BOE Report

As 3G Networks Shut Down in Canada, Are Oil and Gas Producers Prepared?

Rogers has announced it will retire its 3G network on July 31, 2025, marking the start of Canada’s 3G phaseout. Other major carriers—Telus, Bell, and SaskTel—are expected to follow, though exact timelines remain unconfirmed. For Canada’s oil and gas producers, this raises an urgent question: Will critical field devices that rely on 3G networks lose service sooner rather than later—and how quickly can they be replaced.

3G Shutdown Updates at a Glance

  • Rogers: Plans to retire its 3G network on July 31, 2025.1
  • Telus: Has publicly warned it intends to wind down 3G services but has not announced a formal shutdown date. Telus introduced a 3G surcharge in the past year while emphasizing their goal is to migrate customers off older networks.2
  • Bell and SaskTel: Have not publicly communicated anything about their 3G shutdowns, which could mean a later end date or shorter notice.
  • Observed Service Issues: TOKU has been keeping close tabs on the impending 3G shutdown with its devices that continuously monitor signal strength. TOKU has observed weakening signal strength for some of its devices on the 3G network in western Canada—possibly an early indication of service reduction.3

For more details on each carrier’s 3G transition plans and observed service issues, visit the Canadian 3G Network Shutdown Update page that TOKU is updating regularly.

2025 vs 2026 Shutdown: Why Early Planning Is Critical

There is widespread speculation in the industry that remaining 3G networks may end by late 2025 or possibly continue until the end of 2026. Either scenario poses challenges:

  1. End of 2025
    1. A short runway—10 months’ notice, if announced soon
    2. A sudden surge in orders could lead to supply shortages, higher costs, and potential installation backlogs
  1. End of 2026
    1. Allows more time—potentially 22 months—to phase in new hardware
    2. However, if producers wait until the last moment (e.g. January 2026) to act, the compressed timeline would mirror the same problems as a 2025 shutdown.

Countless devices, integral to monitoring and controlling production sites, are currently equipped with 3G modems that will cease to function once 3G networks go dark. Even if carriers give ample notice, industry-wide adoption of new hardware could create a supply crunch. Given that Telus, Bell, and SaskTel have yet to finalize or announce dates, counting on extra time can be risky. Proactive companies that begin planning and taking action now stand the best chance of avoiding service gaps and costly scramble scenarios. To help illustrate the risks of producers delaying action, let’s consider a few ways this could play out for a widely-used gas flow measurement device. 

Potential Scale of the Challenge: An EFM Example

Roughly 15,000 Smart-Alek® EFM units were manufactured in the early 2000s—all with integrated 3G modems. To start, our scenarios will use a conservative estimate for the scope of replacement, assuming half of Smart-Aleks® remain operational and assuming producers decide half of operational units warrant upgrading. That would be about 3,500 devices in need of upgraded telecommunication technology.

Figure 1 highlights the potential stress on EFM supply chains with different shutdown dates (an uncontrollable factor for producers) and immediate or delayed action by producers (a controllable factor). Note that if the shutdown date is end of 2026 but producers take no action until January 2026, then a similar effort to a shutdown at the end of 2025 would be required. In both scenarios, EFM suppliers and installers would have to produce, deliver, and install hundreds of new EFM systems every month for 10 to 12 months to keep pace with demand—with possible peaks of around 600 units per month.

Figure 1. Projected monthly demand to replace 3,500 Smart-Aleks® with different shutdown dates and immediate or delayed action by producers

Now if the assumed scope of replacement for Smart-Aleks® turns out to be low and more than 3,500 units must be replaced, the strain on suppliers will skyrocket. The situation is further compounded by normal EFM deployments for new wells—expected to grow in tandem with Canada’s upcoming LNG export expansions. As demand for EFMs spikes, an already tight hardware supply could become tighter still.

Replacements that Ease the Industry Burden of Upgrading

With the Canadian oil and gas industry facing the impending 3G shutdown and potential supply chain challenges, replacements that are advanced—yet straightforward and cost-effective—will be welcome alternatives. One example of a supplier that makes upgrading simple is TOKU. Its QuickSense EFM is a plug-and-play replacement for legacy EFMs that rely on 3G modems. Designed for CID1 environments, the QuickSense EFM:

  • Lowers costs by ~20–30% compared to traditional SCADA EFM solutions—ideal for older wells with lower production rates;
  • Offers software flexibility through a secure API for a company’s preferred SCADA platform;
  • Reduces install time with a field-friendly design that requires fewer components and less setup;
  • Streamlines future upgrades by making telecom module swaps quick and straightforward—no full system overhaul needed; and
  • Is backed by proven expertise from an experienced team with a track record in EFM technology.

Preparing Your Company for the Canadian 3G Shutdown

Canadian producers are advised to start making plans now to upgrade systems that rely on 3G modems. By being proactive, producers can:

  • Secure their equipment supply now;
  • Ensure uninterrupted service;
  • Avoid a “stampede to convert”, including
    • last-minute cost spikes,
    • reduced options, and
    • installation quality concerns; and
  • Keep ahead of regulatory or operational deadlines.

A forward-looking approach is crucial given the uncertainty around 3G shutdown dates and looming industry-wide demand for upgrades. The alternative is waiting for notice from carriers about their shutdown date—which may not allow enough time for the production, delivery, and installation of replacement equipment.

References

  1. 3G Network retirement – Everything you need to know. https://www.rogers.com/support/mobility/3g-network-retirement-everything-you-need-to-know
  2. Explaining TELUS’ 3G usage price increase. https://www.telus.com/en/support/article/3g-usage-price-increase
  3. Update on Canadian 3G network shutdown. https://www.tokusystems.com/update-on-canadian-3g-network-shutdown/