5G Pacesetters Winning in the eyes of consumers and growing revenues
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ericsson.com/
consumerlab
5G Pacesetters
Winning in the eyes of consumers
and growing revenues
Ericsson Consumer and Market Insight report
November 2021
2 Ericsson | 5G Pacesetters
Contents
03 Key findings Methodology the opinions of 1.1 billion smartphone users
04 A consumer and market Ericsson ConsumerLab, in conjunction including 200 million 5G subscribers. The
lens on 5G with leading telecom consulting experts consumer study was carried out between
06 Winning in the eyes of consumers from Tefficient, developed an index that December 2020 and January 2021, while
08 Growing 5G consumer revenues analyzes and measures the 5G market the remaining half of the index’s results,
11 Strategies to succeed with performance and consumer perception based on publicly reported 5G market facts
5G consumer business of 73 communications service providers by service providers, include data collected
12 The paths to emerge across 22 markets. These include up until the end of May 2021.
as a 5G Pacesetter Australia, Brazil, Canada, Mainland
China, France, Finland, Germany, About Ericsson Consumer & IndustryLab
Italy, Japan, Kingdom of Saudi Arabia, Ericsson Consumer & IndustryLab explore
Philippines, Romania, Sweden, South the future of technology for consumers,
Korea, Singapore, Switzerland, Spain, enterprises, and a sustainable society.
Thailand, Taiwan, the UAE, the UK and We deliver world-class market research,
the US. This ‘5G Maturity Index’ tracked actionable insights, and design concepts
each of the service providers’ efforts in to drive innovation and sustainable
using 5G to gain a competitive advantage business development. We provide a
in consumer business and builds on both scientific fact-based analysis regarding
consumer perception data from Ericsson environmental, social, and economic
ConsumerLab consumer surveys and impacts and opportunities of ICT.
publicly reported 5G market facts. Each Our knowledge is gained from
5G service provider was analyzed based on global consumer, enterprise, and
105 criteria across 16 categories spanning sustainability research programs,
customer satisfaction data to 5G offering, including collaborations with leading
rollout and marketing efforts. customers, industry partners, universities,
This report builds on consumer and research institutions. Our research
perception insights from 2 quantitative programs cover in-depth studies and
studies, conducted by Ericsson over 100,000 interviews with consumers,
ConsumerLab, among smartphone users working people and decision-makers
in 22 markets, including those using 5G each year, in 30 countries – statistically
networks. The sample consists of 1,000 representing the views of 1.1 billion people.
to 2,000 respondents from each market,
with an age range of 15–79 (15–69 in All reports can be found at:
some markets) and is representative of ericsson.com/consumerlab
Sweden
Finland
Canada UK
Germany
France Switzerland Mainland China
Romania South Korea
Spain
US Italy Japan
UAE Taiwan
KSA
Thailand Philippines
Singapore
Brazil
Australia
3 Ericsson | 5G Pacesetters
Measuring 5G progress
and maturity
Until now, analysts have predominantly Ericsson ConsumerLab has previously in 5G based on two aspects: consumer
been focused on measuring service identified that 5G service providers take perception and service providers’ own
providers’ progress with 5G in terms of either a proactive or passive approach.1 efforts. We bring into focus the four stages
coverage rollout and deployment, or Taking a proactive approach, for example of maturity, identifying the strategies and
network speeds. However, this approach by exploring new pricing models or even paths that are taken by the most proactive
does not provide the full picture when it curating new services in-house, offers the and successful service providers,
comes to 5G leadership. It is also important best opportunities for service providers to ‘5G Pacesetters’, to uncover what sets
to analyze how efforts to offer a great reverse or arrest the decline in consumer them apart from the rest of the market,
5G network experience can improve revenues. In contrast, a passive approach and why they win in the eyes of the
consumer satisfaction and perception risks missing out on a growth opportunity consumers. With the transition to 5G,
towards service providers and their of up to 2.7 percent CAGR up to 2030. service providers have the power to
5G offerings, and in turn identify who This study builds upon these insights reverse the trend of stagnating and
is setting the pace on 5G performance by not only identifying proactive service declining consumer revenue, if they
and innovation. providers but measuring their progress take a proactive approach.
Key findings
The study identifies four 5G Pacesetters lead on consumer 5G Pacesetters are rewarded with
stages of 5G maturity among perception and satisfaction an uplift in revenues due to their
service providers. with 5G. proactive efforts.
• Their maturity level ranges from • They are seen as 5G leaders by • They are nearly twice as likely
5G Explorers just starting 70 percent of their own customers, to grow their ARPU and mobile
their journey, to 5G Potentials, while only 17 percent prefer others services revenues by at least
5G Aspirationals, and finally and the rest are unaware. 1 percent year-on-year compared
5G Pacesetters, who are leading • They are three times more likely to other service providers.
on 5G coverage, performance to retain their customers while • Three-quarters of them effectively
but have room to improve successfully driving demand for monetize 5G based on tiers
even further. 5G due to better marketing, with of speed, quality of service,
• About one out of five service 50 percent more customers looking Fixed Mobile Convergence (FMC)
providers included in the study to upgrade compared to other or bundled content.
were identified as 5G Pacesetters. service providers.
