• Twenty percent of 5G smartphone users willing to pay premium to CSPs for differentiated quality of service over 5G.
• 5G consumers three times more likely to switch provider because of poor connectivity experiences at major venues such as stadiums, arenas and airports.
• Ericsson conducted a market research specifically for Thailand, where its sampling group represented 23 million consumers in the country.

One-in-five 5G smartphone users seeking differentiated 5G service experiences, such as quality of service, for demanding applications are willing to pay communications service providers (CSPs) a premium of up to 11 percent to enjoy the value-added connectivity, new research from Ericsson (NASDAQ: ERIC) ConsumerLab reveals.

The satisfaction and user-loyalty-focused report – called 5G Value: Turning Performance into Value – highlights the CSP business case potential for 5G as growing number of subscribers around the world express increased satisfaction with 5G.

It also reveals that unsatisfactory 5G connectivity experiences at key locations such as stadiums, entertainment arenas and airports can make customers up to three times more likely to switch communications service providers.

The comprehensive research – which reflects the views of an estimated 1.5 billion consumers globally, including about 650 million 5G customers – is part of an Ericsson research series which has tracked the evolution of the 5G consumer market since 2019.

Ericsson also conducted a market research specifically for Thailand, where its sampling group represented 23 million consumers in the country.

It was found that 5G network satisfaction drivers are evolving to application experience. The number of users highly satisfied with overall 5G network performance has increased by 18 percent year-on-year in Thailand.

5G is reshaping video streaming and AR usage. Thai users with innovative service bundles spent almost 60 percent of their total video streaming time on enhanced video content or AR, while those without spent 40 percent of their time on immersive content.

5G performance at key locations influences consumer loyalty. 19% users have switched providers since launch of 5G in Thailand. Among those who have switched operators, almost 60 percent have switched due to 5G network performance. If a user has connectivity issues in two or more locations, they are 1.3 times more likely to churn.

5G consumers In Thailand will pay premiums for differentiated connectivity. Smartphone users are willing to pay an average premium of 13 percent for app bundling-led offerings.

Jasmeet Singh Sethi, Head of Ericsson ConsumerLab, says about 37 percent of 5G consumers polled believe that increased data allowances in their 5G plans would justify premium rate charges from CSPs.

“Interestingly, about one-in-five 5G smartphone users polled expressed a clear preference for differentiated quality of service connectivity. Rather than settling for generic, best-effort 5G performance, these users are actively seeking elevated and consistent network performance, especially tailored for demanding applications and specific key locations. The research shows they are willing to pay an 11 percent premium if their service provider offers it.”

Methodology

More than 37,000 consumers in 28 countries were interviewed during May and June 2023. The research scope is reflective of the opinions of about 1.5 billion consumers, including 650 million 5G users.