Monday, February 3, 2020

Will Consumers Pay More for 5G? Yes and No

If you spend a lot of time with consumer surveys, you will have developed an attitude of skepticism about the results of most consumer surveys, simply because respondents often say they will do what they will not, or say they will not do something they, in fact, will do.

Consider surveys that show consumers are willing to pay more for 5G service. It is a nuanced matter. Any number of other offer attributes, such as unlimited usage plans, could be tied to 5G. In such cases, it is not clear that 5G, per se, is the upgrade driver, compared to the lure of unlimited usage, for example. 

Bundling 5G with other desired features is another way “5G” might represent a way to increase average revenue per account. A survey by Amdocs has found that consumers will pay more for 5G, if that feature is bundled with other elements, such as connected home devices and streaming, for example. 

But that is a nuanced case. Consumers are willing to boost spending to get additional features and discounts overall. So, yes, maybe consumers wil pay more for new 5G service, if it also lowers overall costs for a basket of services, much as consumers often are willing to pay for a triple-play bundle is it results in lower spending overall. 

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