Over Three Crore Indians Expected To Switch To 5G Phones In 2023, Says Ericsson

As many as 3.1 crore users are expected to upgrade to 5G phones in 2023, taking the total number of 5G users in the country to over 10 crore, according to Ericsson.

India is expected to witness accelerated 5G adoption in the coming months, Ericsson Consumer Lab said in a global survey. The communications major's study covered India's top 100 cities, representing 25 crore smartphone users and 5 crore 5G users.

"The study determined the 3.1-crore figure by surveying tech attitudes and affordability among users in India," Jasmeet Sethi, head of Ericsson ConsumerLab, said. "About half of those expected to switch plans will pay less than Rs 20,000 for a 5G device."

Sethi said 5G users in India outpace their global counterparts in daily engagement with apps. "On (an) average, Indian consumers spend two hours more per week than 5G users in early adopter markets such as the U.S., South Korea, and China."

He said 5G users in India stand out for their high engagement with apps, such as streaming videos in 4K/HD format, video calling, using AR apps, and mobile gaming.

Sethi said about 20% of those willing to switch to 5G phones are willing to pay up to a 14% premium for innovative services and differentiated 5G connectivity. "About 40% of the market is still looking for more data, but about one in five are willing to pay a 14% premium for a 5G-rich app-bundled plan or quality-of-service offerings."

Operators can take the journey of providing differentiated packages for 5G users to open up newer models of monetisation, Sethi said. He took the example of telecom operators offering temporary 5G boosts, specific uplink-first packages targeted at content creators, and optimised mobile gaming packages for gamers.

India is still in the early stages of building out a 5G network, with about 3.3 lakh base transceiver stations set up. Only Reliance Jio Infocomm Ltd. and Bharti Airtel Ltd. have rolled out 5G on their networks, while Vodafone Idea Ltd. has lagged.

In August last year, the Union government sold airwaves worth Rs 1.5 lakh crore in a weeklong 5G spectrum auction.