Global concert tours and major sporting events are showcasing the immense potential of 5G networks and their ability to handle unprecedented mobile data consumption. These large-scale events are setting new records for data usage, demonstrating the growing importance of robust mobile infrastructure.
“Network operators are under increasing pressure to meet subscribers’ expectations and deliver seamless customer experiences at concerts, where reliable connectivity is no longer a luxury but a necessity,” says Jasmeet Sethi, head of Ericsson ConsumerLab.
Ericsson ConsumerLab recently released a survey examining 5G experiences in Canada and around the world. It revealed a growing appetite for elevated connectivity beyond standard 5G performance and a strong willingness among customers to pay extra – a key insight of the report.
For telecoms and digital innovators across Canada, unlocking new revenue sources from 5G has long been a critical challenge, as substantial network investments raise important questions about profitability and sustainable growth potential.
“Operators need to figure out the business case for large-scale events to recoup their investment, especially as consumers and devices alike become more sophisticated,” Sethi notes.
A new revenue model
Ericsson suggests the answer may lie in “differentiated connectivity,” an emerging business model based on consumer research that could boost average revenue per user (ARPU) for carriers in Canada by three to nine per cent. This model would enable carriers to charge premium rates for guaranteed performance in specific high-demand scenarios – whether at concerts, sports venues, shopping malls or transportation hubs. It also allows app developers and ecosystem partners to generate income through enhanced in-app experiences and purchases.
This approach represents a significant shift from traditional volume-based pricing – paying a set price for a specific amount of data – toward more nuanced, quality-assured service tiers.
Imagine being at a concert or sporting event and struggling to share the experience live due to overloaded networks. While some companies are investing in the infrastructure of their arenas to ensure a fabulous customer experience, this may not be a realistic option for all venues and scenarios across the country. With an option to buy a performance boost for a few hours with elevated uplink speeds, fans could enjoy seamless livestreaming, sharing every moment in real time.
“A ‘boost’ does not exist in the Canadian market today,” says Sethi. “Currently, all data is being charged the same way, irrespective of if you are using that gigabyte at a concert, where you expect a great performance, versus me who is sitting at home and streaming social media.”
Sethi points to airlines as an example of how this type of differentiated service might work. While all airlines transport passengers from one place to another, they charge rates tailored to different levels of service. Business class is, of course, more than basic economy – it’s up to the consumer and their needs and preferences as to which option they choose.
The telecom sector can take a similar approach to maximize revenue potential and differentiate experiences: “We can draw inspiration from other sectors on how they think about driving premium value from commodity products.”
Consumer appetite
Canadian consumers appear receptive to the concept. According to the Ericsson ConsumerLab survey of 1,200 smartphone users, 40 per cent of Canadian mobile users are no longer willing to accept what’s called best-effort 5G performance, with nearly 23 per cent open to paying more for better network performance for essential tasks.
The global survey identified two key segments as potential early adopters in Canada: “performance strivers” (14 per cent) and “assurance seekers” (nine per cent). These segments represent users who desire and expect more from their 5G experience, particularly in high-traffic locations. The research also revealed that most consumers are willing to pay for services like reliable video calls and streaming as well as secure and resilient mobile payment and transactions.
Generative AI (GenAI) applications are also emerging as major growth drivers in this space. Already, a quarter of current GenAI app users expect fast, real-time responses. In Canada, almost one in six users expect guaranteed performance for AI-driven apps and are willing to pay for it.
At the same time, devices like the Meta Ray-Ban smart glasses are gaining traction among consumers, with more than two million pairs sold and projections that this will reach 10 million units per year. This rapid adoption signals growing interest in wearable AI. A key driver of demand is the Live AI capability, which allows users to send images, video and audio as real-time prompts, enabling instant information retrieval, contextual AI assistance and seamless content sharing. This shift will significantly increase uplink and downlink traffic, as users continuously stream and process media on the go, highlighting the need for elevated connectivity beyond best effort to ensure low-latency, high-quality AI interactions.
“There will be a lot of both downlink and uplink traffic that will start travelling on the networks. This is going to be a sea change from where we are today,” says Sethi.
Road map to the future
Examining the path forward, Ericsson’s research outlines a five-stage road map for service providers to evolve from volume-centric models to performance-based and platform business models. Most service providers currently operate in the early stages, offering unlimited data or fixed data plans without differentiation, with some venturing into traffic prioritization during congestion and speed tiering.
To monetize 5G effectively, however, the report suggests the need for flexible business approaches that can capture value through multiple channels. Stage three deploys targeted 5G standalone zones at high-traffic venues, while stage four expands to city-wide networks with quality-of-service packages tailored to specific user segments, such as professional gamers, livestreamers and knowledge workers. The final stage introduces a business-to-business-to-consumer platform that exposes network APIs for premium service offerings, essentially allowing external developers to create performance-based apps and payment features.
The research leaves Sethi optimistic about the future of digital innovation in Canada, but the industry must move forward sooner rather than later.
“We can’t leave this too late,” he says. “There needs to be more critical thinking around how to build these offerings and propositions and about how we can foster the developer ecosystem, which is very vibrant in the Canadian context.” Ericsson is working in partnership with the Canadian operators to foster innovation and bring differentiated connectivity to the market. To learn more about differentiated connectivity and its potential, download the full report here.
This editorial is independent of the journalists at BNN Bloomberg.
