Ericsson ConsumerLab Report Busts Myths Surrounding the Value of 5G for Consumers

• Consumers see a near-term benefit from 5G, as they look forward to the technology providing relief from urban network congestion, and to bring more home broadband choices
• Smartphone users say they are willing to pay a 20 percent premium for 5G services, while half of early adopters would pay as much as 32 percent more
• One in five smartphone users' data consumption could reach more than 200GB per month on a 5G device by 2025

WASHINGTON, May 7, 2019 /PRNewswire/ -- Ericsson (NASDAQ: ERIC) has released a new ConsumerLab report, 5G Consumer Potential, which busts industry myths surrounding the value of 5G for consumers and outlines the opportunities available for communications service providers.

Backed by solid research from one of the biggest ever consumer expectation studies, the report looks at the potential of 5G to benefit consumers, uncovering certain realities about them ("consumer realities") to bust the following four common industry myths:

1.       5G offers consumers no short-term benefits.

2.       There are no real use cases for 5G, nor is there a price premium on 5G.

3.       Smartphones will be the "silver bullet" for 5G: the magical single solution to delivering fifth-generation services.

4.       Current usage patterns can be used to predict future 5G demand.

The study brings some sense of reality to the ongoing debate in the ICT industry about whether there is an opportunity for a premium consumer offering based on 5G's extra capabilities.

The key findings of the study include the fact that consumers expect 5G to provide relief from urban network congestion in the near term – especially in megacities, where six in 10 smartphone users report facing network issues in crowded areas. The respondents also anticipate more home broadband choices to be available with the launch of 5G.

The report also dispels the ICT industry myth that consumers are unwilling to pay a premium on 5G. In fact, smartphone users state that they are willing to pay 20 percent more for fifth-generation services, and half of early adopters as much as 32 percent more. However, four in 10 of these high spenders expect new use cases and payment models as well as a secure 5G network in addition to a consistently high internet speed.