The new 5G Pacesetters report from Ericsson ConsumerLab has found that the frontrunning communications service providers (CSPs) currently driving the global demand for consumer 5G are three times more likely to retain customers and almost twice as likely to grow average revenue per user and mobile services revenues compared to other CSPs.
The report, called 5G Pacesetters: winning in the eyes of consumers and growing revenues, is the industry’s first consumer 5G market analysis to combine consumer satisfaction data with market facts, assessing the 5G maturity and market revenue strategies of 73 CSPs across 22 markets globally, based on 105 criteria.
Four stages of 5G maturity are identified in the report: 5G Explorers – those at the start of their 5G journey; 5G Potentials - CSPs with satisfied consumers due to better performing 4G networks but have not invested much on evolving 5G network and offerings; 5G Aspirationals - CSPs perceived as market challengers aiming high with 5G while striving to improve consumer satisfaction; 5G Pacesetters - who are more advanced in setting the pace on delivering best in class 5G coverage, performance, and innovation but still have room to improve even further.
“5G-enabled consumer services can unlock up to USD 3.7 trillion in cumulative revenue opportunities for communications service providers (CSPs) by 2030. This report outlines that 5G pacesetters who can demonstrate an ability to adopt new technologies, influence consumer perception and are prepared to invest and focus on 5G service innovation, are already stepping ahead of competitors in the race to new revenue opportunities. By exploring new 5G-enabed opportunities, more CSPs can become 5G pacesetters and grow their revenues at the same rate,” said Jasmeet Singh Sethi, Head of ConsumerLab, Ericsson Research.
5G Pacesetters - the one-in-five of the studied CSPs widely perceived by consumers to be the market leaders within the 5G consumer segment are not necessarily market share leaders or incumbents in their local markets. They are characterised by best net promotor score in their markets as well driving innovation by already offering on an average of three consumer 5G services such as cloud gaming, immersive video (AR/VR) and 5G fixed wireless access. While advanced 5G markets in North East Asia and North America account for the largest share of CSPs in the 5G Pacesetter category, one third are in Europe.
Key 5G pacesetter insights from the report are 50 percent of 5G Pacesetter category CSPs increased ARPU by one percent or more year-on-year compared to a quarter of all other CSPs. 75 percent of the 5G Pacesetter monetise 5G based on tiers of speed, quality of service, fixed-mobile convergence or bundled content. In the 5G Pacesetter category CSPs have an average 5G population coverage of 75 percent, download speeds of 270 Mbps, and average 5G availability of 14 percent or above. Additionally, on average, 70 percent of pacesetter’s subscribers consider them to be a 5G market leader and almost 50 percent of 5G Pacesetter category CSPs have already launched 5G fixed wireless access. Finally, 5G Pacesetter category CSPs are the most proactive in implementing 5G standalone and multi-access edge computing capabilities.
How CSPs can improve as 5G pacesetters
Based on market-leading strategic insights, the report suggests different paths which CSPs can take to emerge as, or improve their position as, 5G pacesetters. These include build extensive coverage and communicate milestones, improve marketing of 5G to gain perception leadership, extend coverage indoors and improve speed, explore 5G convergent offerings and provide home broadband on 5G. Other noteworthy suggestions are to innovate with tariff plans by upselling to higher value 5G tiers, offer new immersive services and experiences for consumers and to nurture ecosystem partnerships and programs for the smartphone and beyond.
“A commitment towards technology leadership and network quality is key to unlock CSP 5G revenue growth by enhancing the core consumer business while at the same time exploring new business opportunities. Not surprisingly, 5G Pacesetters seek new ways of challenging industry conventions to make 5G connectivity more relevant to people, business and society,” said Erik Ekudden, CTO, Ericsson.