Strategy Analytics: AR and VR Driving 5G Service Differentiation for LG Uplus
BOSTON--(BUSINESS WIRE)--Sep 12, 2019--
LG Uplus has a 5G market share 9 percentage points higher than its overall retail market share in South Korea, enabled by a strong focus on AR and VR content. New research from Strategy Analytics concludes that, in a highly competitive market where differentiation on network quality and pricing is difficult, the operator has successfully used AR and VR content as both a compelling use case for B2C 5G services and as a source of content exclusivity driving customer acquisition.
The Strategy Analytics report “LG Uplus Looks for 5G Differentiation Through AR and VR Service Portfolio” is available to clients and registered guests here. The report discusses LG Uplus’s 5G network and service launch strategy and early service experience, identifying lessons for operators in global markets in how to develop a successful 5G B2C service portfolio.
Key report findings:
- Average 5G usage was 24 GBytes per subscription per month in Q2 2019 in South Korea, compared to 9.5GB on 4G and 0.5GB on 3G.
- AR and VR services account for 20 percent of traffic on the 5G network, with immersive video proving to be an important service to show users they are getting more than just faster downloads when they upgrade to 5G.
- LG Uplus is targeting nationwide 5G coverage by the end of 2022. For indoor coverage, in order to deliver a good AR and VR user experience, it estimates it will need 1.5x to 2x the number of 5G sites compared to 4G.
David MacQueen, Executive Director at Strategy Analytics, noted “LG Uplus is not unique in showcasing AR and VR content for 5G, but has shown a commitment to the medium that surpasses its competitors. The company has created some genuinely unique content through investment in a volumetric video capture studio, and has built a breadth of content allowing it to target multiple customer segments. LG Uplus has also taken a role bundling hardware to drive service uptake.”
Kevin Nolan, VP of UX Innovation Practice, added “We were impressed by the professional quality of the content and the range of experiences on offer. AR and VR content needs to be constantly refreshed and updated to keep subscribers coming back to the service, so sustaining momentum in its content production and acquisition will be central to generating longer term appeal and repeat consumption.”
Phil Kendall, Executive Director at Strategy Analytics, added “In markets like South Korea, where many 4G users will be happy with their service experience and not feel any need to upgrade for a better network experience, operators must develop a service-based marketing story around 5G. VR and AR content fits well with South Korean cultural and sporting preferences and will work well in other markets in those customer segments with strong affiliations to celebrities or social media stars.”
About Strategy Analytics
Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. For more information, visit us at www.strategyanalytics.com
View source version on businesswire.com:https://www.businesswire.com/news/home/20190912005675/en/
CONTACT: Phil Kendall: +44 1908 423620
firstname.lastname@example.orgKevin Nolan: +44 1908 423609
email@example.comDavid MacQueen: +44 1908 423623
KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS
INDUSTRY KEYWORD: SOFTWARE MOBILE/WIRELESS NETWORKS INTERNET HARDWARE DATA MANAGEMENT CONSUMER ELECTRONICS TECHNOLOGY AUDIO/VIDEO
SOURCE: Strategy Analytics
Copyright Business Wire 2019.
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