5G consumer business: ready when you are
Commercial 5G networks are expected to go live in 2018. The first application for 5G will be enhanced mobile broadband (eMBB) primarily addressing consumers. We have looked at the business case. Our study reveals that the evolution to 5G can enable a 10 times lower cost per gigabyte than current 4G networks. Telecom operators now have a window of opportunity to considerably improve their consumer business with the help of 5G. For first movers, 5G unlocks the possibility of reshaping the market place, with increased market share, better customer experience and improved revenue streams.
Consumers are expecting more from 5G. Performance, ultra-high speed, and reliability are all part of broadening consumer expectations of the 5G experience. More than 70 percent of consumers identify performance aspects as their number one expectation to 5G according to our recent ConsumerLab report Towards a 5G consumer future. Consumers also want real-time translation hearables, multiple view-point live event experiences and immersive VR gaming to be a reality within two years of the introduction of 5G. In essence, 5G is about improving the mobile broadband services that consumers already subscribe to today and over time adding new services made possible by the new technology.
Be first to market and first to revenue, now.
First movers are likely to grow faster and more sustainably than the competition, as was proven many times during the introduction of 4G. They can gain economic advantages as well as strategic market advantages. Proactive operators attract more customers, grow their market share and increase their ARPU by providing superior experience and premium pricing and offerings.
To provide further insight to service providers that are now preparing for the commercial launch of 5G Ericsson ConsumerLab has interviewed smartphone users across 50 countries to understand what factors will drive 5G success with consumers. The insights are clear. Consumers don’t want ‘just another G’ – they want a new experience. How should service providers address the consumer expectations with the upcoming 5G launches? We have matched the consumer insights with our business and network evolution advice into factors for 5G consumer success.
The 5G consumer business case
With 5G-enabled devices expected in 2019, it is fundamental to have a network that can support the new devices. With our network technology, we enable operators to smoothly evolve from 4G to 5G and minimize the time to market when they want to turn on 5G.
Ericsson’s network technology enables evolution to 5G through natural, step-wise implementation – one that balances investment, new revenue streams and competitiveness. The result? Our economic study of eMBB shows that the evolution to 5G can enable 10 times lower cost per gigabyte than current 4G networks. By adding 4G carriers initially, followed by the introduction of technologies such as Massive MIMO and 5G New Radio cost per gigabyte will decrease stepwise.
The outcome of improving 4G networks now with 5G proof investments represents a turning point for overcoming the three biggest challenges of mobile operators: meeting the exponential data traffic growth, meeting consumer expectations on speed and quality and monetizing the customer value delivered.
Operators should leverage this window of opportunity to set their 5G deployment and marketing strategies to improve their consumer business and gain competitive advantages. The time is now.