Canadians are willing to pay a premium to get a 5G plan with transformative service, a new report from Ericsson revealed.
Titled 5G Value: Turning Performance into Value, the study detailed that one in five Canadians using 5G services are willing to pay for a premium plan that guarantees superior network performance.
“Canadian 5G users have high expectations for their service; they’re seeking not just connectivity but rather differentiated connectivity where it matters most, like crowded arenas or public indoor locations, the value-added experience that enhances daily activities,” Jasmeet Singh Sethi, head of Ericsson ConsumerLab, said.
The report found that 22 percent of consumers are willing to pay up to nine percent more to get the best 5G network performance.
However, the view doesn’t represent the majority of Canadian consumers. The report states 41 percent of respondents want to see companies add data to a 5G plan if they’re increasing the price. A further 17 percent want to see bundles with apps or services, while 20 percent want to see tiered 5G plans with guaranteed speeds.
Canada’s “consistent switcher market”
Canadians aren’t scared to switch to a provider that suits their needs, the study notes.
Since the arrival of 5G in Canada, 20 percent of consumers have switched their service provider because of 5G network performance. These consumers reported issues at airports, stadiums, or concert venues.
“Poor 5G performance in public locations that matter most to consumers, such as event venues or airports, results in a 20-point NPS drop for service providers’ 5G network performance brands, leaving these users more vulnerable to switching providers,” the study states.
NPS stands for net promoter scores and is used to measure brand advocacy.
A second driving factor for customers leaving one service provider over another is pricing.
The research represents the views of 21 million online Canadians, including 12 million 5G users. Ericsson conducted online interviews with 1,220 consumers, including 600 active 5G users, between May and June 2023.
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Source: Ericsson ConsumerLab