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AR and VR driving 5G service differentiation for LG Uplus

LG Uplus has a 5G market share nine 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. 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% 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.

 “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,” says David MacQueen, executive director at Strategy Analytics. “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.”

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