According to a report by Ericsson ConsumerLab, generative artificial intelligence (GenAI) applications are emerging as a key area driving expectations on 5G performance and in turn interest in differentiated connectivity – guaranteed uninterrupted responsive connectivity when you need it most – among 5G smartphone users in India.

Differentiated connectivity and consumers’ willingness to pay communications service providers (CSPs) for the guaranteed higher performance for essential apps, is the subject of the latest global report from Ericsson ConsumerLab, called ‘Elevating 5G with Differentiated Connectivity’.

With the number of smartphone owners who use GenAI apps expected to increase in the next five years, the rapidly growing category joins existing use cases such as video calling, streaming and online payments that smartphone users say they are willing to pay a premium for guaranteed performance. 67 per cent of 5G smartphone users in India are expected to use GenAI apps weekly within the next five years.

The findings highlighted a rising demand for reliable connectivity in India, with share of users reporting high satisfaction with 5G connectivity doubling in tier 3 cities compared to last year, reflecting growing digital inclusivity.

The report highlighted that 5G deployment in India is likely to shift focus from availability to enhancing experience at key locations such as stadiums, public transportation hubs, airports and commuting routes. One in six 5G users are willing to pay 20 per cent of their current monthly mobile spend for assured connectivity at event venues.

The report also highlights that AI features are becoming a top priority for Indian smartphone buyers, outranking traditional factors like camera quality, screen size and storage capacity. India also has twice as many engaged early adopters of AI on smartphones compared to global averages. This shift underscores the growing importance of AI capabilities in shaping the smartphone experience, driving demand for higher performance from both devices and networks.

Commenting on the report, Jasmeet Sethi, head, ConsumerLab, Ericsson, said, “The latest comprehensive Ericsson ConsumerLab research indicates that as AI-powered applications become more prevalent, users’ expectations for enhanced 5G connectivity are rising. Young GenAI users are already expressing a strong demand for more responsive AI experiences on 5G networks. This signals an opportunity for CSPs to meet this demand through tailored connectivity experiences.”

CSPs can expose quality on demand (QoD) network application programming interfaces to developers and can thereby tap into the consumer demand for high performance apps. They can thus enable developers to offer premium, high-performance experiences and unlock new revenue streams in the process.”

Key research takeaways:

  • Willingness to pay: One in six 5G users willing to pay 20 per cent of current monthly mobile spend for assured connectivity at event venues. Hence, 5G networks would need to adapt instantly to the rapidly shifting traffic patterns during events to keep up with this consumer demand.
  • GenAI app performance: 21 per cent of Indian GenAI users today use more than 4 different GenAI apps on smartphone, compared to just 8 per cent in US.
  • A third of Indian smartphone users consider AI-powered features more important than camera quality for their next 5G phone.
  • Accelerated consumer uptake of GenAI will cause a steady increase of mobile traffic in addition to the baseline increase. GenAI consumer uptake could see a strong growth – possibly aligned with the launch of augmented reality (AR) glasses in the future.