According to new research, released during GITEX Global 2022, by a Swedish multinational telecom company, consumers are increasingly committed to 5G as their expectations on next-generation uses cases increases.
Ericcson’s new report called 5G: The Next Wave underlines the impact 5G has had on early adopter consumers since laucnhing in various countries as well as gauging the intention of non-5G subscribers to take up the technology.
The report forecasts that at least 30 percent of smartphone users intend to take up a 5G subscription within the next year.
The report covers the behavioral changes triggered by the bundling of digital services into 5G plans by communications service providers – particularly the increased use of enhanced video and augmented reality (AR) apps.
The report also addresses the speed of mainstream 5G adoption, whether consumer demands are being met, and 5G-related changes in smartphone behavior – and their impact on network traffic.
To know more about why robust connectivity is vital to the success the digital future, click the link below. Lucky La Riccia, Vice President and Head of Digital Services, Ericsson MEA, tells ITP.net that “limitless connectivity brings limitless opportunities”.
The report identified six trends as mentioned below:
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. However, this will vary across different markets.
Ericsson’s research shows that within the next year, 30 percent of smartphone users in the 37 markets surveyed intend to sign up for 5G subscriptions. This amounts to 510 million users stating intent to upgrade to 5G in 2023. According to the Ericsson Mobility Report, by the end of 2023, we are likely to see 1.67 billion 5G subscriptions globally.
2. 5G is being adopted by a new wave of users with higher expectations
5G subscriptions have gone beyond early adopters and we are now seeing the next wave of users, who are demanding 5G works without hassle. For service providers, our research underlines the need to respond to different levels of market maturity, and to cater to the expectations of the next wave of mainstream consumers in markets where 5G penetration levels have gone beyond 15 percent of the population.
3. Perceived 5G availability is emerging as the new satisfaction benchmark
Perception of 5G availability is the proportion of time 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, 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 population covered by 5G alone; perceived availability is a far better metric.
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 5G users engaging with at least three digital services when compared to 2020.
The biggest increase over the past two years in time spent by 5G users has been on AR and enhanced video such as HD/4K multi-view video or 360-degree video.
5. 5G monetization models are expected to evolve
Around 6 in 10 consumers globally want 5G plans to move beyond just offering more gigabytes. However, most service providers are still providing the same offerings that they did for 4G.
6. 5G adoption is paving the path to the metaverse
The transition from immersive services to metaverse experiences is now underway. Our research reveals that 5G users are taking the first steps into the metaverse.
In numbers: 5G is an enabler for the metaverse
- 5G users are more engaged in early metaverse services than 4G users: 1 hour
- 5G users expect increased video usage on XR glasses: 1.5 hour
- 5G is emerging as an essential enabler for the metaverse : 6 in 10
