The advent of 5G technology has not only ushered in lightning-fast connectivity but also a profound shift in user expectations. According to a recent study by Ericsson ConsumerLab titled “5G Value: Turning Performance into Value,” a notable revelation emerges: one in every five 5G smartphone users is willing to open their wallets wider for an elevated 5G service experience. This study unveils the dynamics of 5G consumer satisfaction and the emerging factors that influence their loyalty to service providers.
Embracing a Premium 5G Experience
The research underscores a significant willingness among 5G smartphone users to pay up to 11 percent more for a premium 5G service that offers differentiation. These users are in search of a superior quality of service tailored for specific applications and locations. Their appetite for premium connectivity is driving a surge in demand for such offerings.
Loyalty in the Digital Age
The study also highlights the connection between consumer loyalty to their communication service providers (CSPs) and their 5G experiences in crucial locations, including stadiums, entertainment arenas, and airports. Unsatisfactory 5G connectivity experiences in these hotspots can make customers up to three times more likely to consider switching to a different CSP, putting the onus on providers to deliver consistent high-quality services.
Shift in Satisfaction Factors
The research reveals a shift in the factors that influence consumer satisfaction. Earlier, 5G geographical coverage was a primary consideration, but now, consumers are focusing on application-experience-based metrics. Elements such as video streaming quality, mobile gaming, video calling experiences, and 5G speed consistency have taken center stage among early 5G adopters.
Data Allowances as a Justification
Approximately 37 percent of 5G consumers surveyed believe that increased data allowances in their 5G plans would justify premium charges from CSPs. This signifies evolving consumer expectations that revolve around enhanced and consistent network performance.
Developer APIs Unlock New Opportunities
Network Application Programming Interfaces (APIs) play a crucial role in enhancing the network experience that users are willing to pay for. These APIs grant developers and application providers access to network capabilities, paving the way for new revenue streams for CSPs in the 5G era.
Unveiling Emerging Trends
The study illuminates emerging trends in 5G usage. Bundling 5G with enriched video content, such as 4K, 360-degree experiences, multi-view videos, and augmented reality applications, is driving user engagement and mobile data consumption. On average, 5G users have reported a 47 percent increase in the time spent on enhanced video formats over the past two years. Furthermore, the number of daily augmented reality (AR) application users has doubled since the end of 2020, underlining the evolving landscape of digital experiences.
In summary, Ericsson’s research reveals the increasing willingness of 5G users to invest in premium services and the shifting factors that influence their satisfaction and loyalty. The report is based on findings from Ericsson’s ConsumerLab research conducted among more than 37,000 consumers across 28 countries in May and June 2023, reflecting the opinions of about 1.5 billion consumers, including 650 million 5G users.
