India's digital transformation continues to soar, with the latest Ericsson ConsumerLab Report 2024, titled 'Elevating 5G with Differentiated Connectivity', spotlighting significant advancements in 5G adoption and evolving user expectations. The study, which surveyed over 2,000 active 5G users across Tier 1-3 cities, represents an impressive 180 million urban consumers and underscores India's readiness for a new era of connectivity powered by next-gen applications like generative AI (GenAI).
The report reveals a marked increase in 5G adoption in Tier 3 cities, where user satisfaction has doubled year-over-year. Satisfaction among 5G users across India has risen from 48 percent in 2023 to 57 percent in 2024, driven by improved availability and enhanced performance in less-penetrated areas. This growth has elevated India to global standards in fixed wireless access (FWA) and fiber internet performance.
A defining trend in the report is the rapid embrace of GenAI. Indian users engage with GenAI applications almost twice as frequently as their American counterparts, with 21 percent exploring four or more AI-driven applications regularly. These range from AI-powered writing tools and personalized shopping assistants to advanced photo and video editing software. Reflecting shifting consumer priorities, 32 percent of Indian smartphone users now value AI-driven features over camera quality when considering their next 5G-enabled device purchase.
India's thriving live events industry underscores the need for robust 5G connectivity. From cricket stadiums to bustling tourist hubs, 64 percent of users report challenges with network quality in crowded spaces. Notably, one in six users is willing to pay a 20 percent premium for assured connectivity during such events, signaling opportunities for telecom operators to explore premium subscription models. GenAI applications and wearables are also set to transform mobile traffic patterns in India. With real-time 3D content creation and AI-enhanced video processing driving uplink traffic, stronger 5G infrastructure will be essential. Ericsson predicts the adoption of semantic compression technology to manage rising data volumes, particularly with the proliferation of AR glasses and hybrid computing devices.
Indian consumers are increasingly willing to invest in connectivity-enhanced applications. Around 40 percent expressed interest in reallocating 12 percent of their app spending to services offering performance guarantees. This trend opens avenues for telecom providers to introduce premium offerings featuring low-latency and high-reliability network tiers, aligning with the country's growing demand for intelligent, responsive, and assured digital experiences.
India stands at the cusp of a technological leap, with 5G connectivity and GenAI redefining consumer behaviour and market opportunities.
