5G: The next wave

Explore six key trends on the consumer perceptions of 5G in Canada, and what the next wave of 5G users will expect.

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What do 5G consumers want?

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Ericsson ConsumerLab has conducted the largest 5G consumer study ever, representing the views of 1.7 billion consumers globally. So what does it reveal about how the next wave of 5G is underway in Canada? We’ve analyzed the data to provide insights specific to Canada for six key 5G trends highlighted in the global study. We also give three vital insights into how Canadian communications service providers can respond to the expectations of both early adopters and the next wave of consumers, and by doing so, drive further 5G adoption. This study is based upon online interviews with 1,200 consumers in Canada held between April and July 2022, and is representative of the views of 3 million 5G users and 24 million consumers.

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Three priorities for Canadian service providers

Significant shifts have occurred since the launch of 5G in global markets several years ago. 5G subscribers now include more mainstream consumers, not just early adopters. These new 5G users are more demanding, and are driving the next wave of 5G.

What does this mean for service providers in Canada?

Ericsson ConsumerLab reveals three priorities for Canadian service providers:

Address the knowledge gap

A total of 15 percent of Canadians claim they are currently on 5G but use a 4G handset, while 18 percent own a 5G-capable device but are on a 4G subscription. In our 2021 study, Canadians revealed their lack of understanding of 5G vs 4G, and there has been no major shift in this knowledge gap in 2022.

Service providers in Canada would benefit from identifying and offering incentives for 5G service upgrades to 5G-ready smartphone owners, while also driving awareness of the advantages that 5G technology brings to consumers.

Ensure network experience

In Canada, 45 percent of 5G users continue to believe that they face coverage issues, while only a third perceive being connected to 5G more than 50 percent of the time.

It is clear that benchmarking on 5G speeds or population coverage alone does not provide a good measure of end-user experience. Service providers looking to increase customer satisfaction should inform consumers of 5G’s real-world availability as well as its performance.

Explain proof of value

Our research reveals that only 17 percent of Canadians plan to sign up to a 5G plan over the next 12 months. Of these, 13 percent need to buy a 5G phone and 4 percent already own a 5G phone.

Therefore, Canadian service providers need to work hard to demonstrate the value of 5G, by showcasing a value proposition that extends beyond increased speed and more gigabytes, and by offering differentiating experiences on rich media and apps such as gaming, enhanced video and XR.

Find out what motivates 5G Consumers in our biggest consumer study to date

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Our research has identified six key consumer trends that are driving 5G adoption.

1. Consumer 5G adoption to be inflation-resilient

Despite spiraling inflation, elevated food and energy costs, and rising interest rates during 2022, consumers globally are still planning to upgrade to 5G. In Canada, 4 million smartphone users still intend to upgrade to 5G in the next 12 months.

In numbers: Inflation-resilient 5G

5G upgrade intentions

Around 4 million Canadian smartphone users – a total of 17 percent – have expressed an intention to upgrade to 5G subscriptions in the next 12 months. Service providers may help these users realize their intentions by addressing consumer segments typically known to take up 5G first—such as early tech adopters, heavy users of mobile broadband, and people who already own 5G-ready smartphones.

Consumer desire for 5G remains robust

Despite global economic uncertainty, 5G users value reliable connectivity and 8 in 10 existing 5G users in Canada are unwilling to return to 4G.

Proof of value

Of the 1 in 5 who already have a 5G smartphone in Canada, the majority are not yet on a 5G subscription and need proof of the value 5G brings before making the upgrade. Another 15 percent of Canadians still claim they are on 5G but use a 4G handset, indicating a persistent knowledge gap.

2. 5G is being adopted by a new wave of users with higher expectations

In many markets, 5G subscriptions have gone beyond early adopters to the next wave of users, whose demands go beyond faster speeds and increased gigabyte packages. In Canada, 5G adoption is still driven by tech early adopters, and they want to see what new innovative applications and devices 5G can bring to them.

In numbers: Early adopters value new innovative applications and devices

The next wave of 5G users

When a market reaches around 15 percent penetration, 5G subscriptions start going beyond early adopters to the next wave of 5G users. Canada is coming closer to reaching the next wave, with 5G market penetration currently at 9 percent.

