The unlimited data debate plays a critical role in the success and challenges of 5G technology. In an increasingly connected world, mobile operators have offered unlimited 5G data plans for years. However, as 5G introduces advanced network capabilities and consumer expectations grow, there’s a pressing need to reconsider how mobile services are structured and sold. Marko Jovanovic from Ericsson suggests that innovative strategies in bundling and speed tiering could redefine the value of 5G data.
While unlimited plans are not particularly favored by mobile operators due to competitive pressures, they might inadvertently limit the full potential of 5G by focusing solely on quantity over quality. The “all-you-can-eat” pricing model, although simple for users to understand and compare, makes it challenging for operators to differentiate themselves in a saturated market. Evidence shows that quantity is no longer a key selling point for data, with many users having significant data leftovers at the end of each month, indicating a lack of need for bottomless plans.
Ericsson’s report highlights that 20% of smartphone users expect differentiated 5G connectivity offers or Quality of Service (QoS), willing to pay a premium for tailored experiences that ensure consistent and prioritized network performance for demanding applications like 4K video streaming, gaming, and augmented reality. This opens the door for personalized packages that go beyond unlimited plans to cater to a wide range of active users seeking enhanced experiences.
Adopting speed tiers as a differentiator is another emerging 5G packaging model, with an increase in operators adopting this strategy. Consumers associate speed with quality and are willing to pay more for higher speeds, especially when they face challenges with daily applications like video conferencing.
The shift towards a sustainable long-term model emphasizes the importance of autonomous 5G connectivity, differentiated performance, and technologies like network slicing and network APIs. These innovations can establish new business models and revenue sources, moving away from the one-size-fits-all approach to a more personalized and quality-focused mobile experience.