A
new Ericsson ConsumerLab report titled "5G Value: Turning Performance into Loyalty" has
revealed some unique insights and consumer trends about 5G in South Africa.
The
satisfaction and user-loyalty-focused report highlights the Communications
Service Providers (CSPs) business case potential for 5G as a growing number of
subscribers around the world including South Africa express increased
satisfaction with 5G.
It
also reveals that unsatisfactory 5G connectivity experiences at key locations
such as stadiums, entertainment arenas and airports can make customers globally
up to three times more likely to switch communications service providers.
The
comprehensive research reflects the views of 1,220 consumers surveyed in South
Africa, including over 370 active 5G customers, and also represents the views
of 4 million 5G users and 26 million consumers in the country. This is part of
the comprehensive Ericsson research series, which has tracked the evolution of
the 5G consumer market since 2019.
The
research also shows that the factors influencing consumer satisfaction in South
Africa are related to traditional metrics such as mobile data upload and
download speeds, but also evolving to more application-experience-based metrics
such as video streaming quality, video calling experience, and 5G
coverage at indoor locations.
Hossam
Kandeel, Vice President, Head of Global Customer Unit MTN and Customer Unit MTN
Africa at Ericsson Market Area Middle East and Africa, says: "South
Africa is among the countries experiencing 5G growth, providing remarkable
prospects for communication service providers to leverage and monetize. As
highlighted in the report, there is a growing user satisfaction with network
performance and an impressive impact of the 5G network on video streaming and
augmented reality usage. What is particularly intriguing is how 5G network
performance shapes consumer loyalty, making superior service a key factor for
customer retention. Our commitment to collaborating with partners to unlock the
full potential of 5G remains unwavering as we strive to connect lives, empower
businesses, and advance the sustainable future of South Africa and the
continent."
Other findings
The
report addresses how a surge in 5G user engagement, and consequently mobile
data consumption, is driven by the bundling of 5G rich enhanced video - such as
4K, 360-degree experiences, multi-view videos and augmented reality (AR)
applications - on 5G plans.
On
average, 5G users globally report a 47 percent increase in time spent on
enhanced video formats over the past two years. The number of daily augmented
reality (AR) application users has doubled since the end of 2020.
The
report identifies four key trends in South Africa:
5G
is reshaping video streaming and AR usage. The advent of 5G is
significantly impacting video streaming and augmented reality (AR) usage. The
surge in user engagement is driven by the enhanced capabilities of video and AR
applications.
5G
progress is elevating consumer satisfaction. 5G has stepped in to elevate
user satisfaction, elevating overall satisfaction by a remarkable 32 percent
compared to 4G. 5G satisfaction is also increasing year or year by 13 percent,
with 48 percent of 5G users being very satisfied with their 5G experience.
5G
performance at key locations influences consumer loyalty.
Consumer loyalty in 5G is heavily influenced by network performance at key
locations. In South Africa, 17 percent of 5G users have switched service
providers since the launch of 5G. 50 percent of those who changed operators did
so primarily due to the 5G network's performance. The main performance related
reasons for switching included network speed and stability of mobile data
connectivity.
5G
consumers are willing to pay premiums for differentiated connectivity. 5G
consumers are willing to pay premiums for an enhanced connectivity experience.
Smartphone users are willing to pay an average premium of 17 percent for app
bundles in 5G, 16 percent premium for quality of service-led offerings.
Methodology
More
than 37,000 consumers in 28 countries were interviewed during May and June
2023. The research scope is reflective of the opinions of about 1.5 billion
consumers, including 650 million 5G users.