5G and tech early adopters

5G uptake in Canada is still driven by tech early adopters, but only 24 percent of Canadian tech early adopters are currently on 5G.

5G innovative services and early adopters

Three times as many current 5G users in Canada, compared to potential users, see innovative apps and devices as the most important reason for signing up to 5G.

3. Perceived 5G availability is emerging as the new satisfaction benchmark

Perception of 5G availability is the proportion of time that 5G users – those with both a 5G smartphone model and a 5G service plan – perceive being connected to an active 5G signal. Ensuring availability of 5G is now more important than ever in Canada, as it has become the new benchmark for user satisfaction, especially among the next wave of 5G users. Consumer satisfaction with 5G can no longer be assessed by the extent of the population covered by 5G alone; perceived availability is a far better metric.

In numbers: Perception of 5G availability is vital for satisfaction

Perceived connectivity by 5G users

While 5G population coverage in Canada is 75 percent, only 33 percent of 5G users perceive being connected to 5G more than 50 percent of the time.

Perceived 5G availability and satisfaction

Of those consumers in Canada who perceive high 5G availability, 60 percent are satisfied with their 5G service provider.

5G availability benefits

Increasing 5G availability in Canada for current users could double customer satisfaction. Perceived availability is a far better metric of consumer satisfaction than the extent of 5G population coverage.

4. 5G is pushing up usage of enhanced video and augmented reality (AR)

5G users continue to be more engaged with immersive digital services than 4G users, and there are now twice as many Canadian 5G users engaging with at least three digital services when compared to 2020. The time spent on AR apps by 5G users in Canada has doubled to 2 hours per week more than that spent by 4G users.

In numbers: 5G increases usage of enhanced video and AR

More digital services used on 5G

Twice as many 5G users in Canada are now engaging in more than three digital services (such as video streaming, online gaming, social media and cloud-based software) on a daily basis compared to 4G users.

5G users spend more time on AR apps

The amount of time spent on AR apps by 5G users in Canada has now doubled to 2 hours per week more than that of 4G users.

Bundling of 5G digital services

Bundling of digital services into 5G plans has created behavioral changes among 5G users, yet at present only 3 in 10 Canadian users have 5G-rich content and applications bundled in their plans.

5. 5G monetization models are expected to evolve

Around six in ten consumers globally want 5G plans to move beyond just offering more bandwidth, yet most service providers are still providing the same offering that they did for 4G.

In numbers: Evolution of 5G monetization models

5G rich experiences

In Canada, 85 percent of consumers consider the inclusion of innovative and rich media experiences in 5G data plans to be very important.

5G subscription offerings

There is demand for service providers to offer more than just gigabytes of bandwidth on 5G subscriptions. Consumers are also looking for network performance tailored to their needs and new experiential offerings.

5G network performance boost

A quarter of consumers surveyed said they wanted the option to boost 5G network performance on-demand to be embedded within certain apps or to be available on specific occasions.

6. 5G adoption is paving the path to the metaverse

The transition from immersive services to metaverse experiences is now underway. Our global research reveals that 5G users are taking the first steps into the metaverse, and this trend is also reflected in Canada.

In numbers: 5G is an enabler for the metaverse

5G users and the metaverse

5G users in Canada today spend an average of 2 hours more per week than 4G users on metaverse-related activities such as gaming, socializing, and shopping in virtual worlds.

5G user predictions on XR adoption

5G users in Canada believe that by 2025, 2 extra hours of video content will be consumed weekly on mobile devices, of which 1.5 hours will be on mixed-reality glasses rather than smartphones.

5G increases metaverse engagement

In Canada, 1.6 times more 5G users engage in metaverse-related activities on a weekly basis than 4G users. Globally, six in ten smartphone users believe 5G is essential for the metaverse to be realized.

Explore our global research

To explore our global research, read Ericsson ConsumerLab’s report 5G: The next wave. This is based upon data compiled in the largest 5G study of its kind, which involved online interviews with 49,100 consumers in 37 markets from April to July 2022.

Read the full report