CSPs could generate up to USD 131 billion by 2030 from digital service revenues alone, by proactively bundling and marketing 5G use cases. About 40 percent of this total would be driven by consumers spending on enhanced video, augmented reality (AR), virtual reality (VR) and cloud gaming over 5G networks. Augmented reality (AR) is expected to drive over half of all consumer spending on immersive media by 2030, starting with gaming and extending to other areas like shopping, education and remote collaboration.
The report also found that, although people amid the coronavirus pandemic are willing to spend less for 5G subscriptions, there are still enough that will pay a decent premium for the latest services. Ericsson notes that the average consumer was willing to pay a 20 percent premium for 5G in early 2019, but that the figure has dropped to 10 percent at the end of 2020. Still, one out of three early adopters globally are willing to pay the 20 percent premium, which means early adopter take-up could help drive economic recovery.
Ericsson believes that by proactively driving 5G consumer adoption, CSPs could gain 34 percent higher 5G ARPU by 2030. This could boost consumer revenues at a compound annual growth rate (CAGR) of 2.7 percent, compared to flat revenue growth of 0.03 percent if they take a passive approach.
