A new Ericsson ConsumerLab report titled ‘’ 5G Value: Turning performance into loyalty‘’ has revealed some unique insights and consumer trends about 5G in the United Arab Emirates (UAE).
The satisfaction and user-loyalty-focused report highlights the Communications Service Providers (CSPs) business case potential for 5G as growing number of subscribers around the world including UAE 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 UAE, including 650 active 5G customers, and also represents the views of 4 million 5G users and 6 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 the UAE are themselves changing – moving primarily from 5G geographical coverage considerations to more application-experience-based metrics such as mobile gaming and video calling experience, and 5G speed consistency.
Ekow Nelson, Country General Manager of Ericsson United Arab Emirates at Ericsson Middle East and Africa, says: ‘’Based on recent Ookla speedtests, the United Arab Emirates is the home of the fastest mobile network in the world. The new Ericsson ConsumerLab report offers insights into what consumers in the UAE expect from their world-leading 5G infrastructure and what drives user satisfaction and loyalty. We will be working with our customers to translate findings from this report into compelling propositions to deliver better experiences and enable the UAE retain leadership in global communication”.
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 the United Arab Emirates:
5G network satisfaction drivers are evolving to application experience. The number of users highly satisfied with overall 5G network performance has increased by 13 percent year-on-year in UAE. 57 percent of users are very happy with their 5G network performance, which is among the highest shares globally.
5G is reshaping video streaming and AR usage. The advent of 5G is significantly impacting video streaming and augmented reality (AR) usage. Users with innovative service bundles spent almost 60 percent of their total video streaming time on enhanced video content or AR, while those without such bundles spent almost half of their time on immersive content.
5G performance at key locations influences consumer loyalty. Consumer loyalty in 5G is heavily influenced by network performance at key locations. In the UAE, 19 percent of 5G users have switched service providers since the launch of 5G. Almost 60 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, 5G indoor coverage, and outdoor coverage in the home area.
5G consumers are willing to pay premiums for differentiated connectivity. 5G consumers are willing to pay premiums for an enhanced connectivity experience. The report notes that 23 percent of UAE smartphone users are willing to pay an average premium of 10-12 percent for QoS-led offerings.
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.
Read the full report: 5G Value: Turning performance into loyalty