India Tops with 180 Million 5G Users and Leads in GenAI Adoption: Ericsson Report

India is witnessing a rapid digital evolution, with 5G adoption playing a pivotal role in reshaping the connectivity landscape. According to the 2024 Ericsson ConsumerLab Report titled “Elevating 5G with Differentiated Connectivity,” significant shifts in user expectations and technological advancements are propelling the country into a new era of connectivity. Surveying over 2,000 active 5G users from Tier 1-3 cities, the report highlights insights from 180 million urban consumers and underscores India’s readiness for cutting-edge technologies like GenAI (Generative Artificial Intelligence).

5G Adoption Rising in Tier 3 Cities

The report emphasizes the increasing 5G adoption in Tier 3 cities, where user satisfaction has doubled compared to previous years. Improved network availability and performance have led to satisfaction rates for 5G users jumping from 48% in 2023 to 57% in 2024. These improvements have brought India's connectivity standards on par with global benchmarks for fixed wireless access (FWA) and fiber internet. The growing penetration in less-developed regions marks a significant milestone for the country’s digital inclusion journey.

India’s Leadership in Generative AI Adoption

India is emerging as a global frontrunner in the adoption of generative AI technologies. The Ericsson report highlights that Indian users are twice as likely to engage with daily GenAI applications compared to their US counterparts. Approximately 21% of surveyed users actively explore four or more AI apps, ranging from AI-powered writing tools to personalized shopping assistants and advanced video or photo editing software. This trend signals India’s rising preference for intelligent and adaptable digital solutions.

AI-Powered Features Shape Smartphone Preferences

Consumer priorities are shifting as 32% of Indian smartphone users now value AI-powered features over traditional aspects like camera quality when selecting their next 5G-enabled device. This trend reflects an evolving demand for intelligent, responsive, and future-proof devices, driven by advancements in generative AI and integrated applications.

5G Connectivity Challenges at Live Events

The booming live events sector in India, from cricket matches to crowded tourist hotspots, highlights the need for reliable 5G connectivity in congested spaces. Around 64% of users reported issues with network quality during such events. Notably, one in six users is willing to pay 20% more on their monthly mobile bills for guaranteed connectivity in crowded settings. This willingness to invest in premium services opens up opportunities for telecom providers to introduce high-tier subscription models.

Impact of GenAI and Wearables on Mobile Traffic

The rise of generative AI applications and wearable devices is set to redefine mobile traffic patterns in India. Technologies like real-time 3D content creation and AI-enhanced video processing are projected to cause a surge in uplink traffic, necessitating more robust 5G infrastructure. To address these challenges, the report forecasts a shift toward semantic compression technology, enabling more efficient management of escalating data demands.

The Rise of Premium Connectivity Services

Indian consumers are increasingly prioritizing apps and devices that offer built-in performance guarantees. According to the report, approximately 40% of respondents are willing to reallocate 12% of their app spending to enhanced connectivity services. This willingness to pay for low-latency, high-reliability network tiers presents a lucrative opportunity for telecom operators to introduce premium offerings.

Conclusion: A Future Defined by Advanced Connectivity

As India embraces rapid digital transformation, the findings of Ericsson’s report showcase its readiness to lead in 5G and generative AI adoption. With increasing demand for reliable networks, AI-powered smartphones, and premium services, India is poised to shape the future of connectivity. The need for advanced infrastructure, innovative compression technologies, and premium connectivity options will be critical in meeting the expectations of a tech-savvy consumer base.