Ericsson Study: 5 G Users Willing to Pay 45% More

Ericsson Study: 5 G Users Willing to Pay 45% More

The survey gains importance now that India, the world’s second-largest smartphone market after China, has started counting down to the launch of 5G services. According to the Ericsson report, operators in the nation have significant monetization possibilities and “very good” ARPU (average revenue per user) uplift potential.

However, the performance of the 5G network will be a factor in customer loyalty, and among those who intend to upgrade to 5G, roughly 36% intend to switch to the best 5G network provider when it becomes available.

Early adopters who already own a 5G-capable phone make up about 60% of those who expect new, innovative applications, which are thought to be more appealing than enhanced coverage.

Ericsson Study: 5 G Users Willing to Pay 45% More

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According to the poll, “These users are even willing to spend a 45% premium for plan combined with innovative experiences provided their expectations are realized.”

The second quarter of this year saw the completion of the Ericsson ConsumerLab report titled “Promise of 5G” in India, which represents the opinions of 300 million urban Indians who use smartphones on a daily basis. The paper outlines important findings that will fuel the adoption of 5G in India.

Consumer adoption of 5G is anticipated to begin, followed by enterprise adoption. According to the research, India has a high level of consumer 5G readiness.

Notably, urban India has twice as many people planning to upgrade to 5G as areas like the UK and the US, where 5G has already been introduced.

“India has seen a three-fold growth in smartphone users who own a 5G device during the last two years. The survey finds that more than 100 million customers with smartphones capable of 5G want to upgrade to a 5G subscription in 2023, and more than half of them are willing to do so in the upcoming year “According to the Swedish manufacturer of telecom equipment,

During a virtual briefing, Jasmeet Sethi, Head of Ericsson ConsumerLab, stated that the shift to 5G offers service providers in India an opportunity to expand their position in the consumer market, with an emphasis on 5G quality and availability.

To successfully monetize 5G, Sethi stated that “more novel experiences need to be packed to match the expectations of early adopters.”

Many consumers who participated in the study said they would be prepared to pay an extra 10% for a 5G connection, but Ericsson predicts that the premium will increase significantly when at least three additional services are combined on top of a 5G plan.

“This increases the premium by another 35%, bringing the total premium up to roughly 45%, which is a very respectable increase in ARPU.

We also do not believe that this is impossible “Sethi cited the average global 5G premiums, which typically range between 20 and 40%.


Kimberly is a freelance writer with a love of writing and traveling. She has been writing for most of her life and has been published in various magazines and online publications. She writes about entertainment, technology, and lifestyle-related topics at Kimberly is always looking for new writing opportunities and loves learning about new cultures and experiences.

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