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Ericsson ConsumerLab report busts myths surrounding the value of 5G for consumers

  • Globally, consumers see a near-term benefit from 5G, as they look forward to the technology providing relief from urban network congestion, and to bring more home broadband choices
  • Smartphone users worldwide say they are willing to pay a 20 percent premium for 5G services, while half of early adopters would pay as much as 32 percent more
  • More than half of the smartphone users in Indonesia say they would switch mobile operators within six months if their own provider does not switch on 5G

Man with VR glasses

Ericsson (NASDAQ: ERIC) has released a new ConsumerLab report, 5G Consumer Potential, which busts industry myths surrounding the value of 5G for consumers and outlines the opportunities available for communications service providers.

Backed by solid research from one of the biggest ever consumer expectation studies, the report  uncovers “consumer realities” to bust the following four common industry myths:

  1. 5G offers consumers no short-term benefits.
  2. There are no real use cases for 5G, nor is there a price premium on 5G.
  3. Smartphones will be the “silver bullet” for 5G: the magical single solution to delivering fifth-generation services.
  4. Current usage patterns can be used to predict future 5G demand.

 The key findings of the study include the fact that consumers including those in Indonesia expect 5G to provide relief from urban network congestion in the near term – especially in megacities such as Jakarta, where six in 10 smartphone users report facing network issues in crowded areas. The respondents also anticipate more home broadband choices to be available with the launch of 5G.

The report dispels the ICT industry myth that consumers are unwilling to pay a premium on 5G. In fact, globally smartphone users state that they are willing to pay 20 percent more for fifth-generation services, and half of early adopters as much as 32 percent more. However, four in 10 of these high spenders expect new use cases and payment models as well as a secure 5G network in addition to a consistently high internet speed.

Another key finding is that current 4G usage patterns are not indicative of future usage behaviors. Video consumption is set to rise with 5G. Consumers expect to not only stream video in higher resolutions but also use immersive video formats such as Augmented reality (AR) and Virtual reality (VR), resulting in an additional three hours of video content being watched weekly on mobile devices by users in the 5G future when they are out and about, including one hour wearing AR glasses or VR headsets.

Jasmeet Singh Sethi, Head of ConsumerLab, Ericsson Research, says: “Through our research, we have busted four myths about consumers’ views on 5G and answered questions such as whether 5G features will require new types of devices, or whether smartphones will be the silver bullet for 5G. Consumers clearly state that they think smartphones are unlikely to be the sole solution for 5G.”

Consumers in Indonesia expect 5G to be available within two years

In Indonesia, the report shows that around half of the smartphone users would switch mobile operators within six months if their own provider does not switch on 5G. With growing consumer awareness around 5G, the average respondent believes that 5G will become a reality within two years.

In Indonesia, the average smartphone user is ready to pay IDR 30,000 to enjoy 5G connectivity while early adopters are willing to pay a premium of IDR 50,000. In addition, the consumer expectation in the country is that services such as immersive sports and event experiences in AR and 3D holographic calls will be the top two applications to be made available in a 5G plan.

Based on consumer predicted future usage patterns, the average mobile data usage over a 5G device could increase to 60GB/month, with heavy usage smartphone users consuming as much as 110GB monthly. In addition, around 40% of Indonesian smartphone users believe that smartphones are unlikely to take full advantage of 5G capabilities and that AR glasses will become the norm by 2025.

In Indonesia, consumers expect a new internet experience with 5G, bringing positive impacts for a variety of sectors ranging from consumer applications to automotive industries. 75% believe ultra-high speed and reliable connectivity with 5G will facilitate working more on the go – like taking your office everywhere while 67 percent indicated that 5G internet connectivity in the car will be as important as fuel efficiency in the next 5 years.

“By busting these common industry myths, we have uncovered the fact that consumers in Indonesia are actually waiting for 5G and expect this new generation of mobile connectivity to be a game-changer. For operators, this translates into a first-mover advantage as well as a business potential of an additional 30 percent revenue from 5G-enabled market opportunities by 2026,” concludes Jerry Soper, Head of Ericsson Indonesia.   

NOTES TO EDITORS:

ConsumerLab – the voice of the consumer

Towards a 5G consumer future

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Ignes Messyta, Head of Communications, Ericsson Indonesia

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Ericsson enables communications service providers to capture the full value of connectivity. The company’s portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson’s investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world. The Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com