Consumers' limited knowledge of 5G presents a hurdle for telecoms
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Telecom software and services company Amdocs surveyed 2,000 UK and US consumers revealing insights into consumers' understanding of 5G. In particular, UK consumers are highly aware of 5G's existence, with 95% recognizing the term - which could be a result of a high-profile national debate around Huawei's role in the country's 5G build-out.
However, just over half (55%) of UK consumers say they're able to articulate the benefits of the next-generation networking technology. This awareness seems to be translating into 5G adoption, as 35% of UK consumers plan to purchase a 5G smartphone in 2020, per Amdocs data cited by Telecoms.com.
The bulk of 5G adoption will likely be driven by consumer upgrades to new smartphones equipped with 5G chips as standard, rather than consumers looking for 5G phones. In the latter half of 2020, most major smartphone brands running Android will include a 5G chipset in their upcoming flagship device models, and Apple is expected to unveil up to four 5G iPhone models in late 2020.
Additionally, 5G is expected to penetrate lower-cost smartphones in 2020 as well. This proliferation of 5G among phone models means more consumers' next phone could be a 5G device - whether they intend it or not - as they buy the newest version of their current device. However, consumers are holding onto their phones for longer, meaning upgrades to 5G phones will likely be a slow process: In 2018, in EU countries including the UK, the consumer upgrade cycle increased to 26.2 months, from 23.4 in 2016.
To drive 5G upgrades, smartphone makers and carriers that sell devices need to extol the value of 5G phones. Two popular consumer 5G use cases they can emphasize are media streaming or cloud gaming: 74% of consumers would use a 5G handset to interact with streaming services and 27% would use their 5G devices for cloud gaming, per Computer Weekly.
This can be done by giving consumers real-world examples of how 5G can affect their lives to illustrate value beyond network performance numbers. For example, users can download season 3 of Netflix's hit show Stranger Things in just a handful of minutes with 5G, compared with almost an hour on a 4G network.
To show consumers this speed in real time, carriers and smartphone manufacturers should set up pop-up stands in public areas, like malls or parks, to allow consumers to test a 4G device back-to-back with a 5G device. This will allow consumers to experience the difference for themselves and pass along the experience to friends and family - consumers are twice as likely to trust friends and family for shopping recommendations than any other source.
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