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Ericsson says only 100 million Indian users keen on 5G and ready to shell out up to 45% premium

Ericsson says only 100 million Indian users keen on 5G and ready to shell out up to 45% premium

Ericsson says only 100 million Indian users keen on 5G and ready to shell out up to 45% premium
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By Pihu Yadav  Sept 30, 2022 5:10:51 PM IST (Updated)

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.

On Wednesday, Ericsson released a report, ‘Promise of 5G in India', carried out by Ericsson ConsumerLab during the second quarter of this year. It reflects the views of 300 million daily smartphone users in urban India. 

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Prime Minister Narendra Modi will launch 5G services in India during the inauguration of the Indian Mobile Congress in Delhi on Saturday morning.
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 over 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 percent 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 turn to the best provider of the 5G network when it is available. Sixty percent of early adopters who already have a 5G-capable phone expect 5G to bring new innovative applications. The study also shows that users are keener on innovations than better coverage. These users are even willing to pay a 45-percent premium a for plan bundled with novel experiences provided their expectations are met.
5G is said to improve network satisfaction in India, especially for the gaming experience. Seven in 10 current smartphone users are looking forward to enhanced video streaming quality once they switch to 5G. Sixty percent of 5G-ready users are already engaging with more than three digital services. 5G has the potential to trigger an increase in consumption of new formats high-resolution video streaming and even cloud gaming.
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, with a focus on 5G quality and availability. More innovative experiences need to be bundled to meet the expectations of early adopters to successfully monetise 5G.”
Nitin Bansal, Head of Ericsson India and Head of Network Solutions, Southeast Asia, Oceania and India, says, “Even as 5G will provide immersive experiences to urban customers, it will also play an important role in achieving India’s digital inclusion goals, especially in bringing broadband to rural and remote homes. Our new generation 5G and multi-band radios that will be deployed across networks will allow for the best user experience while the improved energy efficiency will reduce the cost of operations and impact on the environment, thereby ensuring sustainable and responsible 5G rollout.”
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.
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