Report: Consumer 5G readiness high in India
October 3, 2022
Comms technologist Ericsson has released a report on the ‘Promise of 5G’ in India carried out by Ericsson ConsumerLab. The study carried out in the second quarter of 2022 reflects the views of 300 million daily smartphone users in urban India. The report highlights five key insights that will drive the uptake of 5G in India.
According to the study, consumer 5G readiness is high in India. Intention to upgrade to 5G in urban India is two times higher than their counterparts in markets such as the UK and US where 5G has already been launched. Over the past two years, India has witnessed three times increase in smartphone users who own a 5G handset. The study reveals that 100 million+ users with 5G- ready smartphones wish to upgrade to a 5G subscription in 2023 while more than half of them are open to upgrading to a higher data tier plan in the next 12 months.
5G network superiority could emerge as a driver for consumer loyalty with 59 per cent of smartphone users intending to upgrade to 5G in the first 12 months. Within those who plan to upgrade to 5G, 36 per cent plan to churn to the best provider of 5G network when it is available. Sixty per cent of early adopters who already have a 5G-capable phone expect 5G to bring new innovative applications, which are considered more appealing than better coverage. These users are even willing to pay a 45 per cent premium for plan bundled with novel experiences provided their expectations are met.
According to Ericsson, 5G will improve network satisfaction in India, especially for gaming experience. Seven in 10 of current smartphone users are looking forward to enhanced video streaming quality once they switch to 5G. 5G-ready users are already engaging in using more digital services compared to 4G users – 60 per cent of 5G-ready users are already today engaging with more than three digital services. 5G will trigger an increase in consumption of new format high-resolution video streaming and cloud gaming.
The study tested 27 different 5G enhanced services with Indian consumers to reveal the top 10 services that Indian consumers wish for on their 5G plans. These include: Health and Fitness; 360-degree live video streaming; cloud gaming; 5G TV Package; Virtual meeting space; immersive education; best-seat event experience; interactive calling; location-based AR shopping and VR Shopping.
“The transition to 5G provides an opportunity for service providers in India to strengthen their position in the consumer market, with focus on 5G quality and availability,” noted Jasmeet Sethi, Head of Ericsson ConsumerLab. “More innovative experiences need to be bundled to meet the expectations of early adopters to successfully monetise 5G.”
“Even as 5G will provide immersive experiences to urban customers, it will also play an important role in achieving India’s digital inclusion goals, especially in bringing broadband to rural and remote homes,” added Nitin Bansal, Head of Ericsson India and Head of Network Solutions, South- east Asia, Oceania and India, Ericsson. “Our new generation 5G and multi-band radios that will be deployed across networks will allow for the best user experience while the improved energy efficiency will reduce the cost of operations and impact on the environment, thereby ensuring sustainable and responsible 5G rollout.”