UAE Consumers Expect More from 5G Connectivity: Ericsson
A new report from Ericsson (NASDAQ: ERIC) reveals shifting consumer expectations around 5G connectivity in the UAE. The ConsumerLab report, titled 'Elevating 5G with Differentiated Connectivity,' outlines key trends and revenue opportunities for communication service providers (CSPs).
The survey shows that one in three 5G users in the UAE no longer accept best-effort performance. Over 50% of users face connectivity issues in crowded locations. As a result, reliable coverage and sufficient capacity are becoming essential for customer satisfaction.
Interest in premium 5G connectivity is also rising. About 44% of users are willing to pay more for better performance during critical tasks. Around 32% are likely to adopt these premium services early. Moreover, 22%—called 'assurance seekers'—actively look for elevated connectivity and are ready to pay for it.
To tap into this demand, CSPs need targeted strategies. Segmenting users based on performance needs can help providers offer value-added services.
The report also notes how Generative AI (GenAI) is changing usage behavior. About 22% of 5G users would pay 10% more for performance assurance, especially for latency- and uplink-sensitive apps like: GenAI tools and augmented reality
Video calling and interactive services
With more users adopting such apps, CSPs must prepare for increased traffic. The need for low latency and stronger uplink and downlink capacity is growing.
There are also financial gains to consider. CSPs could increase average revenue per user (ARPU) by 5% to 14% through differentiated connectivity. New revenue could also come from offering quality-on-demand (QoD) APIs to app developers. However, alternative pricing models are key, as preferred by 24% of users.
Petra Schirren, Vice President and Head of Ericsson Gulf, said, 'The latest Ericsson ConsumerLab report highlights a valuable opportunity for growth in the UAE's 5G network landscape. As AI-powered applications become more prevalent, users' expectations for enhanced connectivity are rising, and so is their willingness to pay for performance assurance.'
The report is based on an online survey of over 1,100 people, including 1,000 active 5G users. Conducted in June and July 2024, the study reflects the views of more than 6 million smartphone users in the UAE, including over 3 million using 5G. The findings are part of Ericsson's ongoing research into global 5G markets since 2019.
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