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NDO - According to the latest ConsumerLab report from Ericsson, generative artificial intelligence (GenAI) applications are becoming a key factor driving the growing interest of global 5G smartphone users in achieving superior, stable, and high-speed connectivity.

The number of smartphone users using the GenAI app is increasing rapidly.

Superior connectivity and users' willingness to pay telecommunications service providers (CSPs) to secure higher performance for essential applications are the focus of the latest global report from Ericsson ConsumerLab, "Enhancing 5G with Superior Connectivity," published on November 13th.

It is predicted that within the next five years, the number of smartphone users utilizing GenAI applications will increase at least 2.5 times per week. This boom will contribute to expanding existing superior connectivity use cases, such as video calling, streaming, and online payments, thereby encouraging smartphone users to be willing to pay extra for connectivity to have a better experience.

Research from the report indicates that 35% of 5G smartphone users surveyed said they were interested in paying extra for superior connectivity for essential applications.

The report focuses on revenue-generating opportunities for telecommunications service providers based on survey research findings.

Users need a high-speed connection to experience AI-powered image generation applications.

Users are willing to pay up to 35% more in subscription fees to get a faster and more secure connection.

One-quarter of GenAI users surveyed indicated they are willing to pay up to 35% more in subscription fees for a faster and more secure connection, ensuring the performance of bandwidth-intensive applications.

The report also revealed that 35% of 5G smartphone users are interested in paying extra for superior connectivity for essential applications.

The report also addresses revenue-generating opportunities for service providers based on the findings of these surveys.

Over 23,000 smartphone users aged 15 to 69 participated in the online survey for this study. Of these, more than 17,000 were 5G smartphone users from 16 major markets worldwide.

Ericsson researchers said the survey represents 1.1 billion smartphone users, including 750 million 5G subscribers.

The 5G users participating in the survey came from countries and regions such as: Australia, Brazil, Canada, mainland China, France, Hong Kong (China), India, Saudi Arabia (KSA), Singapore, South Korea, Spain, Taiwan, Thailand, UAE, United Kingdom, and the United States.

Growth opportunities for telecommunications service providers.

Jasmeet Sethi, Director of ConsumerLab at Ericsson, said: “The latest research from Ericsson ConsumerLab shows that as AI applications become more prevalent, user expectations for high-speed connectivity are also increasing. This reflects users’ expectations of the superior potential of AI applications in creating images, audio, and video, and shows that users are willing to pay for the fastest and most optimal experience. This is a great opportunity for cloud service providers (CSPs) globally to deliver superior connectivity experiences to meet this demand.”

According to Sethi, the potential for generating revenue from superior connectivity for service providers will increase as they shift to performance-based business models, offering customized subscription packages and plans, with a commitment to ensuring performance for different consumer groups in the market.

He said, "This shift could boost 5G's average revenue per user (ARPU) by 5-12%, as users need stable and reliable connections for specific applications."

"Furthermore, there are opportunities to tap into new revenue streams stemming from the growing demand from 5G users for high-performance applications. One-third of 5G smartphone users are willing to shift 10% of their current mobile app spending to applications that require high-speed connectivity," Sethi added.

Rita Mokbel, President and CEO of Ericsson Vietnam, said: “As 5G networks are fully deployed in Vietnam, CSPs will be able to provide network APIs with Quality on Demand (QoD) to developers, thereby meeting consumer demand for high-performance applications.”

"This not only allows developers to deliver premium experiences with superior performance but also opens up new revenue streams. This is a prime example of how CSPs can leverage network APIs," said Rita Mokbel.

Key conclusions from the study:

• Contrary to the notion that users will not pay extra for enhanced connectivity, surveys show that 20% of users, known as “Assurance Seekers,” are actively seeking superior connectivity solutions for critical applications and are willing to pay for them.

• It is projected that over the next five years, the number of smartphone users utilizing GenAI applications will increase 2.5 times per week. A quarter of current AI users are willing to pay an additional 35% for superior connectivity, ensuring a high-performance and responsive AI application experience.

• Regional interest: Markets like India, Thailand, and Saudi Arabia have twice the percentage of smartphone users interested in superior connectivity compared to markets like France and Spain.

• The research proposes a development roadmap for CSPs, moving from conventional mobile broadband models to performance- and platform-based models, where network APIs empower developers to create customized application experiences.

NDO - According to the latest ConsumerLab report from Ericsson, generative artificial intelligence (GenAI) applications are becoming a key factor driving the growing interest of global 5G smartphone users in achieving superior, stable, and high-speed connectivity.

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