Short-term pain before long-term gain for 5G
12 November 2019: Consumers are sceptical of the benefits of 5G as telcos struggle to build a strong business case for everyday Australians, Deloitte’s latest Mobile Consumer Survey has revealed.
Up to 83% of respondents said they were not prepared to pay the $15 premium operators are proposing for 5G, indicating that telcos need to better communicate the value of the upgrade to consumers.
Deloitte Partner and National Telecommunications lead, Peter Corbett, said 5G is a feature most people simply don’t understand.
“There was a clear business case for 4G – consumers wanted faster download speeds to stream content. For now consumers are more focused on a reliable network, rather than a faster one, posing a real challenge for the marketing and adoption of 5G,” Mr Corbett said.
“Consumers should prepare to be disappointed with 5G in the short-term, as the network will experience growing pains until it is fully established which will come with small-cell deployments and the auction of mmWave in early 2021.”
“We have also seen a drop in the hype consumers are experiencing with 5% fewer people looking to switch to 5G when it’s available or upon hearing good things in 2019 vs 2018. We are probably entering a period of disillusionment with the technology until it becomes clearer for consumers on how 5G will improve their day-to-day lives.”
Deloitte’s Mobile Consumer Survey, now in its sixth year in Australia, is a multi-country study of mobile phone users around the world. It examines how consumers interact with the device that completely dominates our lives, exploring current and future trends.
Mobiles are increasingly helping us manage our health, but they might also be hindering it.
“We’ve reached an ironic point with our digital devices – we’re using technology to help us detox from technology. Which in turn is making us more tethered to our devices,” Mr Corbett said.
“Up to one in four Australians are using their mobile to monitor their health and wellbeing, with an increasing number of mental health related apps targeting early detection and symptom management.
“However, with this improved help, we’ve also developed more reliance on our phone. The survey found that respondents who perceive they use their phones too much are four times more likely to not go to sleep when intended to, and five times more likely to feel anxious or stressed without their phone.
“And nearly 20% of respondents claim they experience physical pain as a result of overuse. But this year, 60% of people are trying to limit their mobile phone use, up from just 38% last year. When we drill down to specific actions taken to limit use, 28% are turning sound off, 27% are turning their phone off, 23% are turning their notifications off, and 14% are using do not disturb. Screen time trackers are being used by 12% of Australians with 76% of users finding these newer services useful.”
Purchasing power in your palm
Mobiles are the fastest growing device for ecommerce payments, with 24% of respondents now using their mobile as their preferred device for online purchases, overtaking desktop computers for the first time.
Deloitte Consulting Partner, Kate Huggins, said: “The 25-34 age group is leading the pack for adopting mobile as the preferred device for online purchases, with more women using it than men. The top 3 purchases from our devices are tickets for events, travel or holiday purchases and clothing.”
“But we’re not just buying online – mobile is becoming increasingly popular in-store with the rise of ‘tap and go’ payment options, fuelled by biometric functionality. 58% of respondents have used their mobile as an in-store payment method, up from 26% last year.”
Many Australians think our smartphones know too much about us, but few are restricting how much information they share with their device.
Deloitte’s 2019 Privacy Index indicated 65% of consumers cite trust as their number one consideration when granting an app permission to access personal information. However, only 13% of respondents did not share personal information, such as their address, photos and health metrics with companies online.
“While data privacy concerns continue to grow, we’re seeing devices continue to evolve their security features to zero-in on a person’s identity,” Ms Huggins said.
“Fingerprints and facial recognition methods have significantly increased. 12% of Australians are now using facial recognition to unlock their phones, and 40% use fingerprints. The use of fingerprints to authorise purchases and money transfers is also increasing, and is highest in the 18-24 and 25-34 age brackets, growing to 23% and 25% respectively over the last two years.
“As more of our personal lives are captured in our mobile phones, the more we care about keeping them private.”
Innovation and evolution – the sky is the limit
It’s official – we’ve reached peak smartphone. Consumers are holding onto their devices for longer, forcing manufacturers to continue raising the bar and turning to innovation in a bid to pique consumer interest.
Smartphone penetration has grown from 76% to 91% over the past six years, with Australians aged over 55 based in Western Australia and Queensland the last cohort to jump on board.
“Consumers are owning their smartphone around 3.5 years on average, up from three years in 2017. We’ve seen that premium manufacturers are still favoured, with Apple and Samsung holding 40% and 36% market share respectively. However, we may see a shift if Samsung, LG and Oppo’s early move on 5G-enabled handsets pays off,” Ms Huggins said.
“It’s clear that consumers are not seeing tangible benefits of new upgrades with around 50% of consumers on a smartphone that was launched in 2016 or earlier. We are perhaps seeing Australians doubling down on accessories, with the ownership of wearables like smart watches and fitness bands on the rise, up 43% over the past five years.”
About the survey
The Mobile Consumer Survey, now in its sixth year in Australia, is a multi-country study of mobile phone users around the world. The 2019 study comprises more than 44,150 responses across 28 countries. Australian findings are based on a nationally representative sample of over 2000 consumers aged 18 to 75, polled online during June 2019.