Consumers Seek Differentiated Quality of Service over 5G

By Greg Tavarez October 16, 2023

The adoption of 5G brought in a lot of change; faster, more reliable and low-latency communication that enhanced smartphone capabilities and affected various industries, from telco to AR/VR experiences to IoT.

This change is not merely about browsing or downloading content at lightning speed, but about fundamentally altering how we interact with our devices and the world around us. It has implications for sectors ranging from healthcare to autonomous vehicles, reshaping the way we live, work and communicate.

Although largely satisfied with 5G coverage in general, consumers are changing what influences their satisfaction with 5G. They seek a service that improves video streaming quality, improves mobile gaming/video calling experience and delivers 5G speed consistently.

In fact, a substantial portion of 5G smartphone users (specifically one in five) actively seek differentiated and enhanced 5G service experiences, according to a recent study conducted by Ericsson ConsumerLab. These discerning users are specifically interested in services that prioritize the quality of service, especially when engaging in demanding applications that rely on high-performance connectivity.

For example, if a consumer is at a football game and cannot be live on their social media app due to their CSP’s (News - Alert) “inefficient” 5G service, they are three times more likely to switch to a CSP that offers “improved” service, according to the study.

What's even more noteworthy is that this study highlights the willingness of these consumers to invest in the premium quality and value-added offerings from CSPs. They are willing to pay a premium of up to 11% for these value-added 5G services, underlining the fact that consumers are ready to invest in superior connectivity experiences that go beyond the standard offerings.

According to the Ericsson (News - Alert) report, network APIs can serve as a vital tool for CSPs to deliver advanced network experiences that consumers are not only interested in but also willing to pay for. By offering developers access to these APIs, CSPs can unlock a wealth of opportunities to tailor connectivity experiences, from enhanced quality of service to novel applications in areas like AR and the Internet of Things.

In doing so, CSPs meet the evolving demands of their customers and tap into new revenue streams, creating a symbiotic relationship where developers drive network innovation and CSPs deliver the premium experiences that discerning customers seek. This then creates a win-win scenario where consumers enjoy enhanced experiences while CSPs can generate additional revenue streams through differentiated 5G service offerings.

"As we observe consumers expressing a willingness to pay for new functionality and differentiated quality of service, it's clear that these APIs are industry changing,” said Ericsson Chief Technology Officer Erik Ekudden. “They foster an environment where developers get access to 5G capabilities to deliver distinct premium experiences. For communication service providers, APIs unlock new revenues by unveiling the inherent value of their networks."

Edited by Alex Passett
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