AI generating 5G with a difference

Increased usage of generative AI applications by smartphone users could be a revenue booster for telecom service providers. A new study by networking solutions firm Ericsson showed that telcos can enhance their 5G revenues by 5-12% by offering differentiated, high-quality connectivity for GenAI apps. This could be the fastest growing monetisable category for telcos besides use cases like video calling, streaming and online payments, as per the study

• Telcos could cash-in by offering quality-on-demand APIs to developers

• India, Thailand, and Saudi Arabia have double the share of smartphone users interested in differentiated connectivity compared to markets such as France and Spain

• 35% 5G smartphone users interested in paying for differ entiated connectivity

• 2.5x Likely growth on weekly basis in number of users of GenAI apps in 5 years

• 1 in 4 GenAI users willing to pay up to 35% more for high-speed connectivity

• 1 in 3 5G smartphone users willing to reallocate 10% of mobile app spends for better connectivity

This reflects consumers’ expectations for AI apps’ future capabilities - perhaps relating to image, audio or video generation -and their willingness to pay for those capabilities to perform in a speedy and high-quality way. This signals an opportunity for CSPs globally to meet this demand through tailored connectivity experiences

(Survey Size: 23,000 smartphone users, Age: 15-69, 16 key markets Source: Ericsson ConsumerLab Research)