Ericsson released a report on the ‘Promise of 5G’ in India carried out by Ericsson ConsumerLab. The study carried out in the second quarter of this year 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. The intention to upgrade to 5G in urban India is two times higher than their counterparts in markets like 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% of smartphone users intending to upgrade to 5G in the first 12 months. Of those who plan to upgrade to 5G, 36 percent plan to churn to the best provider of the 5G network when it is available. 60% of early adopters with 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-percent premium for a plan bundled with novel experiences, provided their expectations are met.
5G will improve network satisfaction in India, especially for the gaming experience. 7 in 10 smartphone users are looking forward to enhanced video streaming quality once they switch to 5G. 5G-ready users are already using more digital services compared to 4G users – 60 percent of 5G-ready users are already 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 Packages; Virtual meeting space; immersive education, best-seat event experience, interactive calling, location-based AR shopping, and VR Shopping.
Jasmeet Sethi, Head of Ericsson ConsumerLab, says:” The transition to 5G provides an opportunity for service providers in India to strengthen their position in the consumer market, focusing on 5G quality and availability. More innovative experiences need to be bundled to meet the expectations of early adopters to monetize 5G successfully.”
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