Elevating 5G with differentiated connectivity in the Philippines

Over half of all 5G users in the Philippines experience connectivity issues in crowded areas and underground locations

Ericsson ConsumerLab research shows that 55 percent of Filipino 5G users experience occasional or frequent network issues in high-traffic locations. From the massive crowds using GCash for some retail therapy at the sprawling SM Mall of Asia to the thousands trying to book a ride with apps like Grab after a sold-out concert at the Smart Araneta Coliseum, consumers expect more consistency from their networks, particularly when it concerns app experiences.

With 5G uptake expanding across the country and putting pressure on network infrastructure, these findings highlight a significant opportunity for service providers to boost 5G performance and deliver better experiences for consumers through differentiated connectivity. By enhancing 5G infrastructure, service providers can improve network access, even in areas that have traditionally had poor telecommunications services. This will enable them to enhance overall network experiences, which will have a positive impact on their net promoter scores (NPS).

Almost half of all 5G users in the Philippines are willing to pay for differentiated connectivity

Ericsson ConsumerLab research shows that 5G users in the Philippines are ready for differentiated connectivity, with 47 percent reporting that they would be open to paying for the service if it could guarantee consistent quality for essential tasks such as Viber video calls, high-definition Netflix streaming, and secure GCash payments. In fact, the share of 5G users in the Philippines who would consider paying for differentiated connectivity is higher than in most other regions around the world.

The research also reveals that one-quarter of 5G users, known as “Performance Strivers”, are actively seeking elevated connectivity for essential applications and are willing to pay for it. Meanwhile, 22 percent of 5G users, known as “Assurance Seekers”, would still prefer to pay for elevated connectivity despite being satisfied with 5G.

Developing actionable segmentation strategies is paramount for service providers looking to unlock the full revenue growth potential of 5G differentiated connectivity. These strategies should identify and target key consumer groups, such as the "Performance Strivers" and the "Assurance Seekers.”

The graph shows the willingness of 5G users in the Philippines to pay for differentiated connectivity compared to 5G users worldwide.

5G users in the Philippines are prepared to pay up to 15 percent more for performance assurance

Ericsson ConsumerLab research shows that service providers in the Philippines have a unique opportunity to capture as many as 33 percent of the 5G users who are willing to pay up to 15 percent more for performance assurance. To encourage the adoption of differentiated connectivity across the region, service providers will need to build a portfolio of elevated 5G offerings that are clear, compelling and personalized by leveraging advanced network functionalities.

For service providers looking to unlock new revenue pools in the long term, it will be essential to start exposing quality on demand (QoD) network APIs to application service providers (ASPs). This will create a marketplace for quality of service (QoS) apps with premium features that require guaranteed network performance, opening up new revenue opportunities and encouraging innovation across the Philippines, especially as technologies like generative AI (GenAI), edge computing, and immersive applications continue to evolve.

The graph below outlines the five stages of 5G revenue generation and shows that a willingness to pay 15 percent more for differentiated connectivity opens up opportunities for service providers to develop new business models.

Less than one-third of 5G users in the Philippines are satisfied with network performance

Ericsson ConsumerLab research shows that swift 5G adoption across the Philippines is putting significant pressure on network infrastructure, which is impacting user experiences. User satisfaction with 5G network performance fell from 36 percent in June 2023 to 31 percent in March 2025, while 4G satisfaction was also impacted, falling from 11 percent to 7 percent during the same period. These findings present a clear opportunity for service providers to improve user experiences by boosting network performance.

From Quezon City’s bustling business districts and towering condominiums to the vibrant, laid-back residential communities of Bulacan, the stark contrast in satisfaction levels across different locations also underscores the critical need for service providers to expand their network infrastructure. In March 2025, 5G users living in city centers reported 39 percent satisfaction, compared to 25 percent for those living in suburban areas and just 5 percent for those living in the outskirts of a city.

The graphs illustrate 5G and 4G satisfaction scores over the years in the Philippines and highlight how network performance satisfaction levels differ for users depending on where they live.