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Ericsson ConsumerLab: Saudi Arabian 5G consumers willing to pay premiums for enhanced connectivity experiences

Available in English العربية
Press release
Nov 23, 2023
Cover image of Ericsson ConsumerLab report -  5G Value: Turning Performance into Value - Ocoter 3 2023

A new Ericsson (NASDAQ: ERIC) ConsumerLab report titled "5G Value: Turning performance into loyalty"  has revealed some unique insights and consumer trends about 5G in the Kingdom of Saudi Arabia (KSA).

The satisfaction and user-loyalty-focused report highlights the Communications Service Providers (CSPs) business case potential for 5G as growing number of subscribers around the world including KSA express increased satisfaction with 5G.

It also reveals that unsatisfactory 5G connectivity experiences at key locations such as stadiums, entertainment arenas and airports can make customers globally up to three times more likely to switch communications service providers.

The comprehensive research reflects the views of 1,150 consumers surveyed in KSA, including 540 active 5G customers, and represents 37 million 5G users and 68 million consumers in the Kingdom. The report is part of the comprehensive Ericsson research series, which has tracked the evolution of the 5G consumer market since 2019. 

The research also shows that the factors influencing consumer satisfaction in KSA are related to traditional metrics such as mobile data upload and download speeds, but also more application-experience-based metrics such as video streaming quality, and 5G coverage at indoor locations.

Håkan Cervell, Vice President and Head of Saudi Arabia and Egypt at Ericsson Middle East and Africa, says: "Our latest ConsumerLab report underlines the remarkable journey of 5G in the Kingdom of Saudi Arabia as the digital landscape continues to evolve. The data reveals not only the growing satisfaction with 5G network performance but also the shift in consumer preferences towards richer, application-driven experiences. The surge in user engagement, the changing dynamics of loyalty, and the willingness to pay more for premium connectivity underscore the exciting prospects that lie ahead for both consumers and the industry. Our commitment is to continue working with our partners to enable consumers, businesses, and communities experience the transformative power of 5G.’’

Other findings

The report addresses how a surge in 5G user engagement, and consequently mobile data consumption, is driven by the bundling of 5G rich enhanced video - such as 4K, 360-degree experiences, multi-view videos and augmented reality (AR) applications - on 5G plans.

On average, 5G users globally report a 47 percent increase in time spent on enhanced video formats over the past two years. The number of daily augmented reality (AR) application users has doubled since the end of 2020.

The report identifies four key trends in the Kingdom of Saudi Arabia:

5G network satisfaction drivers are evolving to application experience. There has been a 10% year-on-year increase in the number of users highly satisfied with overall 5G network performance in the KSA. 54 percent of users are very happy with their 5G network performance, which is among the highest shares globally.

5G is reshaping video streaming and AR usage. The advent of 5G is significantly impacting video streaming and augmented reality (AR) usage. Users with innovative service bundles spent almost 60 percent of their total video streaming time on enhanced video content or AR, while those without such bundles spent around 40 percent of their time on immersive content.

5G performance at key locations influences consumer loyalty. Consumer loyalty in 5G is heavily influenced by network performance at key locations. In the KSA, 28 percent of 5G users have switched service providers since the launch of 5G. More than 50 percent of those who changed operators did so primarily due to the 5G network's performance. The main performance related reasons for switching included network speed, 5G indoor and outdoor coverage.

5G consumers are willing to pay premiums for differentiated connectivity. 5G consumers are willing to pay premiums for an enhanced connectivity experience. 30 percent of smartphone users in KSA would like their plans to include speed-based tiers to justify a price increase, and 20 percent would like to see quality of service (QoS)-led offerings. Notably, smartphone users are willing to pay an average premium of 11-13 percent for QoS-led offerings.  

Methodology

More than 37,000 consumers in 28 countries were interviewed during May and June 2023. The research scope is reflective of the opinions of about 1.5 billion consumers, including 650 million 5G users.

Read the full report: 5G Value: Turning performance into loyalty

 

NOTES TO EDITORS

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