Ericsson Consumer Lab survey: 70% dissatisfied with 5G “innovative services”
The latest Ericsson Consumer Lab survey has found a 10% higher satisfaction rate with 5G compared to 4G, but also reveals that 70% are dissatisfied (see Key Findings #4. below) at the absence of innovative apps on their 5G bundle. 5G network operators should “differentiate a 5G experience from 4G and promote a sense of novelty and exclusivity.”
Key findings:
1. Consumer intent to upgrade to 5G accelerates despite the pandemic. At least 300 million smartphone users could take up 5G in 2021. By the end of 2020, 22 percent more smartphone users with 5G-ready smartphones could have adopted 5G if knowledge gaps had been addressed.
2. 5G triggers changes in usage behavior, starts to displace Wi-Fi. 5G users spend two hours more per week using cloud gaming and one hour more on augmented reality (AR) apps compared to 4G users. 20 percent say they have decreased their usage of Wi-Fi after upgrading.
3. Indoor 5G coverage is more important for consumers. 5G early adopters rate indoor 5G coverage as two times more important than speed or battery life in driving satisfaction.
4. Early adopters are pleased with 5G speeds but expect more innovation. 70% are dissatisfied with the availability of innovative services and expect new applications making use of 5G. While early adopters are pleased with 5G network speeds, they are already expressing dissatisfaction with a lack of bundled new and innovative apps and services, which they feel were promised in the marketing pitch for 5G.
5. Consumers value 5G plans bundled with digital services and are willing to pay 20–30% more. However, two-thirds of use cases highly valued by consumers have not yet been commercialized.
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The report says the biggest revenue boost will come from bundling digital services with 5G tariffs.
Here are five ways that service providers can meet consumer expectations and improve their 5G experience, now and in the future:
1. Enhance the value: address the knowledge gap to educate and better market the value of 5G.
2. Consumers expect the quality of indoor and outdoor coverage to be consistent.
3. Adapt to network requirements of new services enabled by 5G.
4. Focus on the jobs consumers want 5G to do, to envision new use cases.
5. Go beyond just showcases: accelerate the commercialization of existing and new use cases.
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The survey found that “at least 300 million consumers could upgrade to 5G in 2021.” We seriously doubt that due to the absence of new applications and services.
The report states that it will be essential to combine app developers and other ecosystem players to accelerate the commercialization of new services currently being showcased but close to commercial release.
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References:
Ericsson ConsumerLab report highlights + 40M 5G India smartphone users forecast
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The 5G “Reopening” in the U.S. this Summer:
“5G could be the ultimate ‘reopening’ theme, as consumers venture out and demand faster cellular broadband coverage and capacity versus last year’s dependence on Wi-Fi,” wrote the financial analysts at BofA Securities in a recent note to investors.
Verizon – which has been building super-fast 5G in football stadiums, airports and other high-traffic venues that remained mostly vacant during 2020 – agreed.
“We’ve been waiting” for this moment, explained Verizon’s Ronan Dunne in comments this week at the Bernstein Strategic Decisions Conference.
He said the company’s new offer of free 5G phones was contingent on three events: a rise in traffic on Verizon’s mobile network, a return by shoppers to Verizon’s retail stores, and the availability of phones that can support the highband and midband flavors of 5G.
It’s now the “perfect timing” for this kind of a promotion, Dunne said.
The financial analysts at Cowen described Verizon’s new promotion as “aggressive,” though they said it’s not necessarily an indication that Verizon is falling behind the competition.
“In our conversation with Verizon, the company noted the offer comes from a position of strength, rather than one of desperation,” the Cowen analysts wrote. “Verizon believes it can enjoy the higher volumes without notable sacrifice to margins.”
“We’re doing better than some people might tell you,” Dunne agreed.
Of course, executives from AT&T offer a similar stance.
“We’re ready for the competitive responses,” AT&T’s Jeff McElfresh said at the same Bernstein-hosted event.
He said AT&T continues to enjoy success with its own free phone promotions, and that the operator is prepared to continue chasing “accretive, profitable growth.”
“We intend to be the nation’s premier broadband connectivity provider. Period,” he said. “We are not on our heels. We are back on our toes.”
The comments and the new promotions from Verizon, AT&T, T-Mobile and Comcast generally indicate the operators are preparing to fight for the shoppers who are keen to re-enter retail stores after a year of being stuck at home. And that they’re going to do so with some of the most aggressive promotions the wireless industry has seen in years.
https://www.lightreading.com/ossbsscx/the-summer-of-5g-may-be-scorcher/a/d-id/769955?