Consumer 5G: how the mmWave value proposition
can address pain points
INSIGHT SPOTLIGHT
At the end of October 2022, a total of 20 countries had
allocated mmWave spectrum for 5G, with almost 10 more
announcing plans to do so over the next year. mmWave 5G
service launches across seven countries provide insight into
what the technology can deliver, but they also help highlight
the room for growth that remains.
Building on these launches, the recent MWC Las Vegas 5G
mmWave Summit showcased cutting-edge service
experiences and technology innovations. It also added to the
mmWave conversation by asking how consumers view the
Analysis
Over the past two years, GSMA Intelligence has argued that mmWave
5G is a ‘when’ not ‘if’ technology, based on extensive total cost of
ownership (TCO) analyses, consumer data demand and the trajectory
of the mmWave 5G ecosystem. Understanding consumer demand for
the services enabled by mmWave 5G and how this varies across
regions and user types can help operators decide how to monetise and
deploy mmWave 5G, and guide ecosystem suppliers on how best to
develop mmWave 5G products and solutions.
Consumers and mmWave 5G: evaluating the connection
To understand the intersection of consumer demand and mmWave 5G
capabilities, Qualcomm surveyed 4,500 consumers across nine leading
5G markets (US, UK, France, Germany, Spain, Italy, Japan, South Korea
and China) earlier in 2022. The survey focused on 18–59 year-olds with
mid-range to premium smartphones ($400+ price points). To focus on
where mmWave can lend value, daily data users frequenting crowded
areas and those with connectivity issues were targeted.
As many consumers are not familiar with mmWave technologies
(given the limited number of launches and the different ways it is
marketed where it has launched), the survey focused on experiences
and outcomes rather than explicit mmWave demand. As a proxy for
mmWave 5G, it referred to a ‘5G-enhanced service’ characterised by
fast upload and download speeds (up to 5× faster than current 5G
services and 10× faster than LTE), instant cloud service access, and
high-quality video and streaming performance, particularly in crowded
areas.
Crowded areas: just another term for pain points
A key question in the survey dealt with the issues users face when
using 4G/5G smartphones. Options included poor coverage, poor
indoor connectivity, limited connectivity and slow speeds in crowded
areas, lag or dropped connections during video conferences, and
specific connectivity issues with cloud services, 4K video and gaming.
Given the capabilities it can bring, these are issues that mmWave 5G
could solve. According to the GSMA Intelligence Network
Transformation Survey, coverage is a top 5G RAN investment priority
for operators, so it was no surprise to see this reflected in consumer
views too.
© 2022 GSM Association @GSMAi
December 2022
value of mmWave in support of 5G. What problems does it
solve? How much do consumers value it? And how would
they want to access to it? Answers to these questions were
the result of a consumer survey by Qualcomm.
This report forms part of a series, in collaboration with
Qualcomm, exploring in detail the survey data to better
understand the mmWave value proposition for consumers.
The series begins with the pain points mmWave can address.
As shown in the chart, coverage and connectivity issues dominate the
top five responses. However, three of the top five are issues related to
crowded areas. Where such areas present a problem due to dense data
demand within a small space, the massive bandwidth of mmWave 5G is
a clear benefit, while the propagation disadvantages compared to low-
band spectrum are less of a hindrance.
Measuring the value attached by consumers
Identifying issues that mmWave 5G could solve is an important step in
clarifying its value and the potential cost savings that could be
achieved compared to other solutions. However, it stops short of
quantifying its additional value or signalling how much consumers care.
One way to measure the magnitude of the value is to look at what
consumers indicate they would pay to solve their problems – in this
case, to obtain a service in line with what mmWave 5G could deliver.
For the 69% of customers facing connectivity issues on a weekly basis,
more than three quarters would pay a premium for ‘5G-enhanced
services’ – translating to more than half of all consumers surveyed and
pointing to a tangible mmWave 5G monetisation opportunity. How
much, exactly, they would be willing to pay – and for what – is just as
important; this will be addressed in subsequent analysis.
Source: GSMA Intelligence analysis of Qualcomm data
Connectivity pain points for consumers: crowded areas frustrate
Which of the following issues do you have when using 5G/4G/LTE cellular
connectivity on your current smartphone?
Limited cellular connectivity in
28%
crowded areas
Slow downloads in crowded
areas
27%
Poor cellular coverage 27%
Poor indoor cellular connectivity 25%
Slow uploads in crowded areas 25%
www.gsmaintelligence.com
 Consumer 5G: how the mmWave value proposition can addresses pain points
Implications
Mobile operators
• Think beyond network TCO – In planning their 5G network
rollout and densification strategies, operators need to
recognise the value of mmWave spectrum beyond simply
adding network capacity. mmWave spectrum can play an
important role in addressing new data demand. Yet, where
mmWave 5G can deliver premium (monetisable) experiences,
its revenue-generation capabilities need to be considered as
well.
• Know where mmWave makes sense – Industry discussions
on the value of mmWave spectrum generally revolve around
two topics: the reach of mmWave 5G (propagation) and its
ability to support users on the move (mobility). New antenna
technologies and innovations are pushing the boundaries on
both fronts. Regardless, while mmWave spectrum will naturally
be disadvantaged in terms of propagation and mobility
compared to mid- and low-band spectrum, it has a significant
advantage in capacity hotspots where users gather but are not
necessarily mobile at high speeds (event facilities, transport
hubs, shopping centres and tourist areas, for example).
• Recognise the link between device and service – Second
only to battery life, 5G connectivity was among the top
consumer criteria for buying a new smartphone according to
the survey data. Similarly, users with mid-range devices ($400–
599) report experiencing the top three 4G/5G connectivity
issues more than users with more expensive devices.
Operators represent the primary channel for device sales in
many markets and need to leverage this position to drive
device sales that can directly impact customer experiences and
propensity to upgrade to 5G.
This analysis was supported by Qualcomm, leveraging its mmWave consumer survey data and insights.
Related reading
Vision 2030: mmWave Spectrum Needs
The economics of mmWave 5G
© 2022 GSM Association @GSMAi
Ecosystem suppliers
• Listen to device demand – mmWave 5G service reach is
gated by device availability. Without a broad array of
compelling mmWave devices, at different price points,
consumers cannot take advantage of it. This impacts the value
for operators in deploying mmWave 5G. Recent discussions
with operators have revealed vocal demand, bordering on
pleas, for more mmWave smartphone availability. Suppliers
need to respond if they want to help their operator partners
succeed.
• Link mmWave to use cases – Across the user profiles
identified in Qualcomm’s consumer survey data (tech
enthusiast, social user, gamer and hybrid worker), there is little
difference between how each sees the value of crowded area
connectivity, though tech enthusiasts do tend to have more
issues (likely given their higher expectations). As device
makers target these users in their product development and
marketing strategies, it is important to recognise that each
group values crowded area connectivity more than coverage
and indoor connectivity in general. The targeting of these user
groups with specific feature development and product
marketing must consider their demands, including the value of
mmWave integration.
• Re-double Asian and European efforts – European
consumers identify service performance in crowded areas as
less of an issue than those in China and South Korea. Those
Asian consumers over-index on the same question. Given
Asian consumer demand, infrastructure and device makers
need to leverage 5G rollouts in the region to deliver products
that address (and prove) the value of mmWave 5G. Those
insights and products can then be taken to Europe to
demonstrate the importance of crowded area service
performance and how to enable it.
Author
Peter Jarich, Head of GSMA Intelligence
Contributor
Janna Smith, Sr. Manager Strategy and Analysis, Qualcomm
www.gsmaintelligence.com