Consumers Interested in 5G but Availability, Price May Deter Early Adoption, Says Parks
5G awareness is under 50 percent of U.S. broadband households, blogged Parks Associates Wednesday, but interest is high when consumers are presented with potential benefits. Broader service availability and marketing will raise awareness over the next few years, said…
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analyst Craig Leslie, saying nearly half of broadband households surveyed expressed interest in replacing their fixed-line internet service with 5G home services. But most U.S. consumers won’t subscribe to 5G services soon due to limited availability, currently at 30 cities, with fewer than 50 projected by the end of 2020. To maximize the short reach of high-band frequencies, carriers are limiting coverage to specific locations in high-density urban areas and are likely to continue doing so in future launches, delaying arrival of residential services in larger metropolitan areas, said Leslie. Service costs could also be prohibitive, with carriers reserving 5G for higher-priced plans; Verizon, for instance, is adding a $10 fee, he said. Parks research shows “few consumers are willing to pay a premium in order to upgrade to 5G,” said the analyst. Hardware availability and pricing are also inhibitors to adoption; Apple isn't offering 5G phones this year, and those on the market are priced $200-$300 above equivalent non-5G models. Carriers are adopting their own standards, limiting devices to one carrier’s network, he said.