Should operators switch-off their legacy infrastructure or re-purpose it for M2M?

With the recent advances in cellular communications and new systems being deployed alongside existing ones, one wonders whether there still is a need for the legacy infrastructure, in particular the widely deployed 2G systems. Given the significant improvements in efficiency evident in the technology embodied in the 3G, 4G and beyond technologies, is the economics underlying the operation of the 2G infrastructure still viable? Would the operators be better off phasing out these legacy systems or could these continue to be the cash cows they have been all along these years, especially amidst the emerging breed of applications - the Machine to Machine (M2M) paradigm? This article examines the above issue quantitatively from an economic standpoint considering the UK market as an example and relies on data gathered by Office of Communications (OFCOM), the regulator in the UK. Findings from this study strongly suggest that re-purposing the legacy infrastructure for M2M services could pave the way to creating promising revenue streams for the operators.