According to a report by Ericsson Consumer Lab, 5G pacesetters are three times more likely to retain customers and almost twice as likely to grow average revenue per user (ARPU) and mobile services revenues compared to other communications service provider (CSP).

The report by Ericsson Consumer Lab  assesses the 5G maturity and market revenue strategies of 73 CSPs across 22 markets globally, based on 105 criteria.

The report identifies four stages of 5G maturity. The first stage is named as 5G Explorers, having CSPs which are at the start of their 5G journey. Secondly, 5G Potentials with those CSPs, who have satisfied consumers due to better performing 4G networks but have not invested much on evolving 5G network and offerings. At third stage there are CSPs perceived as market challengers aiming high with 5G while striving to improve consumer satisfaction named as 5G Aspirationals. Last stage of 5G maturity, termed as 5G Pacesetter, includes CSPs 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 pacesetters are widely perceived by consumers to be the market leaders within the 5G consumer segment and not necessarily market share leaders or incumbents in their local markets. They are characterised by best net promotor score (NPS) 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 and VR) and 5G fixed wireless access.

Key 5G pacesetter insights:

  • 50 per cent of 5G Pacesetter category CSPs increased ARPU by one per cent or more year-on-year compared to a quarter of all other CSPs
  • 75 per cent of the 5G Pacesetter monetise 5G based on tiers of speed, quality of service, fixed-mobile convergence (FMC) or bundled content
  • 5G pacesetter category CSPs have an average 5G population coverage of 75 per cent, download speeds of 270 Mbps, and average 5G availability of 14 per cent or above.
  • On average, 70 per cent of pacesetter’s subscribers consider them to be a 5G market leader
  • Almost 50 per cent of 5G pacesetter category CSPs have already launched 5G fixed wireless access.
  • 5G pacesetter category CSPs are the most proactive in implementing 5G standalone and multi-access edge computing (MEC) capabilities.

Commenting on the report, Erik Ekudden, chief technology officer, Ericsson, said, “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.”

Meanwhile, Jasmeet Singh Sethi, head of consumer lab, Ericsson Research, said, “5G-enabled consumer services can unlock up to $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.”