Ericsson has just unveiled its latest report titled '5G Value: Transforming Performance into Loyalty,' a comprehensive study conducted in collaboration with Ericsson ConsumerLab that delves into the factors influencing 5G network satisfaction and user retention. According to the research findings, a substantial opportunity for increased 5G adoption in India arises as approximately 31 million users are expected to make the switch to 5G phones in 2023. This notable shift in consumer behaviour signifies a promising landscape for further expansion of 5G technology in the country.
What sets 5G users in India apart is their remarkable daily engagement with various applications, including high-definition video streaming, video calls, mobile gaming, and augmented reality. On average, they spend an extra two hours per week enjoying these services compared to users in other early-adopter 5G markets like the United States, the United Kingdom, South Korea, China, and more.
Furthermore, India stands out with its impressive 5G satisfaction levels and perceived 5G network availability, which either match or surpass those in early-adopter markets. India boasts an impressive 13 per cent higher proportion of highly satisfied 5G users compared to the average in early-adopter markets. Overall satisfaction experiences a substantial 30 per cent increase when transitioning from 4G to 5G, with faster download speeds playing a pivotal role in driving this satisfaction.
The survey also underscores the significance of 5G performance in key locations, which significantly influences user satisfaction and decisions regarding switching service providers. Users facing connectivity issues at events are three times more inclined to consider changing their service providers in the next six months. Conversely, a positive 5G experience in crucial locations such as during transit or at home can boost satisfaction levels fourfold.
Jasmeet Singh Sethi, Head of Ericsson Consumer Lab, highlights that around 39 per cent of polled 5G consumers believe that increased data allowances in their 5G plans would justify premium charges from Communication Service Providers (CSPs). Interestingly, approximately 24 per cent of 5G consumers express a clear preference for differentiated Quality of Service (QoS) over 5G. Rather than settling for generic, best-effort 5G performance, these users actively seek elevated and consistent network performance, specially tailored for demanding applications and specific key locations. The research reveals that one in five smartphone users is willing to pay an average premium of 14 per cent for 5G-rich app bundled plans or QoS-led offerings.
The survey also identifies several 5G use cases that resonate with Indian consumers, who are willing to pay a premium for these services. Some of these offerings include a 3D/AR Books Digital Library, a 5G Creator Package, 5G Optimized Mobile Gaming, Immersive Replays, Enhanced Event Experiences, and more.
Jasmeet Sethi, Head of Ericsson ConsumerLab, emphasized, "The findings from our global survey underscore India's potential to lead the way in 5G adoption and usage. With a substantial portion of the population ready for 5G, the opportunities for innovation and growth in the Indian market are immense. Even as app experience is emerging as a key factor in driving satisfaction with 5G, 5G has elevated the overall network satisfaction in India by an impressive 30% compared to 4G."
Nitin Bansal, Head of Ericsson India and Head of Network Solutions, Southeast Asia, Oceania, and India at Ericsson, anticipates that mmWave technology will serve as the foundation for the next wave of 5G growth in India, given the rapid adoption of 5G, escalating data traffic, and the introduction of Fixed Wireless Access (FWA) offerings by service providers.
This comprehensive Consumer Lab Study, conducted earlier in the year, represents the perspectives of 1.5 billion consumers across 28 global markets. In India, the survey encompasses the insights of 50 million 5G users and 250 million consumers residing in tier 1-3 cities. Globally, 10,000 active 5G users were interviewed, encompassing a total of 650 million 5G users worldwide.
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