Canadian 5G users want the best quality of experience and are willing to pay more to get it
TORONTO, Nov. 20, 2023 /CNW/ -- A new study by Ericsson ConsumerLab reveals over one-in-five Canadian 5G smartphone users are willing to pay a premium for a 5G plan that ensures elevated network performance, particularly in areas of quality of experience and network performance, that caters to high-performing video streaming, gaming, and other popular apps to boost user satisfaction. This underlines the potential for communication service providers (CSPs) to tap into a heightened demand for differentiated connectivity.
The report, titled "5G Value: Turning Performance into Value," demonstrates the business potential for CSPs as consumer satisfaction with 5G rises, with Canada showing a 12 per cent year-over-year increase, fueled by more 5G devices in market, faster network speeds, and an increase in 5G availability.
The research reveals that the factors influencing consumer satisfaction are themselves changing - moving primarily from 5G geographical coverage considerations to more application-experience-based metrics such as video streaming quality, mobile gaming/video calling experience, and 5G speed consistency - especially among early 5G adopters.
Head of Ericsson ConsumerLab, Jasmeet Singh Sethi, says: "Canadian 5G users have high expectations for their service; they're seeking not just connectivity but rather differentiated connectivity where it matters most like crowded arenas or public indoor locations, the value-added experience that enhances daily activities," says Sethi. "Our findings reveal that if these expectations aren't met, consumers are three times more inclined to switch to a provider that can deliver a superior 5G experience, with twenty two percent of users willing to pay nine per cent more for a service that offers differentiated quality of experience over 5G."
Jeanette Irekvist, President at Ericsson Canada, says: "This report is a testament to the quality of service and experience in networks in Canada and the sophistication of Canadian 5G users, including their high expectations of reliability an quality. As 5G adoption speeds up in Canada and globally, it's important for service providers to expand the capacity and performance requirements, while improving network quality for apps, to meet these ever-growing demands."
Additional Insights for Service Providers
The Ericsson ConsumerLab report revealed four priorities for service providers:
The comprehensive global research - which reflects the views of an estimated 21 million Canadian consumers, including about 12 million 5G customers - is part of an Ericsson research series which has tracked the evolution of the 5G consumer market since 2019.
More than 37,000 consumers in 28 countries were interviewed during May and June 2023. The research scope is reflective of the opinions of about 1.5 billion consumers, including 650 million 5G users.
Read the full report: 5G Value: Turning performance into Value
70 Years of Connecting Canadians
Ericsson Canada has played a vital role in the country's innovation ecosystem for 70 years, including supporting communications service providers through every generation of mobile communication. Ericsson Canada is also a partner in the national ecosystem network aimed at fostering 5G adoption and collaboration in Canada. Ericsson Canada has R&D centres and offices in Montreal, Ottawa and Toronto and is among the leading R&D spenders in the country – averaging some $345 million per year.
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