itb-au logo
Story image

Ericsson report uncovers the consumer potential of 5G

09 May 2019

Ericsson has released a new ConsumerLab report, 5G Consumer Potential, which busts industry myths surrounding the value of 5G for consumers and outlines the opportunities available for communications service providers.

Backed by solid research from one of the biggest ever 5G consumer expectation studies, the report looks at the potential of 5G to benefit consumers, uncovering certain realities about them (“consumer realities”) to bust the following four common industry myths:

  1. 5G offers consumers no short-term benefits.
  2. There are no real use cases for 5G, nor is there a price premium on 5G.
  3. Smartphones will be the “silver bullet” for 5G: the magical single solution to delivering fifth-generation services.
  4. Current usage patterns can be used to predict future 5G demand.

Conducted globally, the research involved 35,000 interviews with smartphone users aged 15 to 69, in 22 different countries. In Australia, the report statistically represents the opinions of 13 million smartphone users. The study brings some sense of reality to the ongoing debate in the ICT industry about whether there is an opportunity for a premium consumer offering based on 5G’s extra capabilities.

The key findings of the study include the fact that consumers expect 5G to provide relief from urban network congestion in the near term – especially in Australia’s bigger cities, where nearly half (47%) smartphone users report facing network issues in crowded areas. The respondents also anticipate more home broadband choices to be available with the launch of 5G.

The report also dispels the ICT industry myth that consumers are unwilling to pay a premium on 5G. In fact, Australian smartphone users state that they are willing to pay 20 per cent more for fifth-generation services, and early adopters as much as 42 per cent more.

However, whilst 6 in 10 are willing to pay for 5G services that are relevant to them, they also expect services like 5G TV, Smart home and 5G Hot zones access to be bundled with a 5G plan. High spenders on 5G also expect new use cases that uniquely leverage 5G capabilities and a secure network.

Another key finding is that current 4G usage patterns are not indicative of future usage behaviours.

Video consumption is set to rise significantly with 5G. Australian consumers expect to not only stream video in higher resolutions but also use immersive video formats such as Augmented reality (AR) and Virtual reality (VR), resulting in an additional two hours of video content being watched weekly on mobile devices by users in the 5G future when they are out and about, including half an hour wearing AR glasses or VR headsets.

The study also reveals that data usage for one in five users could reach more than 160GB per month on a 5G device by 2025.

From these insights and more, Ericsson ConsumerLab has drawn up a consumer roadmap of use cases involving 31 different applications and services. The roadmap is divided into six use-case categories, namely: entertainment and media; enhanced mobile broadband; gaming and AR/VR applications; smart home and fixed wireless access; automotive and transportation; and shopping and immersive communications.

Story image
Why Southeast Asia is at the forefront of a new wave of sustainable data centers
The APAC region is set to be the biggest market for data centers by 2021, with a total market size to be around US$28 billion by 2024 for colocation data centres, according to a new joint report from Digital Realty and Eco-Business. Southeast Asia is a key player in the region, representing around 13% of the region’s total market size.More
Story image
How to keep office equipment safe in the COVID-19 era
In addition to basic hygiene procedures like mandating the use of hand sanitiser and encouraging the use of masks, organisations can minimise the risk of cross-contamination and infection when employees are using shared devices.More
Story image
In the sprint towards digital transformation, don’t neglect your data
Three tips to locate, secure, and understand dispersed corporate data.More
Story image
Digital Realty's Window to Australia event celebrates Sydney's rise as epicentre for data centres
As the city accounting for 65% of Australia’s financial services activity, Sydney will inevitably be at the centre of the new data centre wave.More
Story image
The ins and outs of cloud-native computing
For businesses and other organisations that want to get the most out of their approach to the cloud, cloud-native computing may provide the answer, writes Gigamon country manager for A/NZ George Tsoukas.More
Link image
The definitive checklist to distinguish a broken authentication system
An improper or insecure implementation of authentication is a critical web application security risk. This checklist will discern the good from the bad.More