Boost service

differentiation
for 5G premium
experiences
Enabling new connectivity
offerings

ericsson.com/
5g-premium
 2 Ericsson | Boost service differentiation for 5G premium experiences

The path toward

new 5G experiences
The basic functionalities of Network Slicing and Time-Critical
Communication were initially launched by Ericsson in 2021, and
since then, a number of trials and tests with leading communications
service providers (CSPs) have been conducted to discover new use
cases. CSPs are moving from the exploration stage, and progressing
toward scaling and commercialization as the technology matures
and 5G Standalone (SA) takes off worldwide.

Current mobile networks are generally 5G is completely reshaping our professional
very reliable, but mostly offer a best-effort and personal lives by enabling new use
service. With the new capabilities we are cases – such as enhanced video and
launching, elevated service differentiation gaming, remote control and Augmented
for 5G premium experiences with Service Reality (AR). However, these emerging
Level Agreement (SLA) assurance can be use cases place higher demands on the
offered and monetized. network performance, and if the network
cannot keep up, the use cases will fail.
Over time, the diversity of performance
Meeting requirements requirements among use cases will only
of new use cases is grow more disparate, and the one-size-fits-
all approach to wireless connectivity will no
challenging for today’s longer suffice. It cannot meet the increasing
network range of demands over time and fully provide
every use case with the high reliability and
With its faster connectivity speeds, consistent low latency they require.
ultra-low latency and greater bandwidth, This has been echoed in a study on the
quality of the mobile user experience on
US mobile networks (published in Ericsson
Mobility Report June 2023). The study’s
key findings showed that as the uptake of
new services increases, the need to boost
mobile network performance to meet the
rising demands of new mobile experiences
and mobile users will grow.
As shown in the latest Ericsson
ConsumerLab study, ‘5G value: Turning
performance into loyalty’ (Oct 12, 2023),
5G network satisfaction drivers are
evolving beyond just the population
coverage factor, as long-time users begin
to prioritize video quality and consistent
upload speeds more and more.

5G users (more than 12 months)

Driver
5G coverage
at home
Share of users with hign satisfaction

Voice
experience
Extent of
5G coverage
outdoors
Video Mobile
5G coverage at other streaming data down-
indoor locations experience load speed

Video call Mobile data

experience upload speed

Mobile games
experience
Consistency
of 5G speeds

Base: 5G users in markets where 5G penetration is more than 40 percent and 5G

population coverage is more than 80 percent (US, Qatar, UAE, South Korea, Mainland
China, Taiwan) Source: Ericsson ConsumerLab, 5G value 2023 Potential driver

Relative importance in driving total satisfaction

Figure 1: Share of satisfied users and the importance of KPIs in driving total satisfaction
 3 Ericsson | Boost service differentiation for 5G premium experiences

Users are willing to pay Another key finding of the Ericsson
ConsumerLab study is that 5G consumers
a premium for differenti- are willing to pay a premium for
ated 5G experiences and differentiated connectivity. While 37
percent of smartphone users value
tailored connectivity increased data allowances in their 5G
plans, a significant 20 percent expect
packages differentiated 5G connectivity, seeking
elevated and consistent network
performance linked to demanding apps
or key locations. These individuals value
premium connectivity and are willing to
pay a premium of up to 11 percent for a
5G plan that ensures elevated network
performance.

12
Percentage premium users are willing to pay

Mobile revenue potental

of different monetization routes

11%
11

QoS-led offering

App bundles
10
Smartphone users are
Speed tiers
willing to pay an average
premium of 11 percent
for QoS-led offerings.
9

More data

Base: Smartphone users aged 15–69

Source: Ericsson ConsumerLab, 5G value 2023
8
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Share of users who prefer to include the features to justify the 5G premium

Figure 2: User preference for 5G plan features and willingness to pay extra for 5G premium
4 Ericsson | Boost service differentiation for 5G premium experiences

CSPs can evolve and
extend the value of
connectivity offerings
A CSP’s main business is to provide
customers with services for mobile data
connectivity. The customer value of these
connectivity offerings could be evolved
and extended, potentially translating into
profitable revenue growth.
5G has created new value with service
offerings of larger data buckets, higher
speeds, and improved user experiences.
The better performance of 5G could be
used to create a wider range of differen-
tiated connectivity offerings, each meeting
a specific customer need. By differentiation
and personalization, CSPs can both create
and capture the additional value of 5G
connectivity.
Experience-based connectivity
offers premium service adapted to the
performance requirements of certain
applications and users. To users, this
will ensure smooth and enhanced expe-
rience when running high-demanding
applications, such as HD video streaming,
live broadcasting, cloud gaming in the
near term and XR gaming in the long run.
For CSPs, experience-based connectivity
provides potential for personalization,
value creation and ARPU uplift.
As premium performance is an additional
value parameter to capture, not typically
part of the baseline data connectivity, it
can simply be added on top of existing
offerings.
The premium performance also
address a new customer segment for
CSP, selling premium connectivity APIs
to application developers or end-users to
deliver enhanced app experience to their
customers.

B2C/B2B B2B2X

Offer premium subscriptions Sell premium connectivity APIs to a market

to end-users place for global application providers

Upsell experience-based connectivity (5G SA)

Premium offering with committed performance levels (latency, reliability and throughput)

Baseline connectivity (4G/5G)

Data-centric offering: data bucket plans, service bundles, etc.

