Chinese consumers more willing to pay premium for 5G services while business users keen to migrate from 4G, says GSMA report
- Seventy eight per cent of Chinese users are willing to pay a premium for 5G mobile services, compared with 60 per cent for the US
- Globally, smart manufacturing IoT connections will grow fourfold between 2019 and 2025 to over 1.3 billion connections
Chinese consumers and businesses are “racing ahead” in terms of interest level and acceptance of next-generation 5G mobile networks, as stakeholders around the world begin to lay claim to the technology and consumers realise the benefits, according to a new report.
Among adult Chinese, 70 per cent intend to upgrade to 5G – the highest level in the world – according to an annual report published on Thursday by the GSM Association, which represents the interests of more than 750 mobile network operators worldwide.
Awareness of 5G among Chinese adults was over 85 per cent, lower than the awareness of adults in some developed countries including South Korea, Australia and the UK.
The 2020 edition of the GSMA’s Mobile Economy series said Chinese users also have the highest willingness to pay more to upgrade to the next-generation mobile network, with 78 per cent willing to pay a premium for 5G services, compared with 60 per cent and 57 per cent for the US and the world respectively.
According to a GSMA survey conducted in early January, nearly 50 per cent of Chinese respondents said they planned to buy a 5G smartphone as soon as they were available.
On the enterprise side, although many businesses around the world believe that 4G is “good enough”, China is a “clear exception” in this regard, thanks to early partnerships and 5G trials by the country’s three large telecommunications carriers.