5G Pacesetters share a common commitment towards 5G network quality, technology leadership
and service innovation. They follow six strategies to succeed in the 5G consumer market:
01 02 03 04 05 06
Achieve cost Deliver best Extend fixed Use 5G to Reimagine Lead with
efficiency and smartphone mobile and complement pricing strategy innovative and
scale with 5G experience convergence and expand with premium immersive
with excellent plans with 5G fixed broadband value tiers 5G services
5G coverage and footprint
performance
1
Ericsson ConsumerLab, ‘Harnessing the 5G Consumer Potential’ (2020)
4 Ericsson | 5G Pacesetters
A consumer and
market lens on 5G
The 5G Maturity Index tracks each service The four stages of 5G maturity have by familiarizing consumers with immersive
provider’s progress in their 5G consumer therefore been defined based on each of 5G services and by improving their tariff
business by assessing 105 criteria across the 73 service providers’ total index scores plans and policies, two areas where the
16 categories. The consumer perception out of a theoretical maximum of 100. gap between consumer perception and
data forms 50 percent of the index results, The scores for the top performers, the actual service provider activity is the
while the remaining 50 percent is based 5G Pacesetters, range from 49 to 62 points, widest. In contrast, consumers have rated
on service providers’ publicly reported while the lowest scorers, the 5G Explorers, the 5G Pacesetters most favorably for their
information around 5G progress. range from 21 to 29 points. network coverage and quality – familiar
Consumers in 22 markets were asked This shows that even the highest scoring focus areas from previous generations of
to provide importance ratings for different 5G Pacesetters still have plenty of room technology rollout.
criteria, as well as satisfaction ratings for to improve consumer satisfaction ratings.
service providers in their local market. The results indicate that this can be done
Figure 1: Methodology and structure of the 5G Maturity Index
Consumer perception survey Publicly reported market fact
categories (50%) categories (50%)
1. Expected market leader in 5G 11. 5G spectrum and business outcomes
2. Network quality within 12. 5G network quality within
coverage area coverage area
3. Network coverage 13. 5G network coverage
4. Customer service quality 14. 5G devices
5. Brand visibility and quality 15. 5G innovative services
6. Devices 16. 5G innovative tariff plans, policy,
5G Maturity Index
7. Sales channel presence flexibility, extras
8. Price and affordability
9. Innovative services
10. Innovative tariff plans, policy,
flexibility, extras
The four stages of maturity identified
are 5G Pacesetters, 5G Aspirationals, 5G Pacesetters 5G Aspirational
5G Potentials and 5G Explorers. • Successful in monetizing 5G. • The Aspirationals are often
5G Explorers are often the market Consumers believe 5G Pacesetters the market challengers, following
price challengers, trailing behind other are the 5G market leaders. close behind the Pacesetters in
service providers in all areas of consumer • They outpace competition in 5G coverage, services and usage.
satisfaction and 5G investment. They 5G network coverage, speed • The Aspirationals often miss out on
have only recently started to explore the and innovative services. high consumer satisfaction and
5G market, often with limited spectrum also score lower on recommendation.
holdings or allocations.
5G Potentials are often rewarded
for price and affordability by their local
markets’ consumers. However, so far they 5G Potential 5G Explorer
have done little to innovate, particularly in • Rewarded for value for money • Often price challengers, trailing
accelerating 5G network coverage rollout by consumers. behind in all areas: consumer
or introducing new 5G services. Many of • They benefit from good consumer satisfaction and 5G investments.
the 5G Potentials are in a comfortable satisfaction but have been slow • They have only just started to
market position as they benefit from high to build their 5G foundations. explore the 5G market.
consumer satisfaction due to better 4G
performance and have therefore been slow
to build their 5G business foundations.
5 Ericsson | 5G Pacesetters
Figure 2: The four stages of 5G maturity Figure 3: Share of service providers
and stages of 5G maturity
50 5G Pacesetters
Perceived market leader in
5G, front runner in innovation
and technology
8%
5G Aspirationals
40
Aiming high with
Consumer satisfaction and perception score
5G while striving to improve
consumer satisfaction 22%
5G Potentials
30 Satisfied consumers,
unexploited 5G potential
5G Explorers 29%
Only starting to explore
5G, low consumer recognition
20
41%
10
0
0 10 20 30 40 50
Service provider’s 5G offering, rollout and efforts score
5G Aspirationals are usually the market These maturity stages also correlate
challengers, following closely behind the with the three service provider Key characteristics
5G Pacesetters in 5G coverage, services strategies identified in a previous of 5G Pacesetters
and offerings. However, they often miss Ericsson study: quality-led, offering-led • They are perceived as 5G market
out on high consumer satisfaction and and industry-led.2 Quality-led providers leaders by close to 70 percent
score lower on consumer perception focus on (and invest in) network of their own and, 40 percent of all,
of 5G market leadership and transformation, sites and spectrum, and consumers in their market.
