The AI Revolution's Hidden Network Demands: Why Your Netflix Might Have to Compete with ChatGPT
Phillip Alcock
Director of Innovation @ Alayna | Founder AIxPBL | Co-Founder PBL Future Labs | | Learning and Curriculum Design | AIxEd Developer | Published Author
Picture this: You're in the middle of asking ChatGPT to help you write the perfect wedding toast when suddenly, it starts responding with all the speed and grace of a sloth swimming through honey. Meanwhile, your roommate is binge-watching the latest season of "Squid Game 2" in 8K without a hint of buffering. Welcome to the peculiar world of 2024, where artificial intelligence and streaming services are engaged in an invisible tug-of-war over your internet bandwidth.
A fascinating new report from Ericsson ConsumerLab, released on November 13, 2024, has revealed something that might make you spill your morning coffee: we're witnessing the dawn of "bandwidth class warfare." But before you picture tiny AI robots protesting with "Equal Rights for Algorithms" signs, let's dive into what this actually means for your daily digital life.
The report, rather dryly titled "Rising use of Generative AI Apps boosts consumer interest in differentiated connectivity" (someone in marketing clearly skipped their creative writing class), tells us something remarkable: people are willing to pay extra to ensure their AI applications run smoothly.
In this article, we'll explore:
So grab your preferred beverage, tell your AI assistant to hold your calls, and let's unpack this brave new world where even our artificial friends might need premium memberships.
The Great Digital Traffic Jam
The Setup: When Everyone Wants to Be in the Fast Lane
Remember the early days of the internet when downloading a single song took long enough to make a sandwich, eat it, and question all your life choices? We thought those days were behind us. But here's the plot twist: our increasing reliance on AI applications is creating a new kind of digital congestion, and this time, it's not just about downloading the latest Taylor Swift album.
The Ericsson report drops a bombshell: the number of smartphone users regularly engaging with GenAI apps is expected to multiply by 2.5 times in the next five years. To put that in perspective, it's like suddenly having two and a half times more cars on a highway that wasn't exactly empty to begin with. And these aren't your grandfather's internet applications – they're data-hungry AI beings that make traditional apps look like digital dieters.
The Deep Dive: Numbers That Make Your Router Sweat
Let's break down some mind-bending statistics from the report:
(And here's a fun fact they didn't include in the report: if AI applications were cookies, we'd be looking at a digital Cookie Monster situation of epic proportions.)
The Rise of the "Assurance Seekers"
The Setup: Meet Your New Digital Tribe
Remember how your friend Dave insists on buying premium petrol for his car even though he drives a Toyota Corolla? Well, meet the "assurance seekers" – the Dave's of the digital world. According to Ericsson's research, these connectivity connoisseurs make up about 20% of users, and they're not just picky – they're changing the way we think about internet service.
(Editor's Note: We considered calling them "bandwidth botherers" but our marketing team advised against it.)
The Deep Dive: Why These Digital VIPs Matter
Let's break down what makes these assurance seekers tick:
Think of them as the people who buy first-class train tickets not for the extra legroom, but for the guaranteed seat during rush hour. They're not showing off – they just really, really need to get to that meeting on time.
The Real-World Connection: When Premium Really Matters
Picture this scenario: You're a remote surgeon performing a delicate operation using AI-assisted tools. Would you want your connection to compete with your neighbor's Netflix marathon? Probably not. Or perhaps you're a financial trader using AI algorithms to make split-second decisions. A few milliseconds of lag could mean the difference between profit and loss.
The Global Bandwidth Divide
The Setup: A Tale of Two Internets
Here's something interesting: while you might expect the most technologically advanced nations to lead the charge in demanding premium connectivity, the data tells a different story. Markets like India, Thailand, and Saudi Arabia are showing twice the interest of countries like France and Spain.
The Deep Dive: Understanding the Disparity
Let's break down this fascinating geographical divide:
High-Interest Markets:
Lower-Interest Markets:
What's driving this difference? It's not just about wealth or technological advancement. These emerging markets are often:
The Real-World Connection: Why Geography Matters
Imagine you're in Bangkok, running a startup that uses AI for real-time translation services. Your baseline internet might be less reliable than in Paris, making guaranteed connectivity not just a luxury, but a business necessity.
The Five-Stage Journey for CSPs
The Setup: From Basic to Brilliant
Communication Service Providers (CSPs) are about to embark on what looks like a corporate version of a hero's journey. Ericsson outlines a five-stage transformation that would make Joseph Campbell proud.
The Deep Dive: The Evolution of Service
Let's break down this journey:
The Basic Years
The Awakening
Recognition of different user needs
Basic service differentiation
The "hang