Generative AI drives demand for high speed internet - Ericsson report

Ericsson Consumer Lab on Wednesday released a report indicating that the rising use of Generative Artificial Intelligence applications was driving consumer interest in premium connectivity.

Jasmeet Sethi, Head of ConsumerLab, Ericsson, made this known in the company’s latest report.

According to the report, titled “Elevating 5G with Differentiated Connectivity”, 35 per cent of 5G smartphone users are willing to pay for guaranteed high-end connectivity.

Sethi said that as AI-powered applications became more prevalent, users’ expectations for enhanced connectivity was rising.

He noted that this signaled an opportunity for communications service providers (CSPs) globally to meet this demand through tailored connectivity experiences.

The report revealed that almost one-in-four generative AI users were willing to pay up to 35 per cent more for guaranteed fast and secure connectivity for high-capacity applications.

Sethi stated that the differentiated connectivity revenue generation potential for CSPs would increase as they transition to performance-based business models.

He explained that CSPs could tap into this demand by exposing Quality on Demand (QoD) network APIs to developers, enabling them to offer premium, high-performance experiences.

The report, which surveyed over 23,000 smartphone users from 16 key markets, representing 1.1 billion people, including 750 million 5G smartphone users, identified revenue generation opportunities for CSPs.

Sethi said: “The survey shows that markets such as India, Thailand, and Saudi Arabia have doubled the share of smartphone users interested in differentiated connectivity compared to markets like France and Spain.

”The report outlines a five-stage journey for CSPs, from non-differentiated mobile broadband to performance-driven and platform-based models,” he said.