recommendation of their brand. are typically the first to deploy the latest • They achieve an average
5G Pacesetters, in contrast, are technology. Offering-led providers are population coverage of
expected by consumers to become the usually challengers that aim to be first to 75 percent,3 download speeds
5G market leaders. They outpace their market with new products and services, of 270Mbps, and average 5G
market competitors in 5G network therefore maintaining a high level of availability (percent of time on 5G)
coverage and speed, and have invested innovation to capture market share. of 14 percent or above.
most into new immersive 5G services Industry-led providers are rarely first to • They launch an average of three
and content partnerships to drive market but have found success in being 5G services such as cloud gaming,
differentiation and eventually accelerate fast followers. They tend to focus on virtual or augmented reality
the uptake, usage and monetization of 5G. value-for-money propositions in addition (VR/AR), or enhanced video,
Interestingly, while some 20 percent to network quality. and often deliver with local or
of service providers in our study were Around 63 percent of 5G Pacesetters global partners.
identified as 5G Pacesetters, they are are quality-led, and have often been • Their 5G device portfolio is strong
not necessarily market share leaders or first to commercially rollout 5G, and extends beyond smartphones,
incumbents in their local markets. Most 5G standalone, 5G FWA and with 70 percent having introduced
are from Asia and North America, but a multi-access edge computing (MEC) wearables enabling immersive
third of them are emerging from Europe, in their local markets. They share a viewing experiences.
indicating that even a late but impactful common focus on technology leadership • 5G standalone and MEC has
5G launch could help service providers and delivering superior 5G network been commercially deployed by
secure a 5G Pacesetter positioning. It performance. 5G Aspirationals trail one-third of 5G Pacesetters,
also appears that the presence of 5G closely behind 5G Pacesetters, with compared to none of the Explorers
Pacesetters in any given market benefits 57 percent being quality-led providers, or Potentials.
all service providers. Peers will try to but a third employ an offering-led • 50 percent have commercially
accelerate their 5G efforts to catch up approach. Only 41 percent of 5G Potentials launched 5G FWA.
with them, with some successfully are quality-led, while 35 percent of them • About 75 percent already monetize
evolving their stage of maturity, resulting are industry-led. 5G Explorers are most with 5G premium tiers based on
in a higher number of 5G Pacesetters in often industry-led and are seen as price speed, content or quality of service.
that market. challengers or fast followers. • They’re seen as best-in-class
brands, with consumers scoring
them 32 percent higher on
perceived brand visibility and
quality versus others in the market.
2
Ericsson Mobility Report; ‘Service providers face three alternative paths to success’ (November 2020)
3
Excluding service providers that have not reported 5G population coverage up until end of May 2021.
6 Ericsson | 5G Pacesetters
Winning in the
eyes of consumers
The customers of 5G Pacesetters rate 5G Pacesetters are also expected to The 5G Pacesetters’ NPS, a measure
them higher than other service providers lead their local markets in 5G. A clear of loyalty and brand referability, was
in all aspects (network coverage and majority of all smartphone users in the found to be on average 4.9 points higher
quality, brand visibility, sales channel market (including 70 percent of their compared to the rest of the service
presence, innovative services, devices, own customers) expect 5G Pacesetters providers in their markets. Past studies
customer service quality and tariff plans) to dominate the 5G race. Only 17 percent from ConsumerLab have already shown
apart from price and affordability. Some of their customers think otherwise, while that a superior 5G experience could help
63 percent of customers believe their the remaining 13 percent are not aware. to lift NPS among early adopters,4 and
5G Pacesetter service provider is better In contrast, 51 percent of non-Pacesetter therefore is also a key indicator of success
than other service providers on the market customers don’t see their service provider in the 5G Maturity Index. Besides a
in network coverage, and 61 percent in as the leader in 5G. higher consumer rating on perceived
network quality. Around 80 percent of 5G Pacesetters 5G leadership, 5G Pacesetters also
Besides scoring higher than the have the top or second-best net benefit from 32 percent higher ratings
competition in most criteria, the promoter scores (NPS) in their market. on perceived brand visibility and quality.
Figure 4: 5G Pacesetters are perceived as leaders in 5G
60% Of their own subscribers,
70 percent expect the average
5G Pacesetter to lead in 5G.
5G leadership expectation — share of all smartphone users in the market
Just 17 percent think otherwise,
70
while 13 percent don’t know.
40%
%
5G Pacesetters
Over half of non-Pacesetter
5G Aspirationals 5G Potentials
customers don’t see their own
51
provider as a leader in 5G.
20%
5G Explorers
%
0%
0% 20% 40% 60% 80% 100%
5G leadership expectation — share of own subscribers
Investing in brand visibility and marketing of 5G – especially opportunities to experience new services – and communicating 5G
achievements (test scores, rollout progress, new network features and their impact on consumer experience) have a clear correlation
with perceived 5G leadership among consumers in our study.
