Ericsson Survey Sees AI Apps Driving Demand for Differentiated 5G Connectivity Plans

Ericsson Survey Reveals AI Apps Driving Demand for Differentiated 5G Connectivity Plans
5G Smartphone users using Generative AI (Gen AI) applications are willing to pay more for differentiated connectivity. A new global study by Ericsson ConsumerLab reveals a surge in demand for differentiated connectivity as 5G users increasingly adopt Gen AI applications. According to the report, differentiated connectivity refers to guaranteed, uninterrupted, high-end connectivity when you need it most. A global survey found that one in four Gen AI users are willing to pay up to 35 percent more for differentiated connectivity to ensure fast and secure connectivity for high-capacity AI apps.

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Interest in Premium Connectivity

The report, “Elevating 5G with Differentiated Connectivity,” finds that the number of smartphone users engaging with generative AI apps on a weekly basis is set to grow 2.5 times over the next five years. Ericsson notes that this category joins existing differentiated connectivity use cases, such as video calling, streaming, and online payments, for which smartphone users say they are willing to pay a premium.

Ericsson’s research shows that 35 percent of 5G smartphone users surveyed would be interested in paying for differentiated connectivity for essential applications.

Regional Differences in Demand

The report highlights regional differences, with markets such as India, Thailand, and Saudi Arabia showing double the share of smartphone users interested in differentiated connectivity compared to markets such as France and Spain.

The findings also point to a revenue opportunity for Communications Service Providers (CSPs) as they shift toward performance-based business models, potentially boosting 5G ARPU by 5-12 percent.

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Users Willing to Pay Extra

Ericsson notes that, contrary to the belief that users will not pay extra for connectivity, the survey identified 20 percent of users, known as ‘Assurance Seekers’, actively seeking elevated connectivity for critical applications and are willing to pay for it.