70% of consumers willing to pay more for 5G
Survey found people want better experiences with connected home devices and online gaming from 5G connectivity.
Consumers expect 5G to open up more opportunities to work at home, according to a survey of 2,000 people by Amdocs. Also, in good news for service providers, 70% said they would pay more to add the service to their monthly bill.
Amdocs asked consumers in the US and England about their expectations for 5G. According to the findings, 61% believe the faster speeds and better connectivity will create more opportunities to work remotely. Thirty-five percent believe the technology will lead to better video conference options, and 32% expect better video training and development opportunities.
SEE: Special report: How 5G will transform business (free PDF) (TechRepublic)
Amdocs suggested that enterprises could benefit from 5G service as well by re-inventing their private networks to leverage network slicing and IoT support.
Survey respondents expect to see benefits at home also. Consumers said 5G connectivity could improve their experiences with:
- Connected home devices 31%
- Cloud and online gaming quality 26%
- AR/VR experiences 64%
The majority of consumers would pay more to add 5G to the standard bundle of phone service, cable TV, and internet connection. They are less enthusiastic about adding other 5G-enabled services to the bundle such as:
- Connected home devices 23%
- Streaming subscriptions 33%
PwC predicts that 60% of the US will have 5G coverage by mid-2020, but less than 2% of devices will be 5G enabled. Currently, fewer than 1% of mobile devices can use 5G connectivity. Despite the discrepancy, PwC Principal Dan Hays said by the end of year, more mainstream 5G-capable devices will be available for purchase.
Gartner predicts that sales of 5G mobile phones will hit 221 million this year, grabbing more than 12% of the overall mobile phone sales. In 2021, that number is expected to more than double to 489 million.
IHS Markit said 5G phones may not dramatically boost the mobile phone market but might be enough to increase sales over Q4 2019 numbers. Chipset vendors have already announced lower prices on 5G system-on-chip devices, IHS added, helping the smartphone industry to trim the high prices of 5G smartphones.