Wedoany.com Report-May 10, A new Ericsson ConsumerLab report, titled “Elevating 5G with Differentiated Connectivity,” provides valuable insights into the 5G trends and opportunities in the United Arab Emirates (UAE). It also highlights potential revenue opportunities for communication service providers (CSPs) in the 5G sector.

The report identifies four key trends shaping the UAE’s 5G market:

First, one in three 5G users in the UAE are no longer satisfied with basic 5G performance. The survey found that over 50 percent of users experience issues in high-traffic areas, leading to decreased satisfaction. As a result, ensuring both strong 5G coverage and sufficient capacity is essential for delivering differentiated connectivity.

Second, there is growing demand for differentiated connectivity. 44 percent of 5G users in the UAE are willing to pay for improved performance, particularly for critical tasks. Additionally, 32 percent are likely to be early adopters of such services, while 22 percent—referred to as “assurance seekers”—actively look for better connectivity for critical applications and are willing to pay extra for it. CSPs can capitalize on this trend by developing targeted strategies to serve these specific consumer groups.

Third, generative AI (GenAI) is changing how people use 5G. The report shows that 22 percent of 5G users are willing to pay 10 percent more for guaranteed performance on latency and uplink-sensitive apps, such as those using GenAI, augmented reality (AR), and video calling. As demand for these applications increases, CSPs must prepare for changes in network traffic, with rising demands on both uplink and downlink capacity, as well as low latency.

Finally, CSPs could see an increase in average revenue per user (ARPU). Moving towards differentiated connectivity could boost 5G consumer ARPU by 5 to 14 percent. Additionally, CSPs could unlock new revenue streams by offering quality-on-demand (QoD) network application programming interfaces (APIs) to application service providers. However, to fully capitalize on this potential, CSPs will need to explore alternative payment models, as preferred by 24 percent of 5G users.

The Ericsson report is based on a survey of over 1,100 respondents in the UAE, including 1,000 active 5G users, conducted in June and July 2024. This survey reflects the opinions of more than 6 million smartphone owners in the country, including over 3 million 5G users. The report is part of Ericsson’s ongoing research series, which has been tracking the global evolution of the 5G consumer market since 2019.

Petra Schirren, Vice President and Head of Ericsson Gulf at Ericsson Europe, Middle East, and Africa, commented on the findings: “The latest Ericsson ConsumerLab report highlights a valuable opportunity for growth in the UAE's 5G network landscape. As AI-powered applications become more prevalent, users’ expectations for enhanced connectivity are rising, and so is their willingness to pay for performance assurance. We look forward to working with our partners in the country to leverage the report’s insights, drive positive change, and enhance the overall 5G experience for consumers through co-creating tailored connectivity experiences.”