Ericsson: Consumers will pay for superior 5G experience

A new study by Ericsson ConsumerLab reveals over one-in-five Canadian 5G smartphone users are willing to pay a premium for a 5G plan that ensures elevated network performance, particularly in areas of quality of experience and network performance, that caters to high-performing video streaming, gaming, and other popular apps to boost user satisfaction.

Head of Ericsson ConsumerLab, Jasmeet Singh Sethi, says: "Canadian 5G users have high expectations for their service; they're seeking not just connectivity but rather differentiated connectivity where it matters most like crowded arenas or public indoor locations, the value-added experience that enhances daily activities,” says Sethi. "Our findings reveal that if these expectations aren't met, consumers are three times more inclined to switch to a provider that can deliver a superior 5G experience, with twenty two percent of users willing to pay nine per cent more for a service that offers differentiated quality of experience over 5G."

The Ericsson report offers  four priorities for service providers:

• 5G network satisfaction drivers are evolving beyond coverage. Post 5G buildout, service providers would benefit from prioritizing network optimizations that cater to high-performing video streaming, gaming, and other popular applications to boost user satisfaction.
• 5G is reshaping video streaming and augmented reality (AR) usage. On average, Canadian 5G users report a 28 per cent increase in time spent streaming video in HD/4K format per day and a 59 per cent increase in time spent on watching multi-view video streaming compared to 2022. Service providers looking to increase customer engagement should offer innovative service bundles to leverage the rising demand for new video formats and AR, driven by 5G.
• 5G performance at key locations influences consumer loyalty. Since the launch of 5G in Canada, a substantial 20 per cent of consumers have changed their service provider, and the primary driving factor behind this shift is 5G network performance. Remarkably, nearly 46 per cent of those who've made the switch did so due to the quality of their 5G network. Service providers should prioritize enhancing 5G performance in key locations to boost consumer loyalty and minimize churn rates.
• 5G consumers will pay premiums for differentiated quality of experience . Forty-one per cent of users demand more data to justify a price increase, and 17 per cent are looking for bundles with innovative services, while 22 per cent expect superior performance and prioritize connectivity. Service providers should explore differentiated 5G monetization strategies with speed tiers, content bundles, and QoS-based pricing, leveraging 5G SA capabilities and targeted segmentation.

https://www.ericsson.com/en/press-releases/6/2023/users-willing-to-pay-more-for-best-quality-5g