Despite rising inflation and the likelihood of a global recession, 5G adoption is unlikely to slow down, with consumers’ plans to upgrade to the next-gen technology still firmly in place.
This is according to newly-released research, which shows at least 30% of smartphone users surveyed in 37 markets intend to sign up for 5G subscriptions, amounting to 510 million users stating intent to upgrade to 5G in 2023.
The latest Ericsson ConsumerLab report, titled: “5G: The Next Wave”, details the six key consumer trends driving 5G adoption.
It is based on online interviews conducted from April to July with 49 100 consumers in 37 markets, representing the online population aged between 15 and 69 within the surveyed markets.
“Thirty percent (510 million) of smartphone users express an intention to upgrade to 5G subscription,” says the report. “Intention to upgrade is likely to vary across markets based on market maturity and inflation concerns, and high-growth markets will drive the majority of sign-ups.”
Based on this, the Ericsson Mobility Report’s forecast that there will be 1.67 billion 5G subscriptions globally by the end of 2023 is likely to be met, indicates the ConsumerLab report.
“A closer look at that 30% of smartphone users who intend to sign up to a 5G subscription reveals that 13% already have a 5G smartphone, while 17% do not.
“While it may seem that the upgrade intention is lower in markets like Australia, mainland China, Japan, South Korea, Taiwan and the US, it is important to note that these markets already have 5G penetration among the population that is higher than 21%.
“This indicates that adoption is going beyond early adopters to more mainstream users who have higher expectations on seeing 5G performing flawlessly and are more value-conscious, especially in an environment where inflation is a concern.”
Jasmeet Singh Sethi, head of Ericsson ConsumerLab, adds: “The scale of the research gives us an authentic insight into consumers’ views and attitudes to 5G. The report shows the next wave of potential 5G users have different expectations from the technology compared to early adopters. Overall, consumers see engaging with 5G as an essential part of their future lifestyles.”
In addition to the anticipated 5G signs, the report notes that consumer desire for 5G remains robust, as eight in ten existing 5G users say they are unwilling to return to 4G.
5G technology adoption started making waves in 2019, with take-up particularly strong across developed markets in Asia, North America and Europe. Consumers in these territories have gone beyond early adopters to more mainstream, according to the report.
On the local front, telcos like MTN and Vodacom used the temporary spectrum granted to mobile operators as a result of the pandemic to deploy 5G services in SA’s cities.
In terms of 5G deployments, MTN is said to be leading the race in SA, according to US-based broadband testing diagnostics company Ookla.
Furthermore, the Pan-African telco announced in June that it is targeting at least 25% of the country’s population to have 5G coverage by the end of this year.
Meanwhile, data-only network Rain, which pioneered 5G connectivity in SA, recently revealed it now covers seven million households with the next-gen connectivity technology.
According to Rain, it offers wholesale services to other telcos and retail products directly to consumers across 4G and 5G.
In addition, the local market has seen original equipment makers Samsung, Huawei, Apple, Oppo and Vivo − to name a few − introduce 5G-enabled smartphones as 5G tech gathers pace.
Push to digital services
The report’s findings show 5G is accelerating usage of enhanced video and augmented reality (AR), as over the past two years, time spent on AR apps by 5G users has doubled to two hours per week.
The report states: “5G users continue to be more engaged with immersive digital services than 4G users and there are now twice as many 5G users engaging with at least three digital services when compared to 2020. The biggest increase over the past two years in time spent by 5G users has been on AR and enhanced video such as HD/4K multi-view video or 360-degree video.”
Additionally, the research shows engagement with digital services by 5G users is not only for high-bandwidth activities like streaming high-definition mobile videos, but also for more uplink-heavy services like AR gaming, watching multi-view broadcasting videos, or using other AR apps for activities such as shopping and entertainment.
It also highlights that 5G consumers with experience of using extended reality (XR) functionality are likely to be the first to embrace future devices, as they are more positive about the potential of mixed-reality glasses.
Half of 5G users who already use XR-related services weekly think AR apps will move from smartphones to XR headsets within the next two years, compared to one-third of 4G consumers who hold this view, notes the report.
Singh Sethi concludes: “It is interesting to note that 5G is emerging as an important enabler for early adopters to embrace metaverse-related services, such as socialising, playing and buying digital items in interactive 3D virtual gaming platforms.”
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