Zeller comments on Australia's move to decommission 3G networks

Australia's 3G networks are set to be decommissioned next month, a move aimed at reallocating the bandwidth to more advanced 4G and 5G services.

While mobile phone users are unlikely to experience significant connectivity issues, the shutdown may pose substantial challenges for the retail and hospitality sectors, where many critical business devices, such as point-of-sale (POS) and electronic funds transfer (EFT) systems, are yet to be upgraded to support newer technologies.

Industry experts have raised concerns that disruptions caused by the '3G apocalypse' could lead to considerable customer frustration and potential financial losses. In an environment marked by inflation and increasing overhead costs, these disruptions could be particularly detrimental to business owners.

Retailers and hospitality providers heavily rely on POS and EFT systems to process transactions. These systems frequently use 3G networks to function, and a sudden loss of connectivity could result in significant downtime, delayed transactions, and a diminished customer experience. Experts advise businesses to update their technology to 4G or 5G-compatible devices to avoid these pitfalls.

Beyond hardware, businesses should also consider conducting staff training on new systems and establish contingency plans in case of unexpected technical issues. An effective strategy could include the temporary use of offline transaction methods during the transition period.

In sectors like hospitality, which is already struggling with the ramifications of the COVID-19 pandemic, any further operational disruptions could be severely damaging.

The Australian Communications and Media Authority has been working with telecommunications providers to ensure a smooth phase-out of 3G services. However, the responsibility largely falls on individual businesses to ensure their operations are not adversely affected by the upcoming changes.

Businesses are now being urged to act promptly to avoid the potentially adverse effects of the 3G shutdown.

"The upcoming 3G shutdown signals a perfect storm on the horizon for business owners already grappling with rising competition, declining profit margins and - according to Zeller’s latest data -  consumers spending less today than a year ago," Zeller's Director of Growth, Josh McNicol, told TechDay.

"The same data also found one in five Aussie businesses had considered closing their doors in the past year, so any significant disruption caused by connectivity issues could be fatal, given how many business critical devices - such as EFTPOS machines - rely on strong, reliable mobile coverage to accept payments."

McNicol stressed that taking the time to verify your business EFTPOS solutions are 4G-enabled, or ensuring you have back-up connectivity methods such as Wi-Fi or ethernet, "will ensure you avoid any interruptions in accepting payments".

"Additionally, having a reliable backup payment solution on-hand is  another way owners can prepare - for example using Zeller’s Tap to Pay App enables businesses to accept card and mobile wallet payments using their iPhone or Android smartphone, providing a reliable alternative to the traditional EFTPOS terminals," he said.

"While freeing up spectrum for the advanced services of 4G and 5G will benefit business owners in the long run, we heartily encourage them to be ready for the 3G shutdown next month."