November 13, 2024, London – The most recent User expectations for 5G connectivity that are brought by the increased use of generative AI applications have been changing and these shifts have been detailed in the latest report by Ericsson’s ConsumerLab.
The new report – Elevating 5G with Differentiated Connectivity shows that AI-based image and video creation apps have the features that 35% of 5G users around the world are prepared to pay more in order to use the apps conveniently.
Jasmeet Sethi, Ericsson’s head of ConsumerLab remarks that ‘As AI applications expand, consumer demand for AI performance requires high performing networks connectivity.
There are new opportunities in revenues for service providers focused on delivering bespoke connectivity experiences’ The report also indicates that Some 25% of AI app users are ready to pay a 35% additional surcharge for guaranteed reliable fast connectivity envisioning a new business opportunity for Comm Service Providers (CSPs) globally.
The findings from Ericsson’s reports also indicate that 5G users living in 16 countries have begun showing interest in the offerings of targeted marketing that guarantees good quality coverage on specific application types.
If this demand translates to effective end-users, this can provide approximately a 5% to 12% boost in revenue for over-average goods and services used per customer ARPU as CSPs transition to a model based on performance criteria.
The research also notes that ‘Assurance Seekers’- which is one of the user segments that accounts for 20 percent, are within a few potential users likely to be paying for basic connectivity.
As the number of users for generative AI applications is anticipated to increase by 2.5 times within the next five years, CSPs can take advantage of delivering high-end application experiences through quality-on-demand (QoD) APIs.
Network APIs can allow service providers to meet consumers’ changing digital appetite by providing high application connectivity, hence enabling them to offer enhanced connectivity for high-performance applications.
Sethi made it clear that this demand is a way forward for CSPs looking to penetrate a large and expanding market:
“The opportunity to drive growth by addressing the demands of the 5G and AI users is an opportunity worth pursuing. CSPs have the prospect of new revenue generation opportunities as they customize connectivity engagement.”
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