Tech

5G smartphone users willing to shell out up to 45% premium for upgrades: Study


More than 100 million users in India with 5G-enabled smartphones want to upgrade to 5G networks by 2023, and many of them are willing to pay a premium of up to 45%, an Ericsson study said today. Wednesday.

The survey assume importance as the countdown for 5G Service availability has begun in India, the world’s second largest country smartphone market after China. Research by Ericsson has shown lucrative monetization and “extremely good” ARPU (average revenue per user) increasing the potential for domestic telecommunications companies.

That said, 5G network performance will be a loyalty driver, and of those planning to upgrade to 5G, around 36% plan to move to the best 5G network provider when available.

About 60% of early adopters who already have a 5G-enabled phone expect new innovative applications, which are considered more attractive than better coverage.

“These users are even willing to pay a 45% premium for a package that comes with a novel experience provided their expectations are met,” the survey revealed.

The ‘Promise of 5G’ in India report by Ericsson ConsumerLab, was conducted in the second quarter of this year and reflects the views of 300 million daily smartphone users in Indian cities. The report highlights key insights that will drive 5G uptake in India.

5G adoption is expected to start with consumers and then move to businesses. The report notes that consumer readiness for 5G is very high in India.

Notably, the intention to upgrade to 5G in urban India is more than twice as high as that of their counterparts in markets like the UK and US, where 5G has already been launched.

“Over the past two years, India has seen a threefold increase in smartphone users owning 5G handsets. Research shows that more than 100 million users with 5G-enabled smartphones want to have a 5G-enabled smartphone. upgrade to a 5G subscription in 2023 while more than half of them are ready to upgrade to a higher tier data plan in the next 12 months,” the Swedish telecom equipment maker said in a report.

Jasmeet Sethi, Head of Ericsson ConsumerLab, in a virtual press conference, said the transition to 5G provides an opportunity for service providers in India to strengthen their position in the consumer market, focusing on quality and availability of 5G.

“More innovative experiences are needed to meet the expectations of early adopters to successfully monetize 5G,” Sethi said.

Many consumers surveyed said they were willing to pay a premium of around 10% for 5G connectivity, but higher increases in premium will come when at least three different services are bundled on a 5G plan, follow Ericsson.

“That increases the premium by 35% resulting in a total premium of about 45%, which is an extremely good type of increase in ARPU and we don’t think this is impossible,” Sethi said. as the average global 5G premium tends to fluctuate between 20-40 percent.


Buying an affordable 5G smartphone today usually means paying a “5G tax”. What does that mean for people who want access to 5G networks as soon as they launch? Find out about this week’s episode. Orbits are available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcast.
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