A third of Australian households are interested in having their home internet services based on 5G technologies, according to a new Telsyte study.
The Telsyte Australian Mobile Services Market Study FY2018 said that figure was approximately three million households using 5G as either a primary or additional access technology as early as 2021.
The study found around 15 per cent of Australian households are currently mobile only.
Telsyte research shows 41 per cent of Australians aged 16 to 34 are interested in subscribing to 5G services for the home, given higher awareness and higher levels of living in rental accommodation.
Those who are currently using mobile broadband had the highest interest in 5G broadband services at 43 per cent. Telsyte suggests this could be an upsell opportunity to mobile-only customers.
5G services are expected to become available from next year with telcos Telstra and Optus to be the first to offer the new network.
Telsyte noted the potential demand of these services is still subject to the cost of 5G internet plans and contractual obligations carriers have with NBN.
Once 5G becomes available 37 per cent of Australian mobile users will see it as a priority when choosing their mobile service providers (MSP), especially if it is not expected to be available from every MSP.
Two thirds of Australians find 5G important when looking to switch providers.
Telsyte estimates 32 per cent of mobile SIOs will be 5G by the end of June 2023.
Nearly one third of smartphone owners are showing signs of holding off buying a new smartphone until 5G models become available.
5G and NBN
Telsyte predicts the short-term opportunity for carriers will be with dual-mode routers using both fixed line NBN connections and 5G providing a hybrid experience. This builds on the approach used by Telstra and Vodafone.
The report said there are a few reasons that will limit the amount of households that look into going mobile only, which includes limited spectrum, massively growing data usage and potentially high costs for consumers.
Alvin Lee, senior analyst at Telsyte said, “Fixed and wireless technologies such as 5G can work hand-in-hand.”
“Most consumers don’t want to think about what technologies are behind their Internet access, they just want it to be fast, good value and work seamlessly.”
For NBN, Telsyte believes there is an opportunity to update existing non-metro fixed wireless with 5G as well as using it as an option for upgrading the FTTN network in the future.