Figure 3: Extend value of connectivity with differentiated offerings

5G Standalone (SA) is a
key enabler for offering
experience-based
connectivity
It offers undoubtedly higher network
efficiency, better spectrum utilization, more
reliable connectivity and lower latency than
other technologies. 5G SA will be key in
terms of unlocking the full potential of 5G
by enabling superior performance, service
differentiation, and a wide variety of new
ways of doing business. Experience-based
connectivity powered by 5G SA provides
yet more opportunities for personalization,
value creation and ARPU uplift.
5 Ericsson | Boost service differentiation for 5G premium experiences

A software toolkit for

5G premium experiences

Ericsson is introducing a new software toolkit with advanced

RAN and Core capabilities that will allow communications
service providers (CSPs) to capture growth opportunities
for new service offering with differentiated connectivity for
premium experiences, delivered at scale and on the move.

The software toolkit is designed for
experience-based connectivity with
high requirements on reliability and
latency for use cases such as lag-free
mobile cloud gaming, real-time media for
video conferencing and live broadcasting,
remote-controlled machines and vehicles,
and XR applications.
The software toolkit offers the following
key capabilities:
• Enhanced Massive MIMO software
algorithms for channel-aware pairing and
optimal beamforming selection based on
user velocity. This further boosts capacity
in mid-band deployments with10%
incremental user throughput gain in high
load and allows for smoother introduction
of new services with high reliability and
low latency.
• RAN Slicing advancements with Intent-
based Automation for Automated Radio
Resource Partitioning and Rate and Delay
Control Scheduling for efficient Service
Level Agreement (SLA) fulfillment with
target delivery met on a 1ms basis.
• Improved consistent low latency
capabilities of Time-Critical
Communication, with Uplink Configured
Grant and L4S (Low latency, Low loss,
Scalable Throughput) for superior
quality of experience even in congested
networks and under poor radio conditions
with up to 90ms latency improvement in
high load scenario.
• Data boost upsell in 5G Core which
allows users to purchase a boost on top
of their existing subscription through
notification to the device as well as new
capabilities to enable and monetize L4S
for selected subscription packages.

5G SA for business growth and expansion through differentiated service offerings

Massive MIMO RAN Slicing advancements Time-Critical Communication

innovations Improved automation and scheduling for Improved consistent low latency capabilities,
efficient SLA fulfillment enhancing real-time media experience
Further capacity gain for TDD
midband deployments, allowing new
Key features: Key features:
service introduction with optimized
real-life performance • Automated Radio Resource Partitioning • Uplink Configured Grant
(Intent-based Automation) • RAN assisted rate recommendation (L4S)
Key features: • Rate and Delay Control Scheduling
• Velocity-based beamforming
mode adaptation
• Channel-aware MU-MIMO
pairing 5G Core
To secure that premium experience is delivered according to subscriptions and business rules

Key features:
• Data boost upsell
• Application guidance for URSP
• L4S support

Figure 4: A software toolkit for experience-based connectivity

6 Ericsson | Boost service differentiation for 5G premium experiences

Ready for a journey

with Ericsson?
In the lead to introduce experience-based connectivity
offerings. Capture consumer and enterprise growth
opportunities. Turn performance into loyalty, value
and growth.

Ericsson has undisputed 5G and 5G SA
leadership. As of September 2023, we have
powered 26 5G SA networks worldwide.
Ericsson is a pioneer in 5G Slicing and Time-
Critical Communication (TCC). Ericsson
launched basic slicing functionalities such
as Dynamic Radio Resource Partitioning
and Quality of Service (QoS) management
framework in 2021, and since then, a
number of leading CSPs have tested slicing
in their live 5G SA networks to explore
new use cases with high requirements on
latency, reliability and throughput. Those 5G ecosystem, bringing together actors
CSPs include Singtel, Telstra, FarEastTone, from the telecom industry and beyond
Vodafone UK, Deutsche Telekom, T-Mobile, to push innovation and develop new
who have demonstrated the importance of use cases. Through Ericsson D-15 Labs,
5G SA and network slicing to deliver new 5G Ericsson Device Hub, Ericsson Startup 5G
use cases and experiences for consumers and the Enterprise Ecosystem, the pace of
and businesses – with higher scalability 5G innovations can be accelerated.
and enhanced QoS management. Slicing
technology is enabling new business
models across all verticals and creating new
revenue opportunities for CSPs.
Ericsson is playing an active role in the

Superior Differentiated Programable

performance performance for network
Increase 5G value for MBB services new and advanced performance
with performance as Prepare your network for
better experiences
+ use cases + on-demand
Upsell experience-based Sell APIs to developers
differentiator subscriptions to deliver enhanced app
experence

5G SA, Massive MIMO Slicing, URSP, TCC Network APIs

Figure 5: CSP’s journey with experience-based connectivity

About Ericsson
Ericsson
SE-164 80 Stockholm, Sweden
Telephone +46 10 719 0000
www.ericsson.com
Ericsson enables communications service providers
and enterprises to capture the full value of connectivity.
The company’s portfolio spans the following business
areas: Networks, Cloud Software and Services, Enterprise
Wireless Solutions, Global Communications Platform,
and Technologies and New Businesses. It is designed to
help our customers go digital, increase efficiency and find
new revenue streams. Ericsson’s innovation investments
have delivered the benefits of mobility and mobile
broadband to billions of people globally. Ericsson stock is
listed on Nasdaq Stockholm and on Nasdaq New York.
www.ericsson.com
The content of this document is subject 2/0341-FGD101489
to revision without notice due to con- © Ericsson AB 2023
tinued progress in methodology, design
and manufacturing. Ericsson shall have
no liability for any error or damage of
any kind resulting from the use of this
document