The adoption of 5G continues to rise in Tier 3 cities The adoption of 5G continues to rise in Tier 3 cities The adoption of 5G continues to rise in Tier 3 cities As India witnesses rapid digital transformation, the latest Ericsson ConsumerLab Report for 2024, titled “Elevating 5G with Differentiated Connectivity,” highlights significant shifts in user expectations and technological advancements. The report surveys over 2,000 active 5G users in Tier 1-3 cities across India, representing a staggering 180 million urban consumers. Its findings reveal India’s readiness for a new era of connectivity, where performance assurance and next-gen applications like GenAI are set to dominate.
The adoption of 5G continues to rise in Tier 3 cities, where user satisfaction has doubled year-on-year, matching global standards for fixed wireless access (FWA) and fibre internet. Satisfaction rates for 5G users have jumped from 48% in 2023 to 57% in 2024, driven by improved availability and performance, especially in less-penetrated areas.
India is emerging as a global leader in GenAI (generative artificial intelligence) adoption. Twice as many Indian users engage with daily GenAI applications compared to their US counterparts, with 21% of users actively exploring four or more AI apps. These apps range from AI writing tools and personalised shopping assistants to advanced photo and video editing software.
The report said that 32% of Indian smartphone users prioritise AI-powered features over camera quality when selecting their next 5G-enabled smartphone, showcasing the evolving consumer demand for intelligent and responsive devices.
India’s booming live events sector underscores the need for reliable 5G connectivity. From cricket matches to crowded tourist attractions, 64% of users acknowledge challenges with network quality in congested spaces. Notably, one in six users is willing to pay 20% more on monthly mobile bills for assured connectivity during such events, opening avenues for premium subscription models.
The rise of GenAI apps and wearable devices is expected to reshape mobile traffic patterns in India. With applications like real-time 3D content generation and AI-enhanced video processing, uplink traffic is projected to surge, demanding more robust 5G infrastructure.
Ericsson’s report also forecasts an industry shift toward semantic compression technology to manage escalating traffic, particularly as AR glasses and hybrid computing devices gain traction.
Indian users are increasingly willing to invest in apps with built-in performance guarantees. Around 40% of respondents expressed interest in reallocating 12% of their app spending toward elevated connectivity services. This trend positions telecom operators to explore premium offerings like low-latency and high-reliability network tiers.
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