Over one third of UK consumers plan to buy a 5G smartphone this year

3^rd Feb 2020

Research from Amdocs reveals that 5G marketing is working, but consumers still lack knowledge of the broader services it could enable 

Research from Amdocs has today revealed that 35 per cent of UK consumers plan on buying a 5G smartphone in 2020. The study of 1000 UK consumers revealed that not only is there a demand for 5G devices, but awareness of the next generation standard in the UK is widespread, less than one year on from the first 5G network deployment in the country.

Regarding consumer understanding of 5G technology, the research found that:

• Only 5 per cent of the UK public has not heard of 5G.
• 55 per cent of UK consumers claim to know what 5G is, but only a basic understanding of its benefits over 4G.
• 40 per cent of the UK public claim to have an understanding of 5G’s technical benefits, such as gigabit-speed, low-latency connectivity.

The research indicates that 5G marketing from Communication Service Providers (CSPs) is clearly having an impact on consumers – only 30 per cent of respondents claiming that they have no intention to buy a 5G smartphone at all – but more can be done to help promote the wider benefits of the technology.

Consumers look to 5G for streaming boost and remote working opportunities

When asked which services they are interested in utilising a 5G handset for, Internet browsing came first (selected by 81 per cent), followed by streaming services (74 per cent) and connected home devices (32 per cent). Currently ranking low on the list were some of the newer and more innovative services that 5G promises to support, such as VR and AR (16 per cent) and cloud gaming (27 per cent).

Consumers also recognize the benefit of 5G to their remote and mobile work experience. According to the findings, 35 per cent believe the technology will lead to better video conference options, 32 per cent anticipate better video training and development opportunities, and 61 percent believe it will create more opportunities to work remotely with faster internet.

Angela Logothetis, CTO, Open Networks at Amdocs said: “Consumers’ first experience of 5G will be a faster, more responsive and consistent experience for the types of things we do today – internet access, streaming video, accessing and storing photos in the cloud. We will see service providers start to bundle and monetise these popular applications and content as part of 5G. The more futuristic services – driverless cars, VR and AR technology – will take time – although we are seeing interest in early capabilities – like augmented reality street maps. There is definitely an opportunity for new killer 5G use cases to be developed to drive demand for 5G.”

The opportunity for mobile operators

Logothetis continued, “Our experience in Asia and North America shows that 5G plans for minutes, text and data are priced competitively with 4G plans as service providers race to grow their 5G subscriber base. Over time, service providers will look to differentiate their 5G services. Service providers won’t just want to be the fastest network – they will want to be the fastest network for streaming video, or the most responsive network for multiplayer gaming. Being able to deliver and monetise this quality of service will be key to revenue growth. Amdocs’ research indicates that half of UK consumers would consider bundling 5G with their home internet packages, and 25 per cent with OTT video services, such as Netflix and Amazon Prime.”

ENDS

*Source: December 2019 Dynata survey of 1,000 U.S and 1,000 U.K.