Ericsson released the Ericsson Consumer Lab report titled: '5G value Turning performance into loyalty'. In the study, Ericsson covered 28 global markets. The sample represents 1.5 billion consumers. Ericsson also met with 50 million users in India.
The report found that consumer expectations for 5G are high and that they expect new services, improved experience, faster speeds, and more reliable coverage. It also found that 5G is expected to give users more control over their data, with the potential to improve user privacy. Additionally, users expect 5G to provide more personalized services that are tailored to their needs.
The report also highlighted that users are looking for transparent pricing, especially for data packages, and that they are willing to pay a premium for 5G services. Finally, the report found that users expect 5G to enable new services such as virtual/augmented reality, gaming, and the Internet of Things.
Globally, 10% users are highly satisfied with overall 5G network performance, and it has increased by 10 percent. For 5G newcomers, key factors influencing overall 5G network satisfaction include: mobile data upload speeds, extent of 5G outdoor coverage, and voice experience. As 5G coverage is already built out in these markets, and improving, most users seem to be satisfied with these aspects.
In contrast, experienced 5G users, have different priorities driving their satisfaction. These include mobile upload and download speeds, app experience KPIs like video streaming quality, mobile gaming, and video calling experience, and consistency of 5G speed. The importance of video streaming experience in driving satisfaction is 20% higher than for 5G newcomers.
5G is also reshaping video streaming and AR usage. 47 % 5G users reported 47 percent increase in time spent on enhanced video formats.
Growth in India
Jasmeet Sethi, Head of Ericsson ConsumerLab, said we are now witnessing the launch of 5G across towns and cities in India. As per the report, 2 out of 10 users in India plan to buy new 5G handsets over the coming six months. 5G users in India are outpacing their global counterparts in daily engagement with apps on their mobile phones.
Over +2 hours more usage per week was spent on an average by 5G users in India. 15% more daily users in India are using apps than other growing markets. India has 13% higher share of very satisfied 5G users than early adopter markets, such as South Korea, China, and USA.
5G has stepped in to elevate the user satisfaction. Users are advanced and data hungry. Five key KPIs driving 5G adoption in India are video experience, coverage at home, video call experience, outdoor coverage, and video streaming experience. In contrast, USA has KPIs, such as mobile data upload speed, voice experience, video streaming experience, mobile data download speeds, and consistency of speeds.
5G performance in important use places also triggers the switching decision. 5G matters in a bus, car, and train on the go. It also works in the subway and metro, at home, shopping streets, and public transport hubs.
31 million users across India plan to buy 5G smartphones in 2023. 5G early adopters in India are more advanced. 5G satisfaction levels are high in India. Indian consumer appetite and willingness to pay for novel use cases is also increasing. 15% of Indian consumers are interested in adding application bundles, including video on demand, gaming, and music, to 5G plans, even at a higher cost. They are prepared to pay 14% premium for these services.
When introduced to eight innovative 5G use cases, user interest jumps to 44%. These vary from live streaming plans for content creators offering faster upload speeds, to AI-optimized mobile gaming to reduce lag, to 5G-powered AR tools that offer immersive reading of children’s books.
5G satisfaction levels are high in India. If we look at 4G vs. 5G network satisfaction score among smartphone owners in India, 5G elevates the overall satisfaction by a remarkable 30% compared to 4G.
New monetization routes
Ericsson is now looking at new monetization routes beyond flat rate unlimited. Globally, 5G consumers are willing to pay a premium for differentiated connectivity. Globally, Ericsson is also witnessing rise of prioritized 5G QoS offerings. Examples include Optus from Australia, 3 from Hong Kong, and Digi from Malaysia. Services offered include turbocharging, live events streaming, and gaming.
App bundles and QoS-led offerings have strong potential to drive 5G premium. 14% smartphone users are willing to pay average premium of 14% for 5G-rich bundled apps or QoS-led offerings.
5G has now taken to real-time data delivery. The use cases include enhanced event experience, 5G creator package, and 5G optimized mobile gaming. Even gamers are willing to pay an extra $6 on average. Lot of use cases are now available.
Next phase of growth
Nitin Bansal, Head of Ericsson India, and Head of Network Solutions, South east Asia, Oceania and India, Ericsson, added that we are now driving the next phase of growth in 5G. Ericsson achieved the fastest rollout, and 100% massive MIMO. We are now moving on to the next phase.
India will experience rising data demand over the next few years. We now need to build capacity and performance. Ericsson is now looking at spectrum efficiency, number of sites, etc. mmWave is an enabler for network capacity. It is up to the operators to decide when to deploy this.
FWA is also driving 5G globally. It is forecast to reach 300 million users by 2028. The definition of experience will evolve, and be governed by multiple factors ranging across user experience, preference, etc.
Ericsson is now evolving their mmWave radios. It is also having very strong industry collaborations.