4
Ericsson ConsumerLab, ‘Five ways to a better 5G’ (May 2021)
7 Ericsson | 5G Pacesetters
Driving consumer demand for 5G likely to retain their subscribers on 5G Pacesetters are at least
5G Pacesetters are able to drive account of a better 5G consumer three times more likely to retain
consumer demand for 5G not just by experience and offering compared their subscribers while driving
3x
improving the perception of network to other service providers. consumer demand for 5G.
availability and coverage among 5G is also shaping smartphone
consumers, but also via effective usage behavior, triggering usage of
marketing and launching innovative new apps and services like enhanced
services. 5G Pacesetters have around video, cloud gaming or AR. By virtue
50 percent more subscribers looking to of launching new immersive services,
upgrade to 5G compared to all other 5G Pacesetters have also been able
service providers, and a closer look to trigger changes in the smartphone
at the data shows that subscribers of usage patterns of their customers.
5G Pacesetters are likely to stay with their This in turn helps them drive usage, 5G Pacesetters have 50 percent more
current provider rather than making the transition consumers to premium tier subscribers looking to take up 5G
50
switch. Of the total base, only 3 percent plans and monetize 5G successfully. compared to other service providers.
of 5G Pacesetter subscribers were looking On average, 5G Pacesetters have
to change providers for 5G, whereas 50 percent more subscribers who
9 percent are planning to churn away report changes in usage of services
%
from Aspirationals, 11 percent from like HD streaming and cloud gaming
Potentials and 13 percent from Explorers. since they upgraded to 5G, compared
Thus, 5G Pacesetters are three times more to non-Pacesetters.
Figure 5: Consumer intention to take up and switch providers for 5G
Already have 5G Very likely to take up 5G and believe their current service provider is best in 5G Very likely to take up 5G but looking to switch service provider
30%
28%
21%
20% 19%
16%
13%
11%
10% 9%
8%
6%
4%
3%
2%
0%
5G Pacesetters 5G Aspirationals 5G Potentials 5G Explorers
8 Ericsson | 5G Pacesetters
Growing 5G
consumer revenues
The second part of our analysis uncovers It should be noted that not all service 5G Pacesetters are two times
how the financial performance and providers charge a price premium for 5G, more likely to grow ARPU and
business results vary by the maturity of but despite the loss of roaming revenues mobile service revenues compared
service providers when it comes to 5G. due to the pandemic, 50 percent of to other service providers.
2x
Once the maturity stages among the 5G Pacesetters grew their ARPU by
service providers were identified, an at least 1 percent between Q1 2020
analysis was done to understand the and Q1 2021. In contrast, only
development of KPIs, such as ARPU and 34 percent of Aspirationals, 24 percent
mobile services revenue, over the last year. of Potentials and just 17 percent of
As 5G launched in 2019, starting with Asia Explorers were able to witness
and the US, we’re only able to put two years a positive development in ARPU.
of performance under the lens. While it is While this is not the result of 5G alone,
challenging to assess whether 5G in and of in the case of 5G Pacesetters, the
itself drives higher ARPU, especially with ARPU uplift is largely attributable
a lack of public reporting and the differing to the service providers’ success in
ways in which service providers report migrating consumers to premium 5G
financial KPIs, there are positive trends plans. The ARPU growth of 5G Pacesetters
emerging on the horizon. in our study varies between 1.1 percent
and 12.7 percent during this period.
This is an especially encouraging sign
when it comes to reversing the trend of
ARPU decline in the industry.
Figure 6: 5G maturity stages and share of service providers with at least 1 percent growth in ARPU Q1 2020–Q1 2021
60%
Share of service providers with at least 1% growth
50%
in ARPU Q1 2020–Q1 2021
40%
30%
20%
10%
0%
5G Pacesetters 5G Aspirationals 5G Potentials 5G Explorers
9 Ericsson | 5G Pacesetters
Not only could a higher share of FMC offering for households.5 This includes of Potentials and none of the Explorers
5G Pacesetters grow their ARPU offers such as bundling 5G mobile plans monetize with these new immersive
year-on-year, but some 53 percent grew with home broadband, TV and streaming services. Past ConsumerLab studies
their mobile service revenues by 1 percent content, and landline. Furthermore, close have also highlighted the importance
or more during the same period, while to 70 percent of 5G Pacesetters offer of bundling new innovative services
20 percent saw their revenues decline by immersive video or cloud gaming either with 5G data plans, to meet consumer
at least 1 percent. During this period, some bundled into their 5G plans or for an expectations and capture their willingness
5G Pacesetters were even able to grow added fee. Meanwhile, only 14 percent to pay a 5G premium.6
mobile service revenues by 7–8 percent.
In contrast, only 30 percent of other
service provider segments saw a positive
Figure 7: ARPU and mobile service revenue growth by service provider maturity
development in mobile services revenues,
and about half experienced a decline.
Surprisingly the 5G Explorers – often 60%
the price challengers in their respective
markets – were able to quickly grow their
top line. However, although 60 percent
5G Pacesetters
of 5G Explorers grew mobile service
50%
revenues on account of market share
gains, many were not able to translate
Share of service providers with at least 1% growth in
this into ARPU growth.
A key contributor to the 5G Pacesetters’
ARPU growth is pricing innovation. 40%
ARPU Q1 2020–Q1 2021 *
5G Pacesetters are in markets that have 5G Aspirationals
adopted unlimited data volume options
as part of wider mobile broadband
subscription offerings. Despite this, 30%
5G Pacesetters are devising ways to
5G Potentials
monetize based on 5G’s new value beyond
just flat-rate unlimited offerings. Some
75 percent of them upsell consumers 20% 5G Explorers
to premium 5G price tiers based on
speed, quality of service or inclusive
content, compared to only 43 percent
of 5G Aspirationals and 10 percent of 10%
5G Potentials. None of the 5G Explorers
operate this kind of premium price tiering.
To improve consumer appeal
and retention, some 70 percent of 0%
0% 20% 40% 60% 80%
5G Pacesetters also offer multi-user
benefits in their 5G plans, and nearly Share of service providers with at least 1% growth in
60 percent provide 5G as part of their mobile service revenue Q1 2020–Q1 2021
* Blended ARPU where reported, otherwise postpaid ARPU or approximation using ABPU, ARPA or reported revenue.
5
Multi-user benefits: The higher number of mobile lines included in a plan, the higher the discount or savings on the plan.
6
‘5 Ways to a Better 5G’10 Ericsson | 5G Pacesetters Some 75 percent of 5G Pacesetters upsell consumers to premium 5G price tiers based on speed, quality of service or bundled content. 75 %
11 Ericsson | 5G Pacesetters
Strategies to succeed with
5G consumer business
The study identifies six different using 5G to boost capacity and speed, or using 5G to explore new revenue streams
strategies, or strategic options, that particularly indoors and in key locations in the broadband market using 5G FWA
successful 5G Pacesetters most often where the usage is high. The third to compete with incumbent broadband
apply to 5G. Particularly in markets with strategic option identified in our study, providers relying on DSL or cable.
higher-than-average data usage (above extending FMC with 5G, is where The fifth strategy is about reimagining
10GB per subscriber per month, such as in service providers with fiber, TV and 5G pricing strategy with premium value
China, South Korea, Taiwan and Finland), entertainment, and mobile assets tiers. In markets where tiered unlimited
5G Pacesetters and Aspirationals deploy (particularly in markets like Spain, Italy, data volume plans have become
5G coverage quickly and extensively to France and Germany) often bundle a natural part of consumer offerings,
realize a long-term, more cost-efficient 5G mobile offerings into FMC plans for service providers have been successful
production engine for mobile data, with their household customers. Relying on in upselling customers higher value
the possibility of supporting a significantly the extensive 5G mobile coverage that 5G plans or price tiers based on either
higher traffic demand now and in the complements their home broadband, these quality of service, especially speed,
future. This is the fundamental strategy service providers’ household customers or content. An alternate way of
of 5G Pacesetters. benefit from a seamless fiber-like monetizing 5G is by offering innovative
After ensuring cost-efficient operations, experience in and outside the home. 5G services, in which service providers
a cornerstone of every service provider’s Service providers have also been using start to offer new immersive 5G service
strategy is to provide consumers with 5G to complement their fixed broadband and event experiences for consumers to
the best smartphone experience by footprint in areas where fiber isn’t available, differentiate from a 4G experience.
Figure 8: Strategtic options for the 5G consumer market and related paths to growth B2B2C
Network as a platform
1. Cost 2. Best 3. Extending 4. Expanding 5. Reimagining 6. Leading with
efficiency smartphone FMC with 5G broadband pricing with innovative
and scale experience footprint premium 5G services
with 5G value tiers
• Build • Better • Explore 5G • Provide home • Innovate with • New immersive
extensive marketing convergent broadband tariff plans, services and
coverage of 5G offerings via 5G upsell 5G experiences
5G Pacesetters
• Extend coverage • Nuture
indoors, improve ecosystem
performance partnership
5G Aspirationals
5G Potentials
5G Explorers
Multi Access Edge Compute;
Beyond the smartphones
5G Pacesetters have been quicker than 5G Potentials benefit from relatively high offerings and are just starting their journey.
their competitors in successfully applying consumer satisfaction and have so far Based on these six strategies, different
most or all these strategies, depending on relied on 4G, but as 5G competition has paths have been outlined to unlock growth
market norms and local trends in offerings, intensified, they have started to build and emerge as a 5G Pacesetter. These
for example, FMC plans or value tiers. 5G coverage to rival local competitors are highlighted with a few inspiring
The same can be said for 5G Aspirationals, and to maintain cost-efficient operations. examples of service providers exploring
although they have been slower to launch Contrary to the other 5G maturity stages, these paths from across the globe,
innovative 5G services and unable to drive 5G Explorers have only launched irrespective of whether or not they
5G leadership perception. 5G with limited coverage or limited are currently 5G Pacesetters.12 Ericsson | 5G Pacesetters
The paths to emerge
as a 5G Pacesetter
Regardless of their 5G maturity level,
all service providers can take actions Based on the six strategies already 1. Achieve cost efficiency
to help them eventually emerge as a discussed, we have identified
5G Pacesetter. As we saw earlier, the different paths service providers can
and scale with 5G
Pacesetters in this study achieved a take to emerge as, or improve their
Build extensive coverage and
maximum of 62 points in our consumer position as, 5G Pacesetters.
communicate milestones
research out of a possible 100, • Build extensive coverage and
Inspiring examples of extensive 5G
demonstrating significant room for communicate milestones
coverage build-out are emerging from
improvement even among the most • Improve marketing of 5G to gain
all across the globe, including from
advanced 5G service providers. perception leadership
Swisscom in Switzerland.7 The service
5G Pacesetters are not defined in relation • Extend coverage indoors and
provider used its wide spectrum assets
to other service providers, meaning it is improve speed
and infrastructure to quickly deploy
possible for one market to have multiple, • Explore 5G convergent offerings
and promote national 5G coverage.
or even a majority, of service providers • Provide home broadband on 5G
Swisscom communicates details of its
that can be defined as such. • Innovate with tariff plans by
5G coverage for both its basic 5G and
upselling to higher value 5G tiers
faster ‘5G+’ services (NR at 3.5GHz), and
• Offer new immersive services and
population coverage for 5G was already
experiences to consumers
97 percent at the end of May 2021. As
• Nurture ecosystem partnerships
a result of its fast rollout and efficient
and programs for the smartphone
communications, Swisscom scores a
and beyond
17 percent higher consumer rating for
perceived network coverage compared
to an average global 5G Pacesetter in
this study.
T-Mobile’s 5G network build-out is
another example of accelerated rollout
to achieve network leadership. 5G is
being deployed on dedicated low-band
spectrum (600MHz) as a base layer
for coverage, with the target to cover
300 million people (90 percent of people
in the US) by the end of 2021. However,
this target was met by T-Mobile six
months ahead of schedule. The build-out
of population coverage on the mid-band
spectrum (2.5GHz) reached 140 million
in early 2021 and is planned to grow
to reach 200 million this year, with
a target of reaching 300 million people
by the end of 2023.
Another example can be seen in
Taiwan, where 5G was launched in
summer 2020, a little later than other
markets in Northeast Asia. Far EasTone
(FET) rolled out its 5G network rapidly,
and by July 2021 it had installed more
than 7,500 5G base stations, achieving
population coverage of nearly 80 percent.
Despite not having the largest bandwidth
of spectrum in Taiwan, FET has been
recognized by multiple third-party mobile
analytics organizations for its leading
5G performance with 80 MHz of its
3.5 GHz spectrum. It was named as
7
Swisscom: ’On “new” 5G antennas that have been in place for years’ (2021)13 Ericsson | 5G Pacesetters
Moveable unmanned 5G pop-up store – UNBOXED – powered by Singtel’s 5G (mid-band and mmWave)
the national 5G speed test winner in Extend coverage indoors
January 2021 and the global winner 2. Deliver the best and improve speed
in September 2021. The winning There is often a discrepancy between
streak resulted from a combination of a
smartphone experience service providers’ communicated
large-scale, fast-paced 5G deployment Improve marketing of 5G to 5G population coverage and the actual
and continuous network design and gain perception leadership share of time consumers are on 5G
optimization. FET also highlighted its Singtel has used a creative way to (5G availability). Much of this is
test wins in an advertising campaign introduce 5G to all consumers in Singapore, explained by consumers spending most
for Taiwanese consumers. providing them with the opportunity of their time indoors where 5G availability is
The strategy of building out 5G to try out 5G-powered entertainment lower today, and so coverage must extend
coverage quickly, providing the best experiences by visiting Singtel’s here next to offer a seamless experience.
quality experience, and effective marketing 5G experience zones, including its Past ConsumerLab studies suggest that
played out well as FET’s 5G customers moveable unmanned 5G pop-up store 5G indoor coverage at home and in public
are 20 percent more satisfied with their – UNBOXED.9 The store is powered by places, like malls and stores, is relatively
5G network performance and have Singtel’s 5G (mid-band and mmWave), more important than both 5G speeds and
two times more users who perceive making Singtel’s services accessible 24/7, battery life in driving overall consumer
5G availability to be good compared and enabling consumers to experience satisfaction.10 South Korea’s service
to other service providers. 5G speeds and 5G-rich digital applications providers are working towards further
Technology leadership, network such as AR books, VR entertainment, extending the 3.5 GHz 5G coverage indoors
performance and a differentiated cloud gaming and 5G-powered e-racing in 2021. The coverage of 5G services at
customer experience has been a key using miniature model cars at Sentosa. major facilities such as department stores,
strategy for Telstra. The service provider Customers can consult with a roving robot libraries and airports grew by 33 percent
has accelerated its digital transformation to receive personalized recommendations, from a year earlier. As for coverage for
and 5G rollout as an integral part of this try out phones; conveniently sign up transportation infrastructure, the three
strategic approach. As a result, Telstra for mobile plans at video-assisted telecom firms offered 5G services at
achieved 5G population coverage of self-serve kiosks; and immediately collect 835 out of a total of 1,028 subway stations.
