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5G value: Turning performance into loyalty

5G value in Canada

Turning performance into loyalty

Discover four key trends for capturing 5G value

Ericsson ConsumerLab has conducted research across 28 global 5G markets, identifying four key trends for capturing 5G value, giving communications service providers vital insights into what drives 5G network satisfaction and user retention. So, what does the research reveal about capturing 5G value in Canada? We have analyzed data specific to Canada for the four key trends highlighted in the global study.

What do Canadians want from 5G?

The way consumers engage with 5G is changing — this opens new opportunities for service providers to capture 5G value.

Ericsson ConsumerLab has identified four key consumer trends following online interviews, held between May and June 2023 in Canada, with 1,220 consumers, including 600 active 5G users. These respondents statistically represent the opinions of online population comprising 21 million Canadian consumers, of which 12 million are 5G users.

What consumers want from 5G

Four key Canadian findings

1. 5G network satisfaction drivers are evolving beyond coverage

5G network satisfaction is improving. Our survey outlines a 12 percent year-over-year (YoY) increase in consumer satisfaction with 5G network performance in Canada. This improvement can be attributed to more 5G devices in the market, faster network speeds and an increase in 5G availability. Globally, 5G consumer satisfaction drivers are evolving from network coverage and download speeds to more app experience metrics like quality of video streaming, video calling or gaming. A similar trend has been seen among 5G early adopter power users who now value consistency in 5G speeds, indoor coverage at home and at public places and better 5G upload speeds. Communications service providers must pivot from traditional metrics to actively track and measure the quality of experience for key apps over 5G, ensuring that performance aligns with the nuanced demands of modern applications beyond mere coverage and speed.

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2. 5G is reshaping video streaming and AR usage

Emerging video formats like HD/4K video, 360-degree video and multi-view streaming are driving a surge in app engagement over 5G networks, resulting in higher mobile data traffic. There is a 28 percent increase in time spent on streaming video in HD/4K format per day and a 59 percent increase in watching multiview video streaming compared to 2022. In addition to this, the share of daily users now engaging with augmented reality applications has doubled when compared to 2022. This shows that when Canadians have a valuable experience, they are more likely to consume more content while on the go.

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3. 5G performance at key locations influences consumer loyalty

Canada still has a consistent switcher market. A total of 20 percent of consumers have switched their service provider since 5G launched in Canada, driven primarily by 5G network performance followed by better pricing. Among those who have made the switch, almost 46 percent have done so due to 5G network performance. Our survey also shows that 18 percent of those 5G users encounter issues at airports, and 20 percent report that they face issues at stadium and concert venues. Poor 5G performance at these critical use places affects brand advocacy measured using net promoter scores (NPS). Poor 5G performance in public locations that matter most to consumers such as event venues or airports results in a 20-point NPS drop for service providers’ 5G network performance brands, leaving these users more vulnerable to switching providers.

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4. 5G consumers are willing to pay a premium for connectivity

Imagine attending a live concert at a bustling stadium and being able to instantly boost your phone’s upload speeds to share high-definition streams without a glitch or settling in for a remote work session at a coffee shop and seamlessly obtaining low-latency connections to ensure crystal-clear video conferencing. This is the promise of differentiated connectivity — a dynamic approach to network service that allows consumers to enhance their internet performance on demand, tailored to the specific requirements of their location or the applications they are using.

22 percent of Canadian 5G smartphone users expect differentiated connectivity to be enabled by 5G to justify paying a premium. These smartphone users are willing to pay an average premium of 9 percent for a 5G plan that ensures elevated network performance. Our survey showed that rest of the smartphone users prefer other pricing models. 41 percent of users need more data allowances on 5G plans to justify a price increase, 17 percent desire bundles with innovative apps/services, while 20 percent expect 5G plans tiered by guaranteed speeds.

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How to unlock 5G value?

Ericsson ConsumerLab reveals four priorities for Canadian service providers.

1. 5G network satisfaction drivers are evolving beyond coverage

Post 5G buildout, service providers would benefit from prioritizing network optimizations that cater to high-performing video streaming, gaming, and other popular applications to boost user satisfaction.

5G network satisfaction drivers are evolving beyond coverage
12 %
Users highly satisfied with overall 5G network performance has increased by 12 percent.

2. 5G is reshaping video streaming and AR usage

Service providers looking to increase customer engagement should offer innovative service bundles to leverage the rising demand for new video formats and AR, driven by 5G.

5G is reshaping video streaming and AR usage
28 %
5G users report a 28 percent increase in time spent on enhanced video formats

3. 5G performance at key locations influences consumer loyalty

Canadian service providers should prioritize enhancing 5G performance in key locations to boost consumer loyalty and minimize churn rates.

5G performance at key locations influences consumer loyalty
3 x
Users who face issues in two or more locations are three times more likely to churn.

4. 5G consumers are willing to pay a premium for connectivity

It would be valuable for service providers to explore differentiated 5G monetization strategies with speed tiers, content bundles, and QoS-based pricing, leveraging 5G SA capabilities and targeted segmentation.

5G consumers are willing to pay a premium for differentiated connectivity
9 %
Smartphone users are willing to pay an average premium of 9 percent for QoS-led offerings.

Explore our global research

To explore our global research, read Ericsson ConsumerLab’s report 5G value: Turning performance into loyalty. This is based on data compiled from the most extensive consumer study of 5G so far, which involved online interviews with 37,900 consumers in 28 markets from May to June 2023.

Read the full report