As the saying goes, “Plant a tree if you want to attract gold to the phoenix”, this is the driving spirit behind the 5G network construction. However, now Communication Service Providers need to know exactly where new users come from and which 5G service can most stimulate their needs.
In order to answer these questions, Nokia conducted in-depth surveys of more than 3,000 consumers in markets where 5G has been deployed in the United States, the United Kingdom, and South Korea. This market research report called “5G Report: The Value of 5G Services and CSP Opportunities” reveals consumers’ expectations for 5G and the services they most want to obtain and how to obtain them.
1. The 5G consumer market: What have we learned
(1) Consumers want 5G after they understand 5G
When consumers understand 5G enhanced mobile broadband and its functions, the demand for 5G enhanced mobile broadband (eMBB) will greatly increase. The survey found that 80% of consumers who know 5G want to use it, while only 23% of consumers who are not familiar with 5G. The next step for CSP: rather than advertise that it is faster than 4G, it is better to show consumers the features provided by 5G to drive demand.
(2) They are willing to pay higher prices for 5G
More than half of the respondents said they are willing to pay a higher price for 5G. However, Focus Group participants said they will carefully consider fees and other providers’ offers. This shows that cost will be a consideration of adoption, not an obstacle, and if consumers understand the differences in 5G, they will be willing to pay more. The next step for CSPs is to provide more attractive discounts than faster connections to win the right to charge higher prices.
(3) Active users will switch providers to get 5G
50% of respondents said that if their own service providers do not provide 5G services in the next 12 months, they may switch providers to obtain 5G services. Those users who are most likely to switch-teleworkers, video streamers, home monitors, etc.- who are highly engaged users and will take full advantage of 5G capabilities. What CSP needs to do: launch 5G early, find interested users, and induce them to switch to high-value products that fit their current 4G usage.
(4) Opportunities for CSP to expand beyond connectivity abound
The survey shows that from fixed wireless access to home monitoring and real-time drone video, to cloud games, AR-based translation, precise navigation and many other fields, people have great demand for 5G enhanced services. The next step CSP needs: explore the potential of high-value 5G services and establish partnerships to maximize market reach.
2. The most popular consumer 5G use cases
(1) Fixed Wireless Access (FWA)
Consumers regard 5G FWA as a viable alternative to wired broadband. Respondents showed great interest in FWA in the family, and 76% thought it was attractive-even higher than eMBB. These findings confirm that FWA is considered a near-term opportunity for CSP. CSPs need to use case studies and social evidence to convince potential users that FWA can be better, faster, and more reliable than wired broadband. For example, exploring new pricing models and establishing partnerships to expand the scope of adoption.
(2) Video
Video applications are already popular, and consumers are ready to understand how 5G can further enhance them. Consumers find that video is the most attractive 5G support service after FWA. 66% of them think video capture and streaming services are attractive, while 69% think that video detection and alerting is very attractive. The key to CSP’s success will be to target consumers through the 5G video service that attracts them the most.
(3) Immersive experience
AR has the widest appeal, and many highly engaged users find 5G-driven VR and cloud games attractive. The survey found that although more than two-thirds of the respondents are familiar with VR, less than 20% currently own VR headsets. In contrast, less than half of consumers are familiar with the term AR, but 63% of users have tried some kind of AR application.
(4) Smart venue
Providing better connectivity and service reliability in crowded places is the most acceptable and highly attractive selling point of 5G. Nearly two-thirds (65%) of the respondents think the idea of enhancing 5G venues is very attractive-whether it’s stadium games, concerts, music festivals, theme parks, museums or other places where many people gather.
(5) Connected car
Most car owners are interested in enhancing car connectivity, especially for road safety and enhanced navigation. 73% of car owners find the idea of vehicle connectivity is attractive, which makes connected vehicles an interesting use case for CSP, especially in a market with more vehicle owners.
3. The 5G consumer market: conclusions and recommendations
By 2025, one-fifth of the world’s population will have access to 5G. Consumers already know that it will bring them faster speeds and better connectivity. However, based on the foundation, our research shows that the demand for a series of 5G-enabled services is waiting to be released.
