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3G Shutdown Impacts New Zealand Businesses

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  Published in Science and Technology on Tuesday, February 10th 2026 at 19:57 GMT by The New Zealand Herald
      Locales:

Paraparaumu, New Zealand - February 11th, 2026 - The ongoing shutdown of the 3G network is continuing to impact small businesses across New Zealand, with many facing unexpected costs to upgrade essential systems. Shane Hodgens, owner of The Good Earth pub in Paraparaumu, is the latest to voice frustration, recently receiving a $500 bill to replace his security alarm system rendered obsolete by the network switch-off.

The 3G network, once ubiquitous, is being phased out by major telecommunications providers like Spark and Vodafone to make way for the faster and more efficient 5G technology. Spark began the process last year, with Vodafone following in January, citing the need to free up spectrum and improve overall network performance. While the technological advancements are widely accepted, the financial burden falling on small business owners is drawing criticism.

"The bill just came through, $500 to replace the alarm. That's a big hit when you're running a business," Hodgens explained to the Herald. "It feels like we're being penalized for something that isn't our fault. We didn't ask for the network to be shut down, and now we're stuck footing the bill for upgrades."

This sentiment is echoed by Shane Retira, National's digital economy spokesperson, who argues the government could have done more to mitigate the financial impact on businesses. "They're already facing inflation, interest rates, and energy prices, now they've got to find another $500, $1000, $2000 to upgrade their systems," Retira stated. "It's a cost they shouldn't have to bear, because this is a network being taken away." He suggests a more robust support package could have eased the transition.

While the government did announce a $10 million support package in 2021 aimed at assisting businesses with the 3G transition, it appears to have been insufficient and poorly timed. Hodgens, like many others, didn't qualify for the scheme, which closed in December 2022. This leaves business owners like him feeling abandoned and financially vulnerable. The eligibility criteria and reach of the original program are now under renewed scrutiny given the current widespread impact.

The issue highlights a larger challenge: the rapid pace of technological change and its effect on businesses operating on tight margins. Many small business owners are focused on day-to-day operations, simply trying to "keep their head above water," as Hodgens put it, and lack the resources or bandwidth to proactively plan for significant infrastructure changes. A $500 expense, while seemingly small in the grand scheme of things, can be a significant hardship for a pub or local store already grappling with numerous financial pressures.

The Telecommunications Commissioner Re:Confirm maintains that the 3G migration support package was available to eligible businesses, but acknowledges its time-limited nature. A spokesperson stated that Re:Confirm continues to collaborate with telecommunications providers to ensure a "smooth transition" for customers and businesses. However, critics argue that 'smooth' is far from the reality experienced by many.

Spark, for its part, claims to have been proactively contacting customers using 3G for several years, offering information and migration assistance. Emma Pearce, a Spark spokesperson, highlighted the resources available on their website to guide businesses through the transition. While such efforts are commendable, they haven't prevented the current wave of financial strain.

The situation raises questions about the responsibility of telecommunications companies and the government in managing the impact of network upgrades on small businesses. Some experts suggest a more phased approach to the 3G shutdown, coupled with more substantial financial assistance and extended support programs, could have minimized disruption. Others propose that telecommunication companies should bear a greater portion of the upgrade costs, considering they are the primary beneficiaries of the network modernization.

Looking forward, the incident serves as a warning for future technological transitions. As New Zealand continues to embrace new technologies, it's crucial to ensure that small businesses are not left behind, and that adequate support is in place to help them adapt to a rapidly changing landscape. The story of The Good Earth pub is likely just one of many, and a more proactive and inclusive approach to technological change is needed to protect the backbone of the New Zealand economy.