20% of 5G smartphone users are willing to pay more for differentiated service quality in 5G, according to a new study by Ericsson’s ConsumerLab. The study, titled “5G Value: Turning performance into loyalty,” focuses on user satisfaction and loyalty and highlights the profitability potential of 5G for operators as more subscribers worldwide express increasing satisfaction with the technology.
The study also reveals that unsatisfactory 5G connectivity experiences in key locations such as stadiums, entertainment venues, and airports can make customers up to three times more likely to switch service providers.
Reflecting the opinions of approximately 1.5 billion users worldwide, including 650 million 5G users, this study is part of Ericsson’s ongoing research on the 5G market since 2019.
The study also shows that the factors influencing consumer satisfaction are changing, shifting from primarily considering 5G coverage to more application-focused measures such as video streaming quality, mobile gaming and video calling experiences, and 5G speed consistency, especially among early 5G adopters.
The report emphasizes how user engagement with 5G and the resulting mobile data consumption are driven by data-intensive enriched video formats, such as 4K videos, 360-degree experiences, multi-view videos, and augmented reality applications.
On average, 5G users report a 47% increase in time spent on enhanced video formats in the past two years. The number of daily users of augmented reality applications has doubled since the end of 2020.
The report identifies four major trends:
1. Satisfaction factors for 5G networks are evolving beyond geographic coverage. New 5G users still value 5G coverage and speed. In markets where 5G population coverage exceeds 80%, long-term users prioritize video quality and download speeds for the applications they use, reflecting the evolution of their expectations.
2. Augmented reality and video streaming are redefining 5G. New formats are increasingly driving usage and data consumption in 5G, with operators including enriched media content in their 5G plans.
3. 5G service quality in key locations influences consumer loyalty. Nearly 17% of users in 28 markets have switched providers since the launch of 5G, dissatisfied with their 5G network experience. A determining factor is the 5G experience in critical locations such as airports and major event venues.
4. 5G users are willing to pay more for differentiated connectivity. 20% of smartphone users expect differentiated 5G connectivity. These individuals value superior connectivity and are willing to pay up to 11% more for a 5G plan that ensures better network quality.
Overall, the study highlights the importance of providing high-quality and differentiated 5G services to meet the evolving expectations of users and retain customer loyalty.20% des utilisateurs de smartphones 5G sont prêts à payer plus pour une qualité de service différenciée en 5G, selon une nouvelle étude du ConsumerLab d’Ericsson. Cette étude, qui reflète les opinions d’environ 1,5 milliard d’utilisateurs dans le monde, dont 650 millions d’utilisateurs 5G, met en évidence le potentiel de rentabilité de la 5G pour les opérateurs.
Selon le rapport intitulé “5G Value : Turning performance into loyalty”, de plus en plus d’abonnés dans le monde entier se déclarent satisfaits de la 5G. Cependant, des expériences de connectivité insatisfaisantes dans des lieux clés tels que les stades, les espaces de divertissement et les aéroports peuvent rendre les clients jusqu’à trois fois plus susceptibles de changer de fournisseur de services de communication.
Les facteurs influençant la satisfaction des consommateurs évoluent également. Alors que la couverture géographique de la 5G était auparavant un
What steps can operators take to address connectivity issues in key locations like stadiums, entertainment venues, and airports to prevent customer churn
Ing are driving increased engagement with 5G. The study highlights the growing popularity of data-intensive enriched video formats and augmented reality applications among 5G users. It reveals that 5G users have reported a 47% increase in time spent on enhanced video formats in the past two years, and the number of daily users of augmented reality applications has doubled since the end of 2020.
3. Unsatisfactory 5G connectivity experiences can lead to customer churn. The study found that customers who have unsatisfactory 5G connectivity experiences in key locations such as stadiums, entertainment venues, and airports are up to three times more likely to switch service providers. This highlights the importance of delivering reliable and high-quality connectivity in these areas to retain customers.
4. Differentiated service quality has value for 5G smartphone users. The study shows that 20% of 5G smartphone users are willing to pay more for differentiated service quality in 5G. This indicates that there is a market for premium 5G services that offer better performance and user experience, presenting an opportunity for operators to increase profitability.
Overall, the study suggests that as more subscribers worldwide express increasing satisfaction with 5G technology, there is significant potential for operators to capitalize on the profitability of 5G. However, operators need to address issues such as connectivity in key locations and focus on delivering superior service quality to meet the evolving expectations of 5G users.
