Ericsson Survey Finds Confused Demand for 5G Mobile in the UK

A new survey from Ericsson, which makes 5G networking kit and services for mobile network operators, has found that the number of UK consumers intending to upgrade to 5G has decreased to 25% (down from 27% in 2019) and others remain confused about what the technology will deliver.

At present ultrafast 5G based mobile broadband networks via EE, O2, Three UK and Vodafone still have very limited availability across the country and the Government’s decision to ban Huawei has also slowed the rollout for some operators. But Ericsson’s latest ConsumerLab’s survey – ‘Five ways to a better 5G‘ – suggests that operators may also have other challenges than just network availability to overcome.

For example, the study found that 5 million UK smartphone users could take up 5G in 2021, yet 13% of consumers said they already owned a 5G phone but haven’t signed up to a 5G plan yet. But we must caveat this by saying that a lot of operators are making 5G seamless (i.e. not offering separate 4G and 5G plans), so with some operators you can benefit from it at no extra cost on your existing plan.

Summary of Consumer Survey Results (UK Specific)

“The vast majority of UK consumers seem confused about what 5G is and can offer.”

➤ Across the UK, just 3% of phone users surveyed have a 5G phone and are on a 5G plan – leaving 97% who either don’t own a 5G device or are not subscribed to a 5G plan.

➤ 13% of consumers have a 5G phone but say they haven’t signed up to a 5G plan yet.

➤ 3% of UK consumers think they are on 5G, but have a phone that’s only capable of 4G – exactly the same proportion who have a 5G phone and plan.

➤ The number of UK consumers intending to upgrade to 5G has decreased and stands at 25% (down from 27% in 2019) – this despite flagship 5G handset launches and 5G network launches in most major UK cities from operators.

➤ Ericsson analysis further highlights that just 11% of UK consumers would realistically upgrade to 5G in 2021.

➤ This is attributed to consumer perception of lack of 5G coverage and availability, financial uncertainty due to the pandemic, 5G misinformation campaigns and lack of compelling digital services enhanced by 5G.

➤ Operators are struggling to make the breakthrough needed to convince users to switch – 70% of global consumers expect availability of innovative services and applications making use of 5G, however two-thirds of use cases highly valued by consumers have not yet been commercialized.

➤ But those that convince users to adopt 5G could benefit – in the UK, Net Promoter Score, a measure of brand loyalty for service providers was 24 among those using 5G, compared to just 1 among those using 4G.

➤ Additionally, UK consumers value 5G plans bundled with digital services and are willing to pay a further 7% more over and above the 10% premium they are willing to pay for 5G connectivity.

➤ One in five UK consumers has decreased Wi-Fi use on their handset as a result of their 5G connection, strengthening their reliance on their operator.

➤ Good 5G indoor coverage, at home and in public places like stores, is relatively more important than faster speeds and even better battery life in driving overall consumer satisfaction – highlighting the need for further deployment of spectrum and stronger indoor coverage.

➤ In the UK, 5G early adopters spend 3 hours more per week on AR apps and cloud gaming on their phone compared to a 4G user

➤ With more time being spent on bandwidth-intensive apps, 5G early adopters in our survey saw a monthly data usage increase of 2.5 times compared to 4G users