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Strategy Analytics: AR and VR Drive LG Uplus’s 5G Service Differentiation

LG Uplus’s 5G market share is nine percentage points higher than its overall retail market share in South Korea, thanks to its emphasis on AR and VR content. Strategy Analytics’ latest research report “LG Uplus Seeks 5G Differentiation with AR and VR Service Portfolio” concludes that in a competitive market where it is difficult to differentiate network quality and price, operators have successfully integrated AR and VR content as compelling use cases for B2C 5G services and as a unique content source to drive user purchases.

Key findings of the report include:

In Q2 2019, each 5G user in South Korea used an average of 24GB of data per month, compared with 9.5GB for 4G and only 0.5GB for 3G.

AR and VR services account for 20 percent of 5G network traffic, and immersive video is proving to be an important service — showing users that they get 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 provide high-quality AR and VR user experience, the number of 5G base stations is expected to require 1.5 to 2 times the number of 4G base stations.

David MacQueen, Executive Director at Strategy Analytics, said, “LG ​​Uplus is not unique in showcasing AR and VR content for 5G, but it has made a commitment to outperform its competitors. The company has created some real Unique content and built a wide range of content to target multiple customer segments. LG Uplus also takes bundled hardware to drive service adoption.”

Kevin Nolan, Research Vice President, User Experience Innovation at Strategy Analytics, added: “We were impressed with the professional quality of the content and the variety of experiences offered. AR and VR content requires constant updates to keep users coming back to the service, so content production and acquisitions Continued push will be the key to generating long-term appeal and repeat consumption.”

Phil Kendall, Executive Director at Strategy Analytics, added: “In a market like South Korea, where many 4G users are satisfied with their service experience and feel no need to upgrade to 5G for a better network experience, operators must develop 5G-related service-based marketing stories. VR and AR content is well suited to South Korea’s cultural and sporting preferences, and will perform well with user bases in other markets who have close ties to celebrities or social media stars.”

Strategy Analytics’ latest research report, “LG Uplus Seeks 5G Differentiation through AR and VR Service Portfolio” is available for free download. The report discusses LG Uplus’ 5G network and service launch strategy and early service experience, providing experience and lessons for operators in global markets on how to develop a successful 5G B2C service portfolio.