Some Canadians Willing to Pay Extra for Better 5G Coverage: Study
A new study by Ericsson ConsumerLab highlights a significant trend among Canadian 5G smartphone users, with over 20% showing a willingness to pay extra for a 5G plan that delivers enhanced network performance. This trend is particularly noticeable in the realms of high-quality video streaming, gaming, and popular apps, suggesting a growing demand for differentiated connectivity services.
The study, titled “5G Value: Turning Performance into Value,” underscores the burgeoning business potential for communication service providers (CSPs) as consumer satisfaction with 5G in Canada surges. The report notes a 12% year-over-year increase in satisfaction, driven by the expansion of 5G devices, faster network speeds, and increased availability.
Importantly, the research indicates a shift in consumer satisfaction determinants, moving from geographic coverage to application-experience-based metrics such as video streaming quality, mobile gaming/video calling experience, and consistency of 5G speeds. This shift is especially pronounced among early 5G adopters.
“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,” said Head of Ericsson ConsumerLab, Jasmeet Singh Sethi, in a statement to iPhone in Canada.
“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 percent of users willing to pay nine per cent more for a service that offers differentiated quality of experience over 5G,” said Sethi.
The report also offers insights for service providers, emphasizing the evolving drivers of 5G network satisfaction beyond coverage, the reshaping of video streaming and augmented reality (AR) usage, the influence of 5G performance on consumer loyalty, and the willingness of consumers to pay premiums for differentiated quality of experience.
The study, reflecting the views of an estimated 21 million Canadian consumers, including about 12 million 5G users, is part of an ongoing Ericsson research series tracking the 5G consumer market since 2019.
Of course, Ericsson is a major provider of 5G network hardware to telecoms. Customers include the likes of Rogers, Telus, Bell, Eastlink, Xplornet and more. The federal government is also working with Ericsson to advance wireless technologies to the tune of nearly $500 in investments.
Conducted during May and June 2023, the research involved over 37,000 consumers across 28 countries, representing the opinions of approximately 1.5 billion consumers globally, including 650 million 5G users.