Ericsson’s ConsumerLab report highlights differentiated 5G connectivity opportunities for communications service providers (CSPs), suggesting that 5G consumers are three times more likely to switch providers because of poor connectivity experiences.
More than 37,000 consumers in 28 countries were interviewed during May and June 2023, with Ericsson’s findings reflective of the opinions of about 1.5 billion consumers and 650 million 5G users.
The survey also suggests that 20% of 5G smartphone users surveyed are willing to pay a premium for differentiated quality of service over 5G. Additionally, the research reinforces the value-add business potential of network Application Programming Interfaces (APIs).
Unsatisfactory 5G levels at key locations cause customers to switch service providers
The first instalment of the 5G rollout back in 2019 marked a pivotal advancement in telecommunication technology, providing never-see-before access to unprecedented speed, capacity and connectivity. Now, it has been forecast that by the end of 2023, 1.9 billion 5G connections will be reached worldwide, which is expected to boom to nearly 6 billion by 2027.
Ericsson’s survey reveals that one-in-five 5G smartphone users seeking differentiated 5G service experiences, such as quality of service, for demanding applications are willing to pay communications service providers (CSPs) a premium of up to 11% to enjoy the value-added connectivity.
Whilst CSP business case potential for 5G as growing numbers of subscribers around the world express increased satisfaction with 5G, the Ericsson survey also reveals that unsatisfactory 5G connectivity experiences at key locations such as stadiums, entertainment arenas and airports can make customers up to three times more likely to switch communications service providers.
17% of consumers across 28 markets have switched service providers since the launch of 5G, driven primarily by issues with 5G network performance, according to Ericsson.
5G experience is now more of a consumer priority
5G network satisfaction drivers are also evolving beyond coverage with the report finding that, in markets where 5G population coverage exceeds 80%, long-time users prioritise video quality and upload speeds for the apps they use, reflecting evolving expectations.
The report identified is how 5G is reshaping video streaming and augmented reality (AR) usage. Emerging formats are increasingly driving usage and 5G data consumption as service providers include rich media content into their 5G plans. Ericsson highlights that factors that influence consumer satisfaction are changing and moving towards application-experience-based metrics such as video streaming quality, mobile gaming/video calling experience and 5G speed consistency.
Ericsson’s Chief Technology Officer (CTO), Erik Ekudden, says “in the era of 5G, network Application Programming Interfaces are business interfaces for developers and application providers giving them access to network capabilities via familiar easy to use interfaces,” he says.
He continues: “As we observe consumers expressing a willingness to pay for new functionality and differentiated quality of service, it's clear that these APIs are industry changing. They foster an environment where developers get access to 5G capabilities to deliver distinct premium experiences. For communication service providers APIs unlock new revenues by unveiling the inherent value of their networks.”
Other magazines that may be of interest - Data Centre Magazine.
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