More than 100 million users with 5G-ready smartphones in India want to upgrade to 5G networks in 2023 and many of them are willing to pay a premium of up to 45 per cent, an Ericsson study said on Wednesday.
Survey The countdown to the availability of 5G services has begun in India, the world’s second largest smartphone market after China. Ericsson’s study indicates an attractive monetization and “extremely good” ARPU (average revenue per user) growth potential for telecom companies in the country.
That said, 5G network performance will be a driver for loyalty, and of those planning to upgrade to 5G, about 36 percent plan to brainstorm the best provider when a 5G network is available. .
About 60 percent of early adopters who already have a 5G-capable phone expect new innovative applications to be considered more attractive than better coverage.
The survey revealed, “These users are willing to pay a 45 percent premium for plans bundled with new experiences, provided their expectations are met.”
The ‘Promise of 5G in India’ report was prepared by Ericsson ConsumerLab in the second quarter of this year and reflects the views of 300 million daily smartphone users in urban India. The report highlights key insights that will drive 5G forward in India.
5G adoption is expected to start with consumers and then move to enterprises. The report states that consumer 5G readiness is high in India.
Notably, the intent to upgrade to 5G in urban India is two times higher than its counterparts in markets such as the UK and US where 5G has already been launched.
“Over the past two years, India has seen a three-fold increase in smartphone users owning 5G handsets. The study shows that over 100 million users with 5G-ready smartphones are looking to upgrade to a 5G subscription in 2023, while half They are set to upgrade to a higher data tier plan in the next 12 months,” the Swedish telecom gear maker’s report said.
Jasmeet Sethi, Head, Ericsson ConsumerLab, said during a virtual briefing that the transition to 5G provides an opportunity for service providers in India to strengthen their position in the consumer market with a focus on 5G quality and availability.
“There is a need to bundle more innovative experiences to meet the expectations of early adopters in order to successfully monetize 5G,” Sethi said.
Consumers who were surveyed expressed a willingness to pay a premium of around 10 percent for 5G connectivity, but according to Ericsson, a major uptick in premium would happen when at least three different services are included in the 5G plan. Will be bundled on top.
Sethi, citing the global average 5G premium, said, “This leads to a 35 per cent increase in premiums, resulting in a total premium of around 45 per cent, which is a pretty good sort of ARPU uplift, and we don’t think that this is impossible.” Between 20-40 percent.
