Customer satisfaction with 5G has shifted from considerations such as geographical coverage to more application-experience-based metrics such as video streaming quality, mobile gaming/video calling experience, and 5G speed consistency.
To enjoy this value-added connectivity, one in five 5G smartphone users are willing to pay communications service providers (CSPs) a premium of up to 11%, according to new research from Ericsson ConsumerLab.
Jasmeet Singh Sethi, Head of Ericsson ConsumerLab, said, “Interestingly, about one-in-five 5G smartphone users polled expressed a clear preference for differentiated quality of service connectivity. Rather than settling for generic, best-effort 5G performance, these users are actively seeking elevated and consistent network performance, especially tailored for demanding applications and specific key locations. The research shows they are willing to pay an 11 percent premium if their service provider offers it.”
Ericsson ConsumerLab’s report also found that 5G user engagement is being driven by the bundling of 5G-enhanced video such as 4K, 360-degree experiences, multi-view videos and augmented reality (AR) applications.
On average, 5G users report a 47 percent increase in time spent on enhanced video formats over the past two years, while the number of daily AR application users has doubled since the end of 2020.
If CSPs are unable to provide satisfactory 5G connectivity experiences at key locations such as stadiums, entertainment arenas and airports, customers are three times more likely to switch service providers, found the Ericsson ConsumerLab report, which reflected the views of about 1.5 billion global consumers, including 650 million 5G customers.