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    Consumers Willing to Pay 20% More for Guaranteed 5G Performance at Live Events: Ericsson

    Ericsson recently hosted a press conference to unveil its latest Mobility Report, presenting insights into global and India-specific 5G adoption and consumer experiences. The event also featured findings from Ericsson ConsumerLab’s recent study, providing a comprehensive view of the future of 5G connectivity and its transformative potential.

    Also read: Ericsson Imagine Live Showcases Differentiated Connectivity Use Cases that Capture Value of 5G

    Jasmeet Sethi, Global Head of ConsumerLab, led the presentation with a deep dive into the data collected from an extensive survey representing approximately 180 million Indian 5G users. He highlighted that India’s 5G consumer satisfaction surpasses that of 16 other global markets surveyed, with notable increases in satisfaction seen in tier-three cities and smaller towns.

    “We analyzed consumer satisfaction with 5G across various types of cities in India, and the results are clear. The biggest surge in satisfaction comes from smaller towns and tier-three cities, where consumers are reporting high levels of contentment with 5G services. Interestingly, consumer satisfaction with 5G in India is significantly higher compared to the 16 other markets included in our global survey. This highlights that when 5G is available and coverage is reliable, Indian consumers are receiving the speeds they expect and are pleased with the experience,” said Sethi.

    Key Findings from the Ericsson Mobility Report

    Ericsson report

    Some of the initial findings of the report are as follows:

    1. Rising 5G Consumer Satisfaction: Indian users are embracing 5G, particularly in smaller towns, with satisfaction levels higher than those in many advanced markets. This satisfaction stems from better coverage and speed performance.
    2. Fixed Wireless Access Growth: India now has around six million 5G fixed wireless access users. Performance metrics for these users are on par with fiber broadband in terms of reliability and flexibility.
    3. Shifting Focus to Experience: Sethi emphasized a critical inflection point in India’s 5G journey. Operators are transitioning from focusing solely on coverage and speed to enhancing user experiences in crowded environments such as stadiums, malls, and transportation hubs.

    Emerging Use Cases and Consumer Expectations

    Sethi added that Ericsson believes that India is moving into a different phase of 5G, which they termed, as the second phase of 5G. “When we consider the second phase of 5G, the focus shifts from coverage and speeds to practical use cases—situations that drive the need for higher capacity and an enhanced user experience. It’s about ensuring seamless connectivity in scenarios like a stadium or concert venue, where 60,000 to 70,000 people are simultaneously trying to access 5G services,” he stated.

    Ericsson

    The report introduced the concept of differentiated connectivity, addressing the need for tailored network experiences. “Consumers are willing to pay up to 20% more for guaranteed 5G performance at events like concerts or sports matches,” said Sethi. He cited international examples, such as data traffic spikes during Taylor Swift’s European concerts and major sporting events, as scenarios where operators successfully optimized 5G networks for peak demand.

    “This year, Taylor Swift’s Eras Tour across Europe put unprecedented pressure on telecom operators to enhance 5G performance. At every concert, the sheer volume of data traffic generated by attendees far exceeded levels seen during major sporting events like the NFL or baseball games in the U.S. Swifties essentially “broke the internet,” with these events highlighting the critical need for 5G standalone networks,” he added.

    Sethi further commented that the summer, three significant events, Taylor Swift’s concerts, the Paris Olympics, and the UEFA Euro Championships, provided insights into network challenges and consumer usage patterns. “At Swift’s concerts, data traffic surged in predictable phases. At the start, uplink traffic spiked as fans live-streamed on platforms like Instagram and Facebook. During key moments, such as guest appearances or favorite songs, uplink traffic peaked again. Meanwhile, during breaks or as attendees left the venue, downlink traffic rose as fans streamed videos or caught up on other events. These patterns demonstrated the unique demands of live events on 5G networks, showcasing why robust infrastructure is essential to support such experiences,” he stated.

    Sethi also spoke about India’s growing live entertainment sector, with events like Diljit Dosanjh concerts and upcoming Coldplay performances posing unique challenges for network operators. He noted the critical importance of ensuring flawless uplink performance for live streaming and video calls in such settings.

    “Our networks were designed primarily for downlink, not uplink, creating a significant challenge in meeting 5G performance expectations. In fact, 64% of Indian consumers attending concerts and large events expect issues with connectivity, even with 5G. These consumers are now seeking guaranteed performance. Many are even willing to pay extra for it, and some suggest spending 20% more on top of their existing costs. For example, after paying Rs 30,000 for a Coldplay concert ticket, they wouldn’t mind spending an additional Rs 30 for reliable connectivity. This highlights a clear opportunity to explore differentiated connectivity models, where consumers can pay for premium, guaranteed network performance tailored to such high-demand scenarios,” said Sethi.

    The Future of 5G in India

    Ericsson

    The Ericsson report also highlighted that Indian consumers were also willing to pay more for categories like Gen-AI and content creation. “We are not focusing on creating tailored experiences for users who are willing to pay for them, which is a missed opportunity. This insight is particularly relevant for a growing category like Generative AI (Gen-AI). Though currently niche, Gen-AI is poised to generate significant traffic on networks and drive new demands for enhanced connectivity. Why is Gen-AI emerging as an important category for mobile and 5G networks? Here’s why: India leads the world in Gen-AI adoption. While the US might top the charts for ChatGPT usage, India stands out for the diversity of Gen-AI applications being utilized. This positions India as the global frontrunner in this space, reflecting its dynamic and varied use cases, which surpass those seen in other markets like the US. This growing demand underscores the need for networks to evolve and cater to these cutting-edge applications, creating both challenges and opportunities in delivering high-quality, tailored connectivity experiences,” he stated.

    Sethi concluded by advocating for the adoption of network slicing to offer differentiated services. Drawing parallels to airport security queues, he explained how personalized connectivity options, such as guaranteed uplink performance or low latency, could revolutionize user experiences. “India is poised for the second phase of 5G deployment, where it’s not just about speeds but about delivering meaningful, application-focused experiences,” he said. “The potential for operators to monetize these differentiated services is enormous, particularly as consumer willingness to pay for enhanced experiences grows.”

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