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.
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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.
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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.
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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.
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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.
