TORONTO – Twenty-two per cent of Canadian 5G smartphone users are prepared to pay a premium for a 5G plan that ensures elevated network performance and improved quality of experience, particularly for apps such as video streaming, mobile gaming and video calling, according to a new study from Ericsson ConsumerLab.
The report, titled 5G Value: Turning Performance into Value, found consumer satisfaction with 5G network performance in Canada has increased 12 per cent year-over-year, attributed to there being more 5G devices in the market, faster network speeds and an increase in 5G availability, explains an Ericsson press release.
“Canadian 5G users have high expectations for their service; they’re seeking not just connectivity but rather differentiated connectivity where it matters most like crowded arenas or public indoor locations, the value-added experience that enhances daily activities,” Jasmeet Singh Sethi, head of Ericsson ConsumerLab, said in the release.
“Our findings reveal that if these expectations aren’t met, consumers are three times more inclined to switch to a provider that can deliver a superior 5G experience, with twenty-two per cent of users willing to pay nine per cent more for a service that offers differentiated quality of experience over 5G,” Sethi said.
The report also found 41 per cent of Canadian 5G smartphone users expect more data allowances on 5G plans to justify a price increase, while 17 per cent want bundles with innovative apps and services, and 20 per cent expect 5G plans tiered by guaranteed speeds before they’re willing to pay more.
“Service providers should explore differentiated 5G monetization strategies with speed tiers, content bundles, and QoS-based pricing, leveraging 5G SA capabilities and targeted segmentation,” the Ericsson press release says.
According to the study, 5G is reshaping video streaming and augmented reality (AR) usage. On average, Canadian 5G users report a 28 per cent increase in time spent streaming video in HD/4K format per day and a 59 per cent increase in time spent watching multi-view video streaming compared to 2022.
Service providers should offer innovative service bundles to leverage the rising customer demand for new video formats and AR, driven by 5G, Ericsson advises.
The Ericsson ConsumerLab study also found, since the launch of 5G in Canada, 20 per cent of consumers have switched their service provider, driven primarily by 5G network performance followed by better pricing. Among those who have made the switch, almost 46 per cent did so due to 5G network performance, according to the study, which noted 18 per cent of those 5G users reported encountering issues at airports, while 20 per cent said they faced issues at stadium and concert venues.
“Service providers should prioritize enhancing 5G performance in key locations to boost consumer loyalty and minimize churn rates,” Ericsson says.