75 percent, ahead of its externally their purchased devices. These efforts, The service was also available at an
committed deadline. The accelerated coupled with its 5G network rollout, average of 53 out of 54 high-speed KTX
build-out and leadership in 5G reach have influenced consumer perception and SRT train stations.11
and availability has strengthened its with around 80 percent of Singtel’s
5G market perception, which is higher own subscribers – and 60 percent of all
than the average global 5G Pacesetter, Singaporean subscribers – expecting
with more than half of Australian Singtel to lead in 5G, higher than the score
consumers perceiving Telstra as the for the average global 5G Pacesetter
5G market leader. Telstra plans to (70 percent).
continue to set the pace, having already
announced a target of 95 percent 5G
population coverage by 2025.8
8
Economic Times: ‘Telstra aims to extend 5G coverage to 95% of Australia by 2025’ (2021)
9
Singtel: ’Singtel launches UNBOXED Lite 5G experience zones on Orchard Road’
10
’Five ways to a better 5G’
11
Korea Times: ’3 telecom firms offer higher 5G speed, greater coverage in 2021’14 Ericsson | 5G Pacesetters
5G FWA, to be a service worth
3. Extend Fixed 4. Capture new paying a premium for. Hence, beyond
just offering connectivity, it is essential
Mobile Convergence revenue streams in to enhance the 5G FWA offering
offerings with 5G home broadband with live TV and streaming options to
make the 5G FWA proposition more
Explore 5G convergent offerings Provide home broadband on 5G attractive, something that service
In some European markets that have In areas where service providers cannot providers in the US do well by bundling
a long tradition of convergent plans for supply fiber, service providers have started streaming services.
the household, service providers are now looking at 5G as a fixed broadband
extending 5G exclusively, or at preferential replacement, addressing consumers with
rates, for their fixed-mobile convergence a home broadband offer using 5G FWA. 5. Reimagine pricing
customers. Deutsche Telekom is a good Verizon in the US was the first to with premium value tiers
example of a service provider that is using launch 5G with its ‘5G Home’ offer that
a fixed mobile convergence product, complemented its fixed broadband Innovate with tariff plans by
MagentaEINS, to drive 5G adoption, footprint.13 This plan is non-binding, upselling to higher value 5G tiers
allowing also for multi-user benefits affordable and easy for customers to In markets where unlimited data
within the same plan.12 Deutsche install by themselves. volume options have become the
Telekom’s MagentaEINS offers a single T-Mobile US has also launched a similar norm (for example, in Switzerland and
contract that covers all services at home proposition, ‘T-Mobile Home Internet’,14 Finland), operators have had to explore
and on the move. The integrated product which today covers a footprint of 30 million ways to upsell higher value plans or price
now gives consumers the option of households. This increases the number tiers to customers. So far, these have
buckets or unlimited 5G mobile data of choices available to consumers in the been based on speed, prioritization
and home internet connection. Deutsche US for 5G FWA. of traffic and/or inclusive entertainment
Telekom has also redefined the notion Consumers are looking at 5G FWA and content. A good example is Elisa in
of community with MagentaEINS, offers to include additional services Finland, a service provider that has been
allowing anyone choosing this plan to similar to what they would typically successful in upselling the highest 5G
invite additional community members expect from fixed or cable broadband speed tiers.16 The company has already
to avail the same benefits at preferential providers. Two-thirds of consumers reported an increase of over EUR 3 in ARPU
rates. By doing this the service provider across 26 markets in a ConsumerLab for customers upgrading from 4G to 5G.
drives 5G adoption using additional study15 rated 5G TV, an aggregated
community connections. streaming service bundled with
12
Deutsche Telekom: ‘The MagentaEINS Plus revolution’
13
Verizon: ‘Verizon continues to expand 5G Home Internet to customers across the country’
14
T-Mobile Home Internet
15
’Five ways to a better 5G’
16
Elisa: ‘Interim report Q2 2021’ (July 2021)15 Ericsson | 5G Pacesetters
Conclusion
Regardless of their place in the
four 5G maturity stages, all service
providers can benchmark their
5G progress against today’s
5G Pacesetters. An analysis of the
5G Maturity Index shows that the
above paths have the greatest impact
on the overall index performance. By
focusing on the six strategies and their
related paths, more service providers
can emerge as 5G Pacesetters, win
in the eyes of their consumers and
successfully monetize 5G.
SK Telecom in South Korea has a growing of these partnerships are already visible
6. Lead with innovative portfolio of immersive 5G services and for Verizon’s 5G subscribers, such as the
platforms – notably its metaverse platform, immersive sports content delivered in
5G services ‘ifland’. It began operating its mixed reality partnership with the NFL, NBA and NHL.
Offer new immersive services and capture studio called ‘Jump Studio’ in April The opportunities to create and
experiences for consumers 2020. Then, in July 2021, it popularized deliver new services with better
Alongside premium price tiering based on social VR by rebranding the platform as consistency, reliability and performance
speed, another way service providers are ‘ifland’, which it aims to position as a major will grow exponentially with the
monetizing 5G is with bundled subscription metaverse platform in the 5G era.19 The introduction of new technologies such
video-on-demand services and also first month after its launch, the download as 5G standalone, network slicing and
new immersive 5G service and event rate doubled and its active users increased MEC. The possibility to develop tailored
experiences for consumers. ConsumerLab by over 24 percent. Moreover, access to offerings with guaranteed QoS (such as
research conducted in May 2021 suggests SK Telecom’s main content offerings – latency) coupled with preferred content,
that 5G users seem to be satisfied with ‘FLO’ (music streaming), ‘wavve’ (video such as cloud gaming or extended reality
network speeds, however 70 percent are streaming), ‘V Coloring’ (video ringback (XR) for particular consumer segments
dissatisfied with the innovative apps and tone), gaming pass and/or bookstore will increasingly become a reality. True
services bundled in their 5G plan.17 (app) – are bundled into its high-end 5G wearables such as mixed reality
Many service providers are trying to ‘5GX’ plans. Although not exclusive to 5G, glasses that operate independently of the
augment successful service concepts or customers on its high-end ‘5GX’ plans can smartphone and interact with sensors
introduce new immersive experiences for purchase these new immersive services at in public places (for example, buildings,
their consumers. EE in the UK is in a unique discounted rates. It comes as no surprise streets, cars or airports) and the cloud will
position as a 5G service provider in that it is that SK Telecom consumers report being further help transform the 5G network to
also a sports broadcaster. When launching more satisfied with innovative services a B2B2C engine for brands and content
5G it added new immersive features to the offered compared to consumers from partners to deliver their services and
BT Sport app.18 This included 360-degree other providers.20 experiences effectively over the 5G
viewing, ‘Watch Together’ live video chat network platform.
with friends in a split-screen mode, and Nurture ecosystem partnerships and In early 2020, Ericsson launched
real-time stats and graphics projected on programs for the smartphone and beyond a new program, Ericsson Startup 5G,
the pitch with ‘Manager Mode’. Many of the service providers in this study, to allow various ecosystem players and
By adding 5G-relevant features to especially those from the US like AT&T innovative start-ups developing consumer
existing popular digital services, in this case and Verizon, have also developed services to leverage the characteristics
AR, service providers can quickly showcase best-in-class partnerships that boost of the 5G network platform.22 This new
how 5G can enhance existing experiences. their 5G propositions and differentiation. program curates a network of global
Service providers in Asia, on the other hand, Verizon’s industry partnerships in 5G are start-ups, connecting them with a set
have both curated 5G-specific apps and a good example of this.21 They support of leading service providers to accelerate
services from scratch while also enhancing Verizon’s “Network-as-a-Service at commercialization of innovative 5G
existing services. Scale” strategy, which allows its partner applications and services. The program
brands to reach out to Verizon’s entire plans to incorporate 40 start-ups by
customer base and for Verizon to deliver the end of 2021 and partner with over
curated experiences to differentiate in 12 participating service providers by
a competitive consumer market. Some the end of 2022.
17
’Five ways to a better 5G’
18
EE: ‘EE Unveils UK’s Most Immersive Sports Viewing Service’
19
SKT Unveils New Metaverse Platform ‘Ifland’ (July 2021)
20
’Five ways to a better 5G’
21
Verizon: ‘2Q 2021 Earnings Conference Call Webcast’
22
Ericsson Startup 5GAbout Ericsson Ericsson enables communications service providers
to capture the full value of connectivity. The company’s
portfolio spans Networks, Digital Services, Managed
Services, and Emerging Business and is designed to
help our customers go digital, increase efficiency and
find new revenue streams. Ericsson’s investments in
innovation have delivered the benefits of telephony
and mobile broadband to billions of people around
the world. The Ericsson stock is listed on Nasdaq
Stockholm and on Nasdaq New York.
www.ericsson.com
Ericsson The content of this document is subject GFTL-21001523 Uen
SE-164 80 Stockholm, Sweden to revision without notice due to © Ericsson 2021
Telephone +46 10 719 0000 continued progress in methodology,
www.ericsson.com design and manufacturing. Ericsson
shall have no liability for any error or
damage of any kind resulting from the
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