Twenty percent of consumers are willing to pay more for 5G if it has differentiated quality of service, according to new research from Ericsson ConsumerLab. The additional amount those consumers are willing to pay could be as high as 11%.
An even larger 37% of 5G consumers would pay more for increased data allowances in their 5G plans.
The factors influencing 5G consumer satisfaction are changing, researchers noted. Until recently, a key concern was 5G geographical coverage, but according to the researchers, consumers are increasingly concerned about application- and experience-based metrics such as video streaming quality, mobile gaming/video calling experience and 5G speed consistency.
Jasmeet Singh Sethi, head of Ericsson ConsumerLab commented on the survey results in a prepared statement. “Rather than settling for generic, best-effort 5G performance, these users are actively seeking elevated and consistent network performance.”
The ConsumerLab report was based on a survey of more than 37,000 consumers in 28 countries during May and June 2023.
Other key findings of the report, titled “5G Value: Turning Performance into Value”:
- Satisfaction drivers are evolving beyond simple coverage – While 5G users value the outdoor coverage and speed of 5G, in markets where there is more than 80% coverage, users want prioritized video and upload speeds for their apps.
- Video streaming and augmented reality (AR) are driving 5G adoption by consumers- The bundling of rich media content is pulling consumers toward 5G devices and services.
- Key location coverage is critical – Churn of 5G users from one service provider to another is often driven by coverage issues, with 17% of those surveyed stating that they had switched 5G providers because of coverage and network performance problems. Coverage and performance in airports and arenas significantly influence 5G consumer service provider selection.
A previous Ericsson ConsumerLab report found that consumers with 5G connectivity were heavier users of gaming and virtual reality in comparison with consumers without 5G connectivity.