Ericsson Study Predicts 31 Million Indian Users Will Upgrade to 5G Phones by End of Year

Ericsson, a leading global technology company, has released a groundbreaking report that sheds light on India’s imminent leap into the 5G era. It believes 31 million Indian users will upgrade to 5G phones by December.

The Ericsson Consumer Lab report, titled “5G Value: Turning performance to loyalty,” explores the dynamics driving 5G network satisfaction and user retention in the country. The study, conducted earlier this year, represents the views of 1.5 billion consumers in 28 global markets. In India, the survey covers the perspectives of 50 million 5G users and 250 million consumers in tier 1-3 cities. Globally, it includes interviews with 10,000 active 5G users, including 650 million 5G users worldwide.

The study highlighted four main issues. First, 31 million users could upgrade to 5G smartphones. Second, 5G in India improves overall network satisfaction by 30% compared to 4G. Third, 5G users in India spend more hours per week on apps on average than users from other geographies. And finally, 14% are willing to pay a premium for innovative use cases and differentiated 5G connections. Here are the details of the main findings of the study:

Interested 5G users

Based on the key results of the study, India is on the threshold of accelerated 5G adoption. What sets India’s 5G users apart is their significant commitment to digital services. These users interact heavily with applications on a daily basis, including high-definition video streaming, video calling services, mobile gaming, and augmented reality (AR).

On average, they spend more than two hours per week on these services compared to their peers in other early 5G markets such as the US, UK, South Korea, China and others. According to Ericsson’s managers, the spread of 5G technology throughout the country is a great opportunity.

Exemplary 5G satisfaction and availability

India’s 5G satisfaction level and perceived 5G availability match or exceed the levels of early adopter markets. A staggering 13% higher proportion of highly satisfied experiences can be seen when moving from 4G to 5G, with faster download speeds playing a key role in driving this increased satisfaction.

Impact of 5G performance on user decisions

The study highlights the importance of 5G performance in critical locations as an influence on user satisfaction and switching decisions. Users who experience connectivity challenges at venues are three times more likely to consider switching providers in the next six months. On the other hand, a positive 5G experience in key locations, such as when traveling or at home, can quadruple user satisfaction.

Consumer settings

Jasmeet Singh Sethi, Director, Ericsson Consumer Lab, shared key insights from the research. Some 39% of 5G consumers surveyed believe adding data caps to their 5G plans would justify Surcharges charged by communications service providers (CSPs). In addition, about 24% of the 5G consumers who responded to the survey clearly prefer differentiated quality of service (QoS) over 5G. These users are actively looking for better and consistent network performance tailored for demanding applications and specific key targets. The study also reveals that one in five smartphone users is willing to pay an average premium of 14% for a 5G application package or QoS-led offers.

Take advantage of 5G use cases

The study identified several 5G use cases that resonate with Indian consumers who are willing to pay a premium for these services. These include offerings such as 3D/AR books, digital libraries, 5G Creator packs, 5G-optimized mobile gaming, immersive replays, enhanced event experiences and more.

“The findings highlight India’s potential to be a pioneer in 5G adoption and use,” Sethi said. “Since a significant part of the population is ready for 5G, the innovation and growth potential of the Indian market is huge. With app experience being a key factor in satisfaction with 5G, the technology has boosted overall network satisfaction in India by an impressive 30% compared to 4G.