3 minute read
Setting the pace to drive 5G consumer business growth
In our new Ericsson ConsumerLab report—the first industry study of its kind—we looked at 73 service providers in 22 markets across the world, analyzing their market performance and consumer perception to form a 5G Maturity Index. Using the data collected, we identified four stages of 5G maturity and highlighted the six strategies they have used to get to this position.
Until now, analysts have predominantly been focused on measuring service providers’ progress with 5G in terms of coverage rollout and deployment or network speeds. However, this approach does not provide the full picture when it comes to 5G leadership. It’s also important to analyze how efforts to offer a great 5G network experience can improve consumer satisfaction and perception toward service providers and their 5G offerings, and in turn, identify who is setting the pace on 5G performance and innovation. Ericsson ConsumerLab has previously identified that 5G service providers take either a proactive or passive approach.[1]
Taking a proactive approach, for example, by exploring new pricing models or even curating new services in-house, offers the best opportunities for service providers to reverse or arrest the decline in consumer revenues. In contrast, a passive approach risks missing out on a growth opportunity of up to 2.7 percent CAGR by 2030. This study builds upon these insights by not only identifying proactive service providers but also by measuring their progress in 5G based on two aspects: consumer perception and service providers’ own efforts.
The six strategies for 5G success in consumer markets
Key findings from the study
• There are four stages of 5G maturity among service providers:
1. 5G Explorers, who have only recently started to explore the 5G market, often with limited spectrum holdings or allocations
2. 5G Potentials, who are benefitting from better 4G performance and have therefore been slow to build their 5G business foundations
3. 5G Aspirationals, who are market challengers but score lower on consumer perception of 5G market leadership
4. 5G Pacesetters, who are leading on 5G coverage and performance but have room to improve even further
• About one out of five service providers included in the study were identified as 5G Pacesetters.
• 5G Pacesetters are seen as 5G leaders by 70 percent of their own customers and are three times more likely to retain their customers while successfully driving demand for 5G due to better marketing.
• 5G Pacesetters are nearly twice as likely to grow their ARPU and mobile services revenues by at least 1 percent year-on-year compared to other service providers.
• Three-quarters of 5G Pacesetters effectively monetize 5G based on tiers of speed, quality of service, fixed-mobile convergence (FMC) or bundled content.
• 5G Pacesetters commonly follow six strategies to succeed in the 5G consumer market:
1. Achieve cost efficiency and scale with 5G
2. Deliver best smartphone experience with excellent 5G coverage and performance
3. Extend fixed mobile and convergence plans with 5G
4. Use 5G to complement and expand fixed broadband footprint
5. Reimagine pricing strategy with premium value tiers
6. Lead with innovative and immersive 5G services
Learn how a proactive approach and a focus on bundling relevant use cases and tariff innovation enable service providers to drive 5G consumer adoption and differentiation, leading to astonishing revenue gains. Download the full report at m.eric.sn/5bgP50IB2pY.
[1] “Harnessing the 5G consumer potential.” Ericsson ConsumerLab. m.eric.sn/2RAA50IB2nG
