As 5G network is expanding its reach to consumers across the globe, the number of users in the UAE are highly satisfied with overall network performance of the fifth generation of cellular technology platform, according to a latest report.
A new Ericsson report disclosed that 57 per cent of users are very happy with their 5G network performance, which is among the highest share globally, reflecting a 13 per cent year-on-year increase.
The report titled — 5G Value: Turning performance into loyalty — shows fascinating insights and consumer trends surrounding 5G in the UAE. The study, which surveyed 1,220 consumers in the UAE, including 650 active 5G customers, highlights the potential business case for 5G emphasising customer satisfaction and loyalty.
The study also represents the views of four million 5G users and six million consumers in the country. This is part of the comprehensive Ericsson research series, which has tracked the evolution of the 5G consumer market since 2019.
The report addresses how a surge in 5G user engagement, and consequently mobile data consumption, is driven by the bundling of 5G rich enhanced video - such as 4K, 360-degree experiences, multi-view videos and augmented reality (AR) applications - on 5G plans.
On average, 5G users globally report a 47 percent increase in time spent on enhanced video formats over the past two years. The number of daily augmented reality (AR) application users has doubled since the end of 2020.
“The advent of 5G is significantly impacting video streaming and augmented reality (AR) usage. Users with innovative service bundles spent almost 60 per cent of their total video streaming time on enhanced video content or AR, while those without such bundles spent almost half of their time on immersive content,” according to the report.
The study also noted that 5G performance at key locations influences consumer loyalty as unsatisfactory 5G connectivity experiences at stadiums, entertainment arenas and airports can lead customers to switch service providers up to three times more often. This highlights the importance of delivering consistently excellent 5G performance in key areas.
“In the UAE, 19 per cent of 5G users have switched service providers since the launch of 5G. Almost 60 per cent of those who changed operators did so primarily due to the 5G network's performance. The main performance related reasons for switching included network speed, 5G indoor coverage, and outdoor coverage in the home area,” it says.
The research report also said 5G consumers are willing to pay premiums for an enhanced connectivity experience.
“The report notes that 23 per cent of UAE smartphone users are willing to pay an average premium of 10-12 per cent for QoS-led offerings.”
Ekow Nelson, Country General Manager of Ericsson UAE at Ericsson Middle East and Africa, said the new Ericsson ConsumerLab report offers insights into what consumers in the UAE expect from their world-leading 5G infrastructure and what drives user satisfaction and loyalty.
“Based on recent Ookla speedtests, the UAE is the home of the fastest mobile network in the world. We will be working with our customers to translate findings from this report into compelling propositions to deliver better experiences and enable the UAE retain leadership in global communication," Nelson said.
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.
Additional research by Ericsson also offers insights into India's 5G market, shedding light on how early 5G adopters in the country perceive the performance of this cutting-edge technology.
The study, has been conducted with 50 million 5G users and 250 million consumers across cities in Tiers 1-3 cities, found that approximately 31 million users are likely to upgrade to 5G phones by 2023, presenting a significant opportunity for further 5G adoption in the country. Indian 5G users are highly engaged with various mobile applications. and have equal or higher satisfaction levels compared to early adopter markets.
Jasmeet Singh Sethi, Head of Ericsson Consumer Lab, found that India has great potential to lead the way in 5G adoption and usage.
“Interestingly, about 24 per cent of 5G consumers polled express a clear preference for differentiated Quality of of service (QoS) over 5G. The research shows that one in five smartphone users are willing to pay an average premium of 14 per cent for 5G-rich app bundled plans or QoS-led offerings,” said Sethi.
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