A new study from Intel Corp. has found most Americans are ready to pay for and adopt next-generation 5G wireless technology to bring faster speeds, lower latency and open up a host of new possibilities in the realm of media and entertainment.
However, the industry still needs to work toward improving the 5G knowledge gap in order to promote mass adoption of the technology, the study said.
While 54% of Americans surveyed said they were willing to switch to 5G for all their connected home needs including next-generation televisions, augmented instruction and immersive live events, many people regard 5G as simply another speed increase and don’t grasp the full potential the technology will bring, Intel said.
In fact, 58% of those surveyed admitted to not being knowledgeable or ever having heard of 5G but agreed, despite not having information about 5G's other benefits, that a bump in the speed of current technologies would be welcome.
A previous study from Intel found that 5G would drive $1.3 trillion of new revenues in just the media and entertainment segment alone based on what the technology will allow telecom companies and third-party vendors to create. This study also coincides with a report from Ericsson that found that 5G adoption will be the fastest generation of cellular technology on a global scale in history.
"Digital disruption is eroding the borders that once separated entertainment, media, technology and telecommunications companies,” said Jonathan Wood, general manager of business development and partnerships for 5G at Intel. “The next generation of media and entertainment growth is not just about what content companies create but how seamlessly customers can access it and the unique ways they can interact with it."
The news that Americans are not just willing to switch to 5G but perhaps even pay higher rates for new devices and services is good for companies currently deploying 5G network infrastructure that is expected to grow from about $528 million this year to $26 billion in 2022, according to research firm IDC.
What Will They Pay For
According to Intel’s survey, household income does not play a role in what consumers are willing to pay for in terms of 5G. In fact, 72% of Gen Zers (aged 16-25) would be willing to pay $20 more per month than they are already paying and 40% of Americans would pay an extra $10 a month for services while 27% would pay $20 a month.
The features of 5G getting Americans most excited include:
- Faster speeds (64%)
- Reliability (43%)
- Responsiveness (36%)
While 5G has a long way to go until it is fully available for everyone and at the speeds and latency that are promised, it is indeed coming and Intel said the technology will create new business models allowing companies to tap into new revenue streams and create relevance with their audience at scale.
The study is part of Intel’s “5G Economics and Entertainment Report” examining consumer’s expectations on the upcoming wireless technology.
