One in Five 5G Users Willing to Pay More for Enhanced Service: Ericsson Research

Ericsson ConsumerLab study finds that a significant portion of 5G smartphone users are willing to pay extra for a superior 5G service experience. The study highlights that one in five 5G smartphone users is prepared to pay up to 11 percent more for differentiated 5G service offerings.

Highlights

  • One in five 5G smartphone users willing to pay up to 11 percent more for differentiated 5G service offerings.
  • 5G experiences at crucial locations, such as stadiums and airports, strongly influence consumer loyalty.
  • Consumer satisfaction factors shifting from geographical coverage to application-experience-based metrics.

Follow Us

One in Five 5G Users Willing to Pay More for Enhanced Service: Ericsson Research
According to new research from Ericsson ConsumerLab released on Tuesday, a significant portion of 5G smartphone users are willing to pay extra for a superior 5G service experience. The study, titled "5G Value: Turning Performance into Value," underscores the growing satisfaction levels among 5G consumers worldwide.

Also Read: Telefonica and Ericsson Collaborate to Advance Open Networks with Cloud RAN




Premium 5G Experience

The report highlights that one in five 5G smartphone users is prepared to pay up to 11 percent more for differentiated 5G service offerings. These users, often seeking enhanced quality of service tailored for demanding applications and specific locations, are driving demand for premium connectivity.

Loyalty and Location

In addition to the willingness to pay more for superior service, the research suggests that consumers' loyalty to their communications service providers (CSPs) is strongly influenced by their 5G experiences at crucial locations such as stadiums, entertainment arenas, and airports. Unsatisfactory 5G connectivity experiences in these areas can make customers up to three times more likely to consider switching CSPs.

Also Read: Ericsson Commits to Open RAN With Support for Open Fronthaul

Changing Satisfaction Factors

Furthermore, the study - which reflects the views of an estimated 1.5 billion consumers globally, including 650 million 5G customers - reveals a shifting landscape in consumer satisfaction factors, with a transition from primarily considering 5G geographical coverage to focusing on application-experience-based metrics. Ericsson's research revealed that elements such as video streaming quality, mobile gaming, video calling experiences, and 5G speed consistency have gained prominence among early 5G adopters.

Data Allowances

Ericsson ConsumerLab shared that approximately 37 percent of 5G consumers surveyed believed that increased data allowances in their 5G plans would justify premium rate charges from CSPs. This reflects the changing expectations of consumers who actively seek elevated and consistent network performance.

Also Read: Ericsson and Deutsche Telekom Partner to Create a Network Platform With APIs

Developer APIs

Another key finding is the role of Network Application Programming Interfaces (APIs) for developers in enhancing network experiences that customers are willing to pay for. Ericsson emphasised that in the 5G era, these APIs provide developers and application providers access to network capabilities, unlocking new revenue opportunities for CSPs.

Emerging Trends

The study's results also shed light on emerging trends in 5G usage. It indicates that the bundling of 5G rich enhanced video content, such as 4K, 360-degree experiences, multi-view videos, and augmented reality applications, in 5G plans is driving user engagement and mobile data consumption.

On average, 5G users reported a 47 percent increase in time spent on enhanced video formats over the past two years. Additionally, the number of daily augmented reality (AR) application users has doubled since the end of 2020.

Also Read: Airtel Surpasses 50 Million Unique 5G Users; 5G Plus Now Covers All Districts in India

In summary, Ericsson's research demonstrates the increasing willingness of 5G users to invest in premium 5G services and the evolving factors influencing their satisfaction and loyalty.

Ericsson noted that the report is based on findings of Ericsson's ConsumerLab research conducted in May and June 2023 among 37,000 plus consumers in 28 countries, reflecting the opinions of about 1.5 billion consumers, including 650 million 5G users.

Reported By

Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

Recent Comments

Rohit79 :

these buggers not giving us choice and wants consumers to settle for the poorest spec build smartphones.

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

Rohit79 :

For the first time personas, I have only one advice. Beware for these are all marketing gimmicks. From SoC naming…

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

Rohit79 :

Tbh I'm scared of Oneplus now. So I am on the lookout for Realme GT. If I gotta spend that…

Vodafone Idea Brings New Rs 26 Data Voucher after Airtel

Faraz :

Well it's 2 GB per day. & I have few more 149 plan voucher of Jio so I'll wait. If…

BSNL Launches New Rs 345 Prepaid Plan

Faraz :

If resident of capital i.e Patna is facing issue, wonder the condition for rest of the circle.

BSNL to Launch AI, ML-Based Spam Detection Solution

Load More
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments