Ericsson: 5G pacesetters twice as likely to grow revenue

New research by Ericsson shows that “5G pacesetters” are likely to grow revenue two times faster than other communications service providers (CSPs)

5G pacesetters - the front-running communications service providers (CSPs) currently driving the global demand for consumer 5G - are three times more likely to retain customers and almost twice as likely to grow average revenue per user (ARPU) and mobile services revenues compared to other CSPs. Those are some of the findings in the new 5G Pacesetters report from Ericsson ConsumerLab. 

The report, called 5G Pacesetters: winning in the eyes of consumers and growing revenues, is the industry’s first consumer 5G market analysis to combine consumer satisfaction data with market facts, assessing the 5G maturity and market revenue strategies of 73 CSPs across 22 markets globally, based on 105 criteria.

Erik Ekudden, CTO, Ericsson, says: “A commitment towards technology leadership and network quality is key to unlock CSP 5G revenue growth by enhancing the core consumer business while at the same time exploring new business opportunities. Not surprisingly, 5G Pacesetters seek new ways of challenging industry conventions to make 5G connectivity more relevant to people, business, and society.”

Jasmeet Singh Sethi, Head of ConsumerLab, Ericsson Research, says: “5G-enabled consumer services can unlock up to US$3.7trn in cumulative revenue opportunities for communications service providers (CSPs) by 2030. This report outlines that 5G pacesetters who can demonstrate an ability to adopt new technologies, influence consumer perception, and are prepared to invest and focus on 5G service innovation, are already stepping ahead of competitors in the race to new revenue opportunities. 

“By exploring new 5G-enabled opportunities, more CSPs can become 5G pacesetters and grow their revenues at the same rate,” he added.

The four stages of 5G maturity identified by Ericsson’s research


The Ericsson ConsumerLab report identifies four stages of 5G maturity: 5G Explorers – those at the start of their 5G journey; 5G Potentials - CSPs with satisfied consumers due to better performing 4G networks but have not invested much on evolving 5G network and offerings; 5G Aspirationals - CSPs perceived as market challengers aiming high with 5G while striving to improve consumer satisfaction; 5G Pacesetters - who are more advanced in setting the pace on delivering best in class 5G coverage, performance, and innovation but still have room to improve even further.

5G Pacesetters - the one-in-five of the studied CSPs widely perceived by consumers to be the market leaders within the 5G consumer segment are not necessarily market share leaders or incumbents in their local markets.

They are characterised by the best net promoter score (NPS) in their markets as well as driving innovation by already offering on an average of three consumer 5G services such as cloud gaming, immersive video (AR/VR) and 5G fixed wireless access.

While advanced 5G markets in North-East Asia and North America account for the largest share of CSPs in the 5G Pacesetter category, one-third are in Europe.



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