- Consumers see a near-term benefit from 5G, as they look forward
to the technology providing relief from urban network congestion,
and to bring more home broadband choices
- Smartphone users say they are willing to pay a 20 percent
premium for 5G services, while half of early adopters would pay as
much as 32 percent more
- One in five smartphone users' data consumption could reach more
than 200GB per month on a 5G device by 2025
WASHINGTON, May 7, 2019 /PRNewswire/ -- Ericsson (NASDAQ:
ERIC) has released a new ConsumerLab report, 5G Consumer Potential,
which busts industry myths surrounding the value of 5G for
consumers and outlines the opportunities available for
communications service providers.
Backed by solid research from one of the biggest ever consumer
expectation studies, the report looks at the potential of 5G to
benefit consumers, uncovering certain realities about them
("consumer realities") to bust the following four common industry
myths:
1. 5G offers consumers no
short-term benefits.
2. There are no real use
cases for 5G, nor is there a price premium on 5G.
3. Smartphones will be the
"silver bullet" for 5G: the magical single solution to delivering
fifth-generation services.
4. Current usage patterns
can be used to predict future 5G demand.
The study brings some sense of reality to the ongoing debate in
the ICT industry about whether there is an opportunity for a
premium consumer offering based on 5G's extra capabilities.
The key findings of the study include the fact that consumers
expect 5G to provide relief from urban network congestion in the
near term – especially in megacities, where six in 10 smartphone
users report facing network issues in crowded areas. The
respondents also anticipate more home broadband choices to be
available with the launch of 5G.
The report also dispels the ICT industry myth that consumers are
unwilling to pay a premium on 5G. In fact, smartphone users state
that they are willing to pay 20 percent more for fifth-generation
services, and half of early adopters as much as 32 percent more.
However, four in 10 of these high spenders expect new use cases and
payment models as well as a secure 5G network in addition to a
consistently high internet speed.
Another key finding is that current 4G usage patterns are not
indicative of future usage behaviors. Video consumption is set to
rise with 5G. Consumers expect to not only stream video in higher
resolutions but also use immersive video formats such as Augmented
reality (AR) and Virtual reality (VR), resulting in an additional
three hours of video content being watched weekly on mobile devices
by users in the 5G future when they are out and about, including
one hour wearing AR glasses or VR headsets. The study also reveals
that one in five smartphone users' data usage could reach more than
200GB per month on a 5G device by 2025.
From these insights and more, Ericsson ConsumerLab has drawn up
a consumer roadmap of use cases involving 31 different applications
and services. The roadmap is divided into six use-case categories,
namely: entertainment and media; enhanced mobile broadband; gaming
and AR/VR applications; smart home and fixed wireless access;
automotive and transportation; and shopping and immersive
communications.
Jasmeet Singh Sethi, Head of
ConsumerLab, Ericsson Research, says: "Through our research, we
have busted four myths about consumers' views on 5G and answered
questions such as whether 5G features will require new types of
devices, or whether smartphones will be the silver bullet for 5G.
Consumers clearly state that they think smartphones are unlikely to
be the sole solution for 5G."
This latest Ericsson ConsumerLab study is based on 35,000
interviews with smartphone users aged 15 to 69, carried out in 22
different countries. The views of the participants are
representative of almost 1 billion people. To gain a perspective on
industry sentiment regarding the consumer value of 5G, a further 22
interviews were conducted with experts including academics as well
as senior executives working for telecom operators, handset and
chip manufacturers, start-ups and think tanks.
Download the report.
NOTES TO EDITORS:
ConsumerLab – the voice of the consumer
Towards a 5G consumer future
Find out more about Ericsson 5G.
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media.relations@ericsson.com (+46-10-719-69-92)
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ABOUT ERICSSON:
Ericsson enables communications service providers to capture the
full value of connectivity. The company's portfolio spans Networks,
Digital Services, Managed Services, and Emerging Business and is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's investments in innovation have
delivered the benefits of telephony and mobile broadband to
billions of people around the world. The Ericsson stock is listed
on Nasdaq Stockholm and on Nasdaq New York.
www.ericsson.com
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PDF version of press
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https://news.cision.com/ericsson/i/consumerlab-5g-report,c2620641
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ConsumerLab 5G
report
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