Why 5G Value for Many Buyers is Not "Speed" or "Latency" Performance

Even if the 5G networks could magically spring up fully-deployed, with no construction obstacles, there would still be a lag between availability and customer acceptance. The reason is that not all customers are early adopters.

Early on, innovators and early adopters drive take rates. For them, the value of better performance is enough to create demand, even in the absence of compelling new use cases or applications. 

source: Researchgate 

Novelty does not create demand for mainstream customers, who need a value proposition oriented around some practical value beyond bragging rights. Mainstream customers must see a solution to some existing problem.

So cumulative adoption looks like an S curve. Innovators need little beyond the promise of performance to buy. Mainstream consumers need more than raw performance enhancements. They need perceived value beyond speed or latency improvements.

In some cases, that problem might be “predictability of service charges” more than “speed” as such. “No overage charges” is a value people understand. In other cases the lure might be “no additional cost video streaming subscriptions.” In yet other cases the value might be the ability to “use all the features of my new phone.”

The point is that mainstream consumers need tangible benefits, and those benefits might not flow directly from “faster speed” claims. 

The concept of the S curve describes consumer adoption behavior,  product life cycles, suggests how business strategy changes depending on where on any single S curve a product happens to be, and has implications for innovation and start-up strategy as well. 

source: Semantic Scholar 

Some say S curves explain overall market development, customer adoption, product usage by individual customers, sales productivity, developer productivity and sometimes investor interest. 

It often is used to describe adoption rates of new services and technologies, including the notion of non-linear change rates and inflection points in the adoption of consumer products and technologies.

In mathematics, the S curve is a sigmoid function. It is the basis for the Gompertz function which can be used to predict new technology adoption and is related to the Bass Model.

I’ve seen Gompertz used to describe the adoption of internet access, fiber to the home or mobile phone usage. It is often used in economic modeling and management consulting as well. 

The S curve also fits and explains consumer adoption of new technologies.