Three key priorities for service providers in Canada are revealed in our new ConsumerLab report - 5G: The Next Wave. This is the biggest 5G global consumer study to date, with interviews held online with 49,100 consumers across 37 global markets. These included interviews with 1,200 consumers in Canada held between April and July 2022. The views of over 1.7 billion consumers globally, including those of 24 million Canadian consumers, are represented.
Markets around the world are seeing a seeing 5G subscriptions start going beyond early adopters to the next wave of more mainstream 5G users. This happens when a market reaches around 15 percent penetration. Our research shows that Canada is coming closer to reaching the next wave, with 5G market penetration currently at 9 percent.
The views of Canadian consumers largely reflect the global trends highlighted in our research. Consumers globally are still planning to upgrade to 5G during 2022, despite spiraling inflation, elevated food and energy costs, and rising interest rates. In Canada, 17 percent say they still intend to upgrade to 5G in the next 12 months. It is also clear that 5G users in Canada value reliable connectivity, with around 8 in 10 existing 5G users in Canada saying that despite rising costs, they are not willing to go back to 4G.
Priorities for Canadian service providers
A closer examination of the trends and underlying data for Canadian consumers reveals that service providers in Canada need to:
- Address the knowledge gap
- Ensure network experience
- Explain proof of value
Let’s take a closer look at the data behind these priorities, and explore how Canadian service providers can respond, and by doing so, create opportunities.
Address the knowledge gap
A total of 15 percent of Canadians claim they are on 5G but use a 4G handset, while 18 percent own a 5G capable device but are on a 4G subscription
Service providers in Canada would benefit from offering incentives for 5G service upgrades to 5G-ready smartphone owners, while also driving awareness of the advantages of 5G technology among Canadians.
Ensure network experience
In Canada, 45 percent of 5G users continue to believe that they face coverage issues, while only a third perceive being connected to 5G more than 50 percent of the time
Benchmarking on 5G speeds or population coverage alone does not provide a good measure of end-user experience. Service providers looking to increase customer satisfaction should inform consumers of 5G’s real-world availability as well as its performance.
Explain proof of value
Our research reveals that 17 percent of Canadians plan to sign up to a 5G plan over the next 12-15 months. Of these, 13 percent need to buy a 5G phone and 4 percent already own a 5G phone.
Therefore, Canadian service providers need to work hard to demonstrate the value of 5G, by showcasing a value proposition that extends beyond increased speed and more gigabytes, and by offering differentiating experiences on rich media and apps such as gaming, enhanced video and XR.
The importance of perceived 5G availability
A significant insight to emerge from our global ConsumerLab study 5G: The next wave is that perceived 5G availability is emerging as the new satisfaction benchmark, especially among the next wave of 5G users.
While 5G population coverage in Canada reaches 75 percent of the population, only 33 percent of 5G users typically perceive being connected to 5G more than 50 percent of the time.
Of those Canadian consumers who perceive high 5G availability, 60 percent are satisfied with their 5G service provider. However, A total of 45 percent of 5G users in Canada always or often encounter issues when connected to a 5G cellular network, with the most severe issue being lack of adequate coverage.
Looking towards the 5G future
The way in which 5G users continue to be more engaged with immersive digital services than 4G users point to how 5G will be used going forward.
Our research shows that globally, the amount of time spent on AR apps by 5G users has now doubled to two hours per week more than that of 4G users. In Canada, twice as many 5G users are engaging with more than three services each day, compared to 4G users.
In this context, it is worth noting the need for 5G monetization models to evolve. Across global 5G deployments, the majority of service providers are still providing the same types of service offerings that they did for 4G, leaving consumers’ desire for innovative 5G experiences unmet. The majority of consumers we surveyed in 2022 made it clear that they want to see innovative 5G experiences included on their mobile broadband plans, and 6 in 10 said they wanted 5G plans to offer more than just bandwidth.
The way in which 5G adoption is paving the path to metaverse offers a huge opportunity for service providers.
Here in Canada, 1.6 times more 5G users engage in metaverse activities on a weekly basis compared to 4G users, and they spend an average of 2 hours more per week than 4G users on metaverse-related activities such as gaming, socializing, and shopping in virtual worlds.
By doing more to promote 5G to their customers, and by ensure that their subscribers are receiving the 5G service that they want – instead of the service that they previously received for 4G – service providers can start paving their own paths to the 5G future.
