According to a study, over 100 million people in India with 5G-ready phones are planning to upgrade to the 5G network in 2023 and many of them are willing to pay up to 45% premium.
As the countdown for 5G services availability has begun in India, the world''s second-largest smartphone market after China, the survey has indicated a lucrative monetization and "extremely good" ARPU (average revenue per user) increase potential for telcos in the country.
Regardless, 5G network performance will be a driving force for loyalty, and among those who plan to upgrade to 5G, about 36 percent of people are planning to churn to the best provider of the 5G network when it is available.
About 60 percent of early adopters who have already received a 5G-powered notebook are anticipating new innovative technologies, which are considered more attractive than enhanced coverage.
"These users are even willing to pay a 45 percent discount for a program that includes innovative experiences, if their expectations are met," said the survey.
Ericsson ConsumerLab''s report on the ''Promise of 5G'' in India was completed in the second quarter this year and reflects the views of 300 million daily smartphone users in urban India. The report highlights key insights that will drive the rise of 5G in India.
Consumer 5G readiness is high in India, according to the report.
In places such as the United Kingdom and the United States, the intention to upgrade to 5G in urban India is two times greater than its competitors.
"Over the past two years, India has witnessed a three-fold increase in smartphone users who own a 5G handset. According to a study, 100 million-plus users with 5G-ready smartphones wish to upgrade to a 5G subscription in 2023, while more than half of them are open to adopting a higher data tier strategy in the next 12 months.
During a virtual briefing, Jasmeet Sethi, the CEO of Ericsson ConsumerLab, said the switch to 5G provides an opportunity for service providers in India to strengthen their position in the consumer market, focusing on 5G quality and availability.
"More innovative experiences must be combined in order to meet expectations of early adopters to successfully monetize 5G," Sethi said.
According to Ericsson, many consumers who were interviewed expressed desire to pay an additional ten percent for 5G connectivity, but a higher premium will come in when at least three different services are included on the top of a 5G plan.
"That increased the premium by another 35 percent, leading to a total premium of around 45 percent, which is a really good way of ARPU uplift, and we don''t believe it is impossible," Sethi said, citing the worldwide average 5G premiums that tend to range between 20 and 40 percent.