Elevating 5G with differentiated connectivity in Singapore

Almost 4 in 10 5G users in Singapore are no longer willing to accept best-effort 5G performance

Singaporean 5G users have high expectations for their network performance. Even though 34 percent were very satisfied with network performance in 2024 – up from 28 percent in 2023 – 38 percent are no longer willing to accept best-effort 5G because they feel it no longer meets their connectivity requirements.

The country has some of the longest continuous subway tunnels in the world, and the survey indicated that 40 percent of 5G users experience slow data speeds when underground, with 27 percent suffering frequent disconnections or drops. Similarly, some 33 percent experience slow data speeds at above-ground venues, such as the National Stadium in Kallang, or Marina Bay Sands Expo and Conference Centre.  

For service providers in Singapore looking to unlock further 5G revenue growth, these findings present new opportunities. Increasing coverage and capacity in these use places will build consumer satisfaction by delivering the network experience that their customers have now come to expect.

The graphic shows the share of 5G users who experience connectivity issues in crowded areas and underground locations.

One-third of 5G users in Singapore are interested in – and willing to pay for – differentiated connectivity

Despite its small size, Singapore is one of the most densely populated countries in the world, with a technologically savvy population of over 6 million driving the need for reliable, high-capacity 5G connectivity. Ericsson ConsumerLab research shows that 33 percent of 5G users would be open to paying more for differentiated connectivity that guarantees better performance for essential tasks, such as banking and payment apps, real-time communication and streaming. 

When considering all 5G users in Singapore, 21 percent of them – a group known as “Assurance Seekers” – are actively seeking elevated connectivity for critical applications and are willing to pay more to obtain it. For service providers looking to unlock new revenue streams that address this market, they must develop actionable segmentation strategies that identify and target key consumer groups, such as the “Assurance Seekers”. 

The graph illustrates the willingness of Singaporean 5G users to pay for differentiated connectivity compared to other 5G users across the globe.

5G users in Singapore are willing to pay 50 percent more for content creation and uploading performance assurances, rather than for core services

Ericsson ConsumerLab research indicates a willingness among Singaporean 5G users to pay 50 percent more for differentiated connectivity in relation to content creation and uploading, compared to how much they are willing to pay for established – or “core” – services, such as email and social media.

Whether uploading content to TikTok or using the popular video editing app CapCut, Singaporeans are ready to embrace performance assurance. Additionally, the ConsumerLab research shows that 71 percent of 5G users expect to utilize GenAI on a weekly basis within the next 5 years, further pressing the case for service providers to upgrade their network offerings.  

The rise in these latency-sensitive applications, along with apps associated with payments and banking, AR and cloud gaming, opens up opportunities for service providers to increase revenue through the provision of differentiated connectivity and performance assurance.

The graph shows the interest that Singaporean 5G users have in differentiated connectivity and the premiums they would be willing to pay for performance assurance relating to latency-sensitive applications compared to core services. 

Transitioning towards differentiated connectivity has the potential to increase 5G consumer ARPU by 4–11 percent for Singaporean service providers

Ericsson ConsumerLab research indicates that service providers in Singapore could increase their ARPU by 4–11 percent by focusing on users that are no longer willing to accept best-effort 5G, and instead demand guaranteed service and network reliability. To achieve the increase in ARPU, service providers should aim to move from standard services to differentiated connectivity through a five-stage, non-sequential process. 

In Stage 3, service providers who enhance their offering to include 5G standalone (SA) networks and performance-based services – such as guaranteed speed-tier FWA through network slicing – could expect to see ARPU increases of 3–4 percent. Furthermore, in Stage 4, offering consumers tailored performance assurance for various segments in the market (such as content creators and live-streamers) at a larger scale could realize an ARPU increase of up to 11 percent through leveraging evolving 5G SA networks.

To sustain the growth in ARPU, service providers will eventually need to transition to a platform-based model by opening up network APIs to app developers, creating a marketplace for premium quality of service (QoS) apps that require guaranteed network performance.

The graph below shows the five transition stages, and illustrates the ARPU increases that Singaporean service providers could expect through these new business models.

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.