The 5G question leading into 2020 was a familiar one: Would this be the year that 5G finally takes hold? There was reason to be optimistic. Early on in the year, Global Wireless Solutions’ (GWS) testing at the Super Bowl in February - a demanding environment - showed significant, tangible improvements when the latest generation of wireless technology was measured for speed [1]. Shortly thereafter, the pandemic hit, and while it may not have slowed 5G adoption, it did compound consumer confusion and prompt an increase in conspiracy theories; theories and misinformation that seem to stick around perhaps in part because the wireless industry sent out mixed, unrealistic messaging about what to expect with the current rollout of 5G services vs. what ultimately will be available in future years.
Consumers are confused
GWS conducts annual surveys that analyze consumer communication habits across the United States. The biggest takeaway from this year’s survey was the pervasive confusion amongst consumers regarding 5G. And this is despite massive ad spending by major telecom carriers and others to promote the next generation wireless technology.
Nearly half (49 percent) of U.S. consumers across all major carriers believed their iPhone was capable of accessing 5G, despite the fact that the first Apple 5G iPhone had not yet been released at the time of the survey. Furthermore, 45 percent of rural smartphone users were unsure if their carrier provided 5G while 47 percent of suburban smartphone users were also not aware of their operator’s 5G capabilities. [2]
If consumers do not understand the benefits and offerings that 5G can provide, then they are less likely to pay for the new technology. In fact, it wasn’t surprising that the survey also found 38 percent of consumers would not pay more to upgrade to a 5G phone [3]. To facilitate increased adoption, and reap the full benefits of 5G technology, further market education from operators, device manufacturers, and other consumer facing industry players is critical.
Newly deployed 5G networks - aren’t they supposed to be super-fast?
The different iterations of 5G also spurred on uncertainty. During 2020 there were commercial 5G networks deployed that were not stand-alone but rather 5G merged with existing 4G networks and involved capacity usage at lower spectrum bands that did not translate into much faster speeds - creating a hybrid of the technologies that reverts to the previous generation when 5G resources aren't available. Keep in mind that throughputs on 5G-only networks are expected to be at least ten times faster than 4G networks. As a result, the launch of the heavily-promoted 5G networks appeared far slower than what was promised.
Big shoes to fill - did you know that the networks leading up to 5G were already much improved and appreciated?
In recent years, telecommunications companies have spent billions of dollars investing in wireless networks, technology and infrastructure to get ready for the deployment of 5G.
These investments have paid dividends. By hardening and upgrading network infrastructure to lay the foundation for 5G, operators were ready for the unusual fluctuations posed by COVID-19. And despite the increase in network traffic along with upside down traffic patterns, wireless networks were able to meet consumer expectations. GWS’ 2020 nationwide survey found that 84 percent of consumers believe their carrier met their mobile communications needs during the pandemic [4].
These investments have also led to improved network capabilities in general as the country moves forward into the era of 5G. For example, there has been a dramatic increase in recent years in data throughputs along with marked improvements in voice calling and video streaming. In fact, over the last three years that GWS has evaluated and reported on the best U.S. network, average throughput speed has increased 62% across all operators [5].
This means that consumers recognize the strengths of their current 4G networks - so they would have high expectations if a new technology (i.e., 5G) is meant to be better, improved and much faster, and ultimately replace what they know has been a “good thing.”
5G benefits - explain the process, don’t over hype, and consumers will get it
The most anticipated benefit from 5G for consumers is an increase in speed. And in various commercial trials, significant increases in throughput and download speeds were immediately evident. All the way back in February at the Super Bowl, maximum throughput speeds were six times greater than blended 4G/5G [6]. With drastic increases in speed coupled with the lower latencies and improved capacity that comes with stand-alone 5G, the next generation of network technologies and new devices will usher in use cases that weren’t previously possible with 4G and LTE. But again, the key word is “stand-alone” and if this wasn’t explained to consumers, it should be; and even if it was, it should be reiterated.
While industry messaging around the launch of 5G and what to expect initially may have been “lost in translation”, one area in which consumers indicated a solid understanding involved future use-cases that will benefit most from 5G. When asked to select which applications they believed will improve most dramatically from the technology, consumers pointed to Smart Cities, Telehealth and Telemedicine, and Public Safety and Emergency Response as the top three. While most consumers (54 percent) believed 5G deployment should be accelerated to help with current and future crisis situations such as COVID-19, it was curious that those three public safety answers toppled other applications that appear exciting and have received more media attention; such as autonomous vehicles and augmented and virtual reality [7].
With 64 percent of consumers planning to buy a smartphone between now and the end of 2021 [8], the wireless industry faces a prime and renewed opportunity to drive enthusiasm and increase awareness surrounding new 5G products and services. 5G has the potential to be an extreme area of growth for the global telecommunications industry as a projected $31 trillion in revenue is expected by 2030 from 5G related technologies. A key to ensuring this growth is for operators, smartphone manufacturers, and other industry players to make a concerted effort to help consumers better understand and trust “the process” as well as the benefits of the next-generation wireless technology - a better understanding will translate to a more widespread consumer adoption.
Sources:
[1] Network Operators Go Head to Head on the 5G Playing Field at the Super Bowl, February 5, 2020
[2] Nearly Half of iPhone Users Believe They Already Have a 5G Device, October 8, 2020
[3] Nearly Half of iPhone Users Believe They Already Have a 5G Device, October 8, 2020
[4] Nearly Half of iPhone Users Believe They Already Have a 5G Device, October 8, 2020
[5] AT&T Considered Best US Network Based on the Most Comprehensive Testing and Consumer-Focused Evaluation, September 2, 2020
[6] Network Operators Go Head to Head on the 5G Playing Field at the Super Bowl, February 5, 2020
[7] GWS U.S. Consumer Research Survey - Teleworking during the pandemic, August 18, 2020
[8] Nearly Half of iPhone Users Believe They Already Have a 5G Device, October 8, 2020
