The ability to deliver on 5G experiences is a premium customers are willing to pony up for according to a new market report from the Ericsson ConsumerLab. The report, titled 5G Value: Turning Performance into Value, finds that 5G customers are willing to spend up to 11% extra on their phone plans if it means they get full 5G connectivity out of the deal.
While the report primarily focuses on the value better 5G networks holds for CSP providers, there is a distinct business case to be made for anyone dealing with cellular or Wi-Fi networks capable of supporting 5G download speeds.
In gathering the data for the report, Ericsson interviewed more than 37,000 consumers in 28 countries during May and June 2023. The research scope, Ericsson claims, is reflective of the opinions of about 1.5 billion consumers, including 650 million 5G users.
Findings from Ericsson’s 5G Market Report
Roughly one-in-five 5G smartphone users expressed a clear preference for differentiated quality of service connectivity, according Jasmeet Singh Sethi, Head of Ericsson ConsumerLab.
“Rather than settling for generic, best-effort 5G performance, these users are actively seeking elevated and consistent network performance, especially tailored for demanding applications and specific key locations,” Sethi clarifies.
The report also addresses the evolution of video because of 5G networks, with mediums such as 4K, 360-degree experiences, multi-view videos and augmented reality (AR) receiving a major uptick in consumption following an upgrade to 5G.
On average, 5G users report a 47 percent increase in time spent on enhanced video formats over the past two years. The number of daily augmented reality (AR) application users has doubled since the end of 2020.
The report also outlines several key areas where consumers expect strong 5G services. These locations include major travel hubs such as airports, however, entertainment venues receive a similar amount of scrutiny regarding the performance of the network.
Ericsson’s Chief Technology Officer (CTO), Erik Ekudden, states that the report also confirms the power of network Application Programming Interfaces (APIs) as a means of delivering differentiated experiences to 5G customers on the network.
Major 5G Trends Moving Forward
With these findings, the report outlines several major trends occurring within the 5G market:
- Satisfaction drivers are evolving beyond 5G coverage with upload speeds and video quality being the biggest priorities for users on a network.
- Emerging media formats such as 4K and augmented reality (AR) are driving a greater need/demand for 5G networks.
- 5G performance in specific locations is critical for customer satisfaction.
- 5G consumers will pay premiums for differentiated connectivity with twenty percent of smartphone users expecting differentiated 5G connectivity.
The full report is available for a deeper dive on Ericsson’s website.
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