Value of 5G: You Might Have to Try it to Determine its Value

At least according to one survey by Morgan Stanley, few customers presently  think 5G is important enough that they would switch service providers to get it. In part, that is probably because, in most markets, 5G is provided by all service providers, or will be. 

Switching behavior is likely to happen only when the incumbent 4G supplier does not offer service plans that fit the actual needs of particular users, when those users actually want to buy 5G. As always, the essential requirements are satisfactory value-price relationships and expected network coverage. 

source: Morgan Stanley 

All that noted, consumers might find that the advantage is speedier internet access, though for most consumers, the advantage might not be as valuable as speedier home broadband access. 

In principle, a 5G phone has only a single user, where a home broadband account might have multiple users. Also, most users spend most of their time within range of a Wi-Fi connection, at home, work or school. 

Mobile access provides its unique value only when customers are out and about, and then only when not driving or engaged in any other other activity requiring their focused attention. Faster app performance might be noticeable using 5G, compared to 4G, but the value is proportional to the amount of time and number of operations that are conducted while on the go, compared to usage in fixed settings. 

“New 5G applications” should eventually become important, but that faster loading is--up to a point--the present advantage of 5G, compared to 4G. 

All that noted, the relative value of “faster loading” on a mobile device might not be as great as in a fixed network setting (home broadband, Wi-Fi access). On the other hand, users on unlimited plans might sometimes find the 5G experience faster than their Wi-Fi experience, for any number of reasons. 

If 5G is typically twice as fast as the most-used Wi-Fi connection or typical “on the go” 4G experience, then 5G should have fairly high value for those users. 

The bottom line is that for some users, faster 5G app loading and performance will provide significant value. Users who spend most of their time on faster Wi-Fi connections, or who move about in areas with good 4G speeds, might not see advantages that are significant. 

The problem is that there is no way to know for certain until 5G is experienced in one’s actual use settings.