A new report from technology vendor, Ericsson, has revealed that the growing adoption of Generative Artificial Intelligence (GenAI) is driving a surge in demand for enhanced 5G connectivity across the globe.
While noting that this creates a significant opportunity for telecom operators, Ericsson said 35% of surveyed 5G users expressed an interest in higher-tier services beyond standard 5G performance.
The report reveals a willingness among consumers to pay a premium for “differentiated connectivity,” particularly for performance-sensitive services such as video calls, streaming, and generative AI applications.
Ericsson’s findings indicate that 5G users are not only expecting better network performance but are also prepared to pay up to 35% more for seamless, performance-assured connectivity.
“Today, 5G users are looking for performance assurance on core services such as video calls and streaming, while generative artificial intelligence (GenAI) users are going a step further, and are already willing to pay a premium that is 35% higher than these core services.
“This signals a growing demand for enhanced, performance-assured connectivity that goes beyond traditional application expectations,” Ericsson stated in the report.
Ericsson noted that network quality has become an integral part of consumers’ daily lives, from morning routines to late-night browsing, and users increasingly expect uninterrupted, high-speed connections.
“Enhanced 5G performance is especially valued in high-traffic areas like stadiums, transport hubs, and shopping centers, where connectivity challenges often arise,” it stated.
Although three telecommunications companies have launched 5G networks in Nigeria, only two are currently providing the service, which offers higher internet speed compared to 4G.
As of September 2024, data from the Nigerian Communications Commission (NCC) indicated that 5G penetration in Nigeria stood at 2.19% while 4G accounted for 44.96% of connectivity in the country.