Consumers demand 5G services and are willing to switch providers to get it: Nokia

Nokia has brought out two research findings on 5G. The first research highlights 5G Fixed Wireless Access (FWA) as the most desirable 5G use case amongst consumers globally and the second research on 5G plans, expectations and the biggest 5G WAN and LAN drivers for businesses across key industries in the US and UK.

5G Fixed Wireless Access (FWA) Research

The study, which was conducted by Parks Associates, surveyed 3,000 people in the UK, US, and South Korea and examined consumer understanding and demand for 5G services across six different use cases including autonomous vehicles, video surveillance, and immersive technologies. The research confirms that there is an opportunity for mobile operators to compete with broadband providers by offering FWA to homes and businesses.

This research highlights that 76 percent of all respondents regard FWA as the most appealing use case overall, with 66 percent claiming they would subscribe to 5G FWA if it cost the same as their current broadband service and delivers the same or better performance.

"Indeed, more would subscribe if it cost less. Currently, 41 percent of respondents only had the option of a single broadband provider with many resenting this lack of choice. This highlights the opportunity mobile operators have to offer FWA as an alternative to traditional broadband services," reports Nokia.

Nokia says that the research was conducted prior to the global COVID-19 pandemic, which has driven the world to work and learn from home, however, this has coincided with consumer demand for better quality video calls. Indeed, 90 percent rated high-quality, uninterrupted video streams a “very valuable” aspect of 5G.

Additionally, a majority of consumers find 5G video use cases attractive, with 66 percent rating video capture and streaming applications appealing, and 69 percent rating video detection and alerting appealing. More than one-third of consumers found AR experiences for remote commerce appealing even before the COVID-19 crisis. The need and appeal has likely increased with social distancing.

More broadly, the outlook for 5G is positive based on the findings. Although the current familiarity with 5G remains quite low, with just half of the consumers claiming any level of familiarity, the appeal of 5G increases with education. Eighty percent of those very familiar with 5G find it appealing compared to 23 percent of those who are unfamiliar.  Further, over 50 percent of smartphone owners said they were likely to switch operators if their current provider doesn’t offer them 5G in the next 12 months.

5G drivers for enterprise IT and OT

Nokia's second research highlights 5G plans, expectations, and the biggest 5G WAN and LAN drivers for businesses across key industries in the US and UK. The study, which was conducted in partnership with Parks Associates and surveyed over 1,000 IT decision-makers, covered key enterprise segments including energy, manufacturing, government/public safety, and automotive/transportation.

Results reveal that two-thirds of participants surveyed (65%) are familiar with 5G, and one third (34%) report they are already using 5G and are highly satisfied with the service. While nearly half (47%) of IT decision-makers say their organizations have already started planning for 5G, others are waiting for more widespread 5G availability (54%), and nearly one third (30%) reported they would also like to better understand the value of 5G before developing a strategy to use it in their organization.

The research also identified video as the ‘killer app’ for 5G across verticals and different business sizes, with 83% finding it compelling and 48% citing 5G-enhanced video monitoring as a near-term (0-4 years) opportunity. Respondents can readily grasp the additional value that 5G can bring to video, with 83% finding video alerts such as detecting and recognizing who is on-premise as valuable capabilities. The video was followed by remote-controlled machinery with 77% of participants interested, and connected cars at 73%.

The COVID-19 pandemic started as operators around the world were ramping up 5G network rollouts, exploring new use cases, and business models, particularly for enterprises. With survey respondents revealing that 61% of businesses would look to a mobile operator for direction when planning 5G services, CSPs have an opportunity to position themselves with those enterprises who are looking for 5G expertise during these uncertain times.