NAB
5G use among
consumers is on the rise, almost by default, and there are opportunities for
service providers to make more of their investment.
article here
So says Deloitte in
a new report, “Deloitte Connectivity and Mobile Trends Survey,” which found
that the percentage of consumers with a 5G device rose from 56% in 2021 to 68%
in 2022.
Positively,
consumers report that they are happy with their 5G service. More than nine in
10 respondents said 5G meets or exceeds their expectations. Moreover,
one-quarter of respondents said they’re watching more streaming video thanks to
5G, and one-quarter of Gen Z respondents said they’re gaming more on their 5G
phones than in the past.
Even so,
approximately two-thirds of all respondents (those with and without 5G service)
said they want a better understanding of the new capabilities 5G offers.
“Indeed, most users
are doing what they already did with 4G, just faster and with better
performance. They do not yet see any new revolutionary applications enabled by
the technology.”
Couple this with
research that suggests two-thirds of 5G phone users would value — and pay more
for — premium bundles with “innovative 5G digital services and apps,” and you
have a market waiting to be exploited.
To this end, 45% of
service providers worldwide are using the promise of rich media and cloud
gaming to drive 5G subscriptions and device sales, and nearly 40% include an
unlimited option at the premium end of their tiered data plans.
Additionally,
because 5G provides more bandwidth and speed to more devices, service providers
can increasingly offer unlimited data plans, often with a subscription to a
premium third-party streaming service (such as video, music and gaming). These
unlimited premium bundles can help distinguish 5G from older 4G wireless plans,
the analyst says.
In its
second-quarter results, for example, Verizon reported that 57% of new accounts
selected premium unlimited plans, resulting in a 2.4% increase in ARPA.
AT&T also noted an ARPU uplift due to more customers upgrading to premium
unlimited plans.
“There is still
ample opportunity for MNOs to benefit from educating consumers on 5G’s benefits
and developing new premium bundles that leverage 5G service.
“One clear
opportunity is to bundle 5G mobile phones with 5G Fixed Wireless Access (FWA),
which may offer similar performance to cable broadband connections.”
Deloitte’s survey
revealed that only 22% of respondents obtain mobile and home internet from the
same provider. When pushed to pick the top three factors that would convince
them to bundle these services, lower combined cost, confidence in service
quality, and ease of billing and payment ranked highest.
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