighting how reliance on older technologies differs by markets. 

In APAC, some markets have already completed their 3G switch-offs, eliminating Time on 3G altogether. These include highly developed nations like Australia, Singapore, or Taiwan — but also emerging markets like Malaysia or Indonesia, which have prioritized more efficient 4G and 5G deployments to boost their national connectivity. Malaysia phased out 3G in 2022, while Australia, Singapore and Taiwan all completed their sunsets in 2024. In other markets, there are partial 3G shutdowns happening — CMHK plans to turn off its 3G network in June 2025 — if it holds to this, it will become the first operator in Hong Kong to do so. In Japan, the remaining operator with 3G services — NTT Docomo — will keep them available until March 2026. As for 2G — some developed markets still keep this technology as a cost-effective solution for IoT connectivity.

However, several APAC markets remain heavily dependent on 3G — mainly in the Oceania area like French Polynesia, Papua New Guinea, Fiji, or New Caledonia. In Southeast Asia, a few countries still observe a substantial reliance on 3G networks, but also a noticeable presence of 2G connectivity, like Laos, Cambodia, or Vietnam. Some markets in the region are likely to retain their 3G networks for the next few years — for example, Vietnam plans to switch off 3G in 2028, to ensure time for 4G roll-outs and device upgrades. Meanwhile, some countries have not made any announcements about potentially discontinuing their 3G services just yet.

Our data shows that over the period of three years — between Q1 2022 and Q1 2025 — the proportion of time our users spent on 3G has decreased by two-thirds from 14% to 4.7%. While the decline continues, its pace seems to have slowed down since we published previous analysis on 3G use in New Zealand — and there’s still nearly 5% of average 3G use among our users, months before the scheduled shutdowns.

Meanwhile, the time spent on 4G and 5G networks has seen a corresponding rise. 4G usage increased from 84% to nearly 89%, and 5G usage, which was virtually non-existent, has now reached 5.5%. Substantial investments by New Zealand's operators — 2degrees, Spark and One NZ — have driven this increase, as they expand their 4G and 5G coverage, supported by spectrum acquisitions and infrastructure upgrades.

All three operators have also established the Rural Connectivity Group, to partner with the National Infrastructure Funding and Financing (NIFF) and deliver the Rural Mobile Programme. Its scope focuses on improving the availability of mobile services on state highways and at key tourist destinations, along with bringing 4G mobile and wireless broadband coverage to rural parts of New Zealand. The national MNOs share radio access network (RAN) equipment and one set of antennas on each cell built under this programme.

To a lesser degree, the natural device replacement cycle also introduces newer 4G- and 5G-capable phones to the market. This means that the proportion of users whose older devices are prevented from accessing the latest mobile technologies is dropping over time. Although our previous analysis demonstrated that the percentage of users on 3G-only smartphones was relatively small in New Zealand, this is still a valid group of consumers that would lose access to mobile services, should 3G shutdowns happen overnight.

This highlights the need for a carefully managed transition away from 3G, ensuring that no users are left behind. At the same time, switching 3G off allows operators to reallocate valuable low-band frequencies to support more efficient and higher-capacity 4G and 5G networks. Critical spectrum bands such as 850MHz, 900MHz and 2100MHz, traditionally used for 2G or 3G, are now being repurposed for 4G or 5G in several Asian Pacific markets.

3G services use mainly sub-1GHz coverage bands in New Zealand

Currently, mobile operators in New Zealand use mainly two sub-1GHz bands for the majority of 3G connections: 850MHz (3GPP 5), licensed to Spark, and 900MHz (3GPP 8) used by 2degrees and One NZ. 

While One NZ uses the 900MHz mainly for 3G services at the moment, it has also dedicated this band for some residual 2G networks. The operator intends to switch off 2G by the end of the year, along with 3G. Both One NZ and Spark use only their sub-1GHz assets for 3G connectivity, as they have fully refarmed the 2100MHz band (3GPP 1) to 4G services. However, 2degrees still has this band assigned for 3G connectivity, on top of the 900MHz band.

Once MNOs shut down 3G networks, almost all of the low-band spectrum (sub 1GHz) will be available to repurpose for 4G or 5G services. Low-band spectrum provides better coverage and is critical for delivering widespread 4G/5G connectivity. However, if local sites in rural areas are 3G-only and don’t get upgraded to 4G services, there’s a potential risk of local communities losing their mobile signal altogether. The operators will need a carefully designed refarming plan to ensure no rural community is left behind.

Some areas of New Zealand still highly depend on 3G networks

This risk of network disruptions due to 3G shutdown becomes even more pronounced when looking at regional differences within New Zealand. While the national average for Time on 3G is below 5%, certain areas, especially in the central part of the North Island, still show a higher reliance on 3G services, with some regions exceeding 10% of Time on 3G.

When we factor in Time with no signal, the situation becomes more nuanced. Urban areas like Auckland, Christchurch or Wellington see less time on 3G, due to the stronger presence of 4G and 5G networks — while also observing minimal time with no signal. However, some rural regions, mainly in the mountainous parts of the South Island, demonstrate both higher time on 3G and higher time with no signal. This reflects the overall poorer network infrastructure and coverage in these areas, likely due to the lack of investment in the areas where network deployments are costly. 

Satellite technology could play a crucial role to provide connectivity in these scarcely populated remote areas in the future. New Zealand’s operators have entered partnerships with satellite companies to expand their coverage in rural areas — 2degrees with AST SpaceMobile, One NZ with Starlink, and Spark with Lynk.

Some territorial authorities in the North Island show more time on 3G but not necessarily high time with no signal. This means that 3G legacy infrastructure still plays a major role in delivering a mobile signal to these areas — either as a fallback or as the only technology available when the 4G/5G footprint is lacking. However, if 3G gets switched off without the proper infrastructural upgrade of local cells, this could result in an increased lack of signal for local communities. 

Peeking over the pond: Australia’s experience with 3G sunsets

There are a lot of lessons that New Zealand can learn from its overseas neighbour Australia’s recent 3G shutdowns. Despite broad preparations for the final switch-offs which required some delays on the way, a lot of Australian customers complained about losing access to mobile services. Elderly and rural residents especially struggled after 3G shutdowns in this market due to reliance on older 3G-only devices, while others expressed their frustrations about having to spend money to upgrade to newer devices. 

A recent roundtable between the Australian government and national operators stressed the importance of a close collaboration between all parties to ensure access to emergency services (Triple Zero in Australia). Another point flagged the importance of technical standards and regulatory frameworks that would ensure devices sold in Australia are compatible with Australian networks — both mobile phones but also smart devices like personal medical alarms, smart watches and security systems. The Parliament of Australia released a post-shutdown report, which recommends: 

• launching support programs for customers who lost coverage after the 3G switch-offs,
• fast-tracking mobile service rollout via the Starlink network,
• expanding the National Mobile Coverage Audit to include off-road areas.

3G sunsets: a thorny path towards the bright future

3G shutdowns in New Zealand enable national operators to repurpose sub-1GHz spectrum for faster and more efficient 4G and 5G services. They also reduce network complexity and maintenance costs. However, the risk of leaving rural users with limited connectivity lingers, especially in areas with sparse 4G or 5G — and New Zealand’s 4G/5G signal availability is lower compared to many other markets worldwide, according to the Opensignal Global Network Excellence Index. 

Australia’s experience proves that 3G shutdowns could lead to customers complaining about a lack of signal in rural areas. These concerns, along with the desire to accommodate subscribers with older devices, were some of the reasons why One NZ has postponed its 3G switch-off, first to March 2025 and then to December 2025. Opensignal will monitor closely the transition from 3G networks in New Zealand and how it will improve or affect our users mobile network experience.

If you are interested in more analysis of New Zealand’s mobile or fixed broadband landscape — check out our previous reports on this market. Please contact us if you are looking for a more custom approach. Subscribe to our newsletter to stay up to date!