31 million users may upgrade to 5G phones in 2023: Ericsson

As many as 31 million smartphone users in the country are expected to upgrade to 5G phones in the current year, according to a report by Ericsson Consumer Lab. The study, which reflects views of 50 million 5G users and 250 million consumers across tier 1-3 cities, said about 39% are willing to pay more for 5G services if more data is allowed by the telecom operators in their respective plans.

Users cited “higher satisfaction levels” as the reason for transitioning from a 4G to 5G network. According to the report, overall satisfaction increases by a substantial 30% on switch to 5G because of higher download speeds. Also, 5G performance in important locations significantly influences user satisfaction and switching decisions.

Currently, about 13% of the consumers are satisfied with 5G, compared to the average satisfaction of users in other markets that adopted 5G early. Certain users have also expressed their willingness to pay a 14% premium for 5G, depending on the rich app bundled plans or quality of services-led offerings.

“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,” said Jasmeet Singh Sethi, head of Ericsson Consumer Lab.

The quality of service parameter is key, given that 24% of 5G consumers polled express a clear preference for differentiated Quality of service (QoS) over 5G network.

Findings of Ericsson report are crucial in sense that telecom operators have not been able to monetise their 5G services. Further, the report is also in line with arguments by Airtel and Vodafone Idea that consumers using more data should pay more. Telcos are currently offering 5G services at 4G tariffs.

Trend in usage of 5G suggests that users are highly engaging with apps, such as streaming HD (high definition) video, video calling services, mobile gaming and augmented reality. On an average, the users spend two hours more per week using these services compared to users in other early adopter 5G markets such as the US, the United Kingdom, South Korea and China.

Some of the 5G-use cases for which the users are willing to pay a premium include 3D/AR (augmented reality) books digital library, 5G creator package, 5G optimised mobile gaming, immersive replays, enhanced event experience, etc.

Event experience is crucial, as users experiencing connectivity issues at event venues are three times more likely to consider changing service providers in the next six months, the report said.

With the increased usage of 5G, Ericsson expects the fixed wireless access solutions on the millimeter wave (mmWave) band will be crucial for next leg of quality and high-speed services.

“Given the rapid 5G adoption in India, the growing data traffic and the launch of FWA (fixed wireless access) offers by service providers, we expect mmWave to be the foundation for the next wave of 5G growth the country,” said Nitin Bansal, head of Ericsson India and head of network solutions, South-east Asia, Oceania and India at Ericsson.