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Users ready to pay 66% premium for 5G: Ericsson

Indian smartphone users are ready to pay over 66 per cent premium for 5G services, and the subscriptions for 5G are expected to be available in 2022, a report by Ericsson said.

“Based on the latest Consumer Lab study done by Ericsson, we have found that Indian smartphone users are willing to pay more than 66 per cent premium for 5G services,” Nitin Bansal, Head, Ericsson India said here on Wednesday.

According to the Ericsson Mobility report, the premium is expected to be ₹320 for early adopters — who would make up to 30 per cent of the market — and the median price premium is expected to be ₹200.

The report also projects that 4G (LTE) subscriptions will grow to 82 per cent in 2024 from 38 per cent in 2018. However, 4G still hasn’t penetrated to a large extent in India, and even as 5G is rolled out, 4G mobile subscriptions will dominate, the report said.

On the other hand, 2G will constitute only 12 per cent of the market in 2024, down from 47 per cent in 2018. This could signal increased smartphone adoption in the country going forward. India still has many users who use feature phones.

Currently, the country tops the world in the highest average data use per smartphone, with 9.8 GB of data being used per month (in 2018). The report cited attractive data plans and changing video consumption habits as the reasons behind this growth. This monthly data consumption is touted to increase to 18 GB per month in 2024.

Source: The Hindu