UK consumers need more to help them on their 5G journey

5G’s early impact on UK consumer behaviour

The latest Ericsson ConsumerLab report, representative of 1.3 billion smartphone users worldwide, reveals how 5G is already beginning to trigger new smartphone behaviours among UK consumers. What people are using 5G for gives us a fascinating glimpse into the potential of 5G to transform our digital habits. For example, in the UK, 5G early adopters spend three hours more per week on AR apps and cloud gaming on their phone compared to a 4G user. And with more time being spent on bandwidth-intensive apps, it is perhaps unsurprising that 5G users in our latest survey saw a monthly data usage increase of 3 times compared to 4G users.

What might be surprising though is just how important consumers are finding 5G indoors. While we have traditionally viewed smartphones as portable, on the go devices, the power of 5G and an enforced lockdown seems to have increased the use of 5G as an in-home replacement for wireless broadband. One in five UK consumers has decreased Wi-Fi use on their handset as a result of their 5G connection, while good 5G indoor coverage, at home and in public places like stores, is relatively more important than faster speeds and even better battery life in driving overall consumer satisfaction.

A huge opportunity for operators

The way consumers are using 5G, in their increased engagement, consumption of data, and reliance on the network as their primary internet connection – along with the technology’s potential to further complement home broadband through Fixed Wireless Access (FWA) – speak to the potential for much greater reliance on their network operator, and a desire for a closer relationship too.

The ConsumerLab survey highlighted that 5G users are more likely to be satisfied with their operator if they are on 5G. In the UK, Net Promoter Score (NPS), a measure of brand loyalty for service providers, was 24 among those using 5G, compared to just 1 among those using 4G.

In fact, those users that are most satisfied with their 5G network performance are much more likely to recommend their providers, so not only does being on a 5G plan lead to stronger customer relationships, but UK consumers are also willing to pay a 10 percent premium for 5G connectivity too.

However, with that 5G network performance comes a much greater demand from consumers.  66% of those surveyed in the UK are not completely satisfied and expect more innovative services to be offered. We already know that there is huge potential to be unlocked in the UK through 5G, so the fact that consumers remain somewhat underwhelmed with the lack of innovative applications indicates we are yet to hit the sweet spot in terms of value added services.

More is needed to convince consumers to switch

The opportunity is clear, and at least five million people in the UK are interested in signing up to 5G this year - what a fantastic opportunity for the UK to move forward with its goal of being a global 5G leader! However, the report also highlights some work ahead for telecommunications industry leaders.

The majority of UK consumers seem confused about what 5G is and what it can offer, and a significant proportion either do not have a 5G phone or a 5G subscription. Three percent of UK consumers think they are on 5G, but have a phone that’s only capable of 4G (!), so there is certainly more to be done to address the knowledge gap in terms of consumer education and that starts with better marketing of the value of 5G.

Clearly those already using 5G are enjoying the benefits and are largely positive, so that’s something that we can all get on board with in terms of potential, but as we soon start to find a little more freedom post lockdown I am sure that we will see new opportunities to address the knowledge gap as consumers begin to rethink their options including their device, mobile plan, and what they use it for.

So, with newly released spectrum, encouraging signs from the government to break down barriers to deployment and the grip of the pandemic weakening, the UK has a great opportunity to burst into life with an accelerated 5G rollout and consumer adoption. This ConsumerLab data maps a clear journey to a better 5G for consumers in the UK and I’m looking forward to supporting all our customers in the months ahead.

The report makes some tangible recommendations for operators to seize the opportunity and accelerate 5G adoption, as well as providing further information on UK consumers and others around the world. For a deeper insight into the findings from Ericsson’s ConsumerLab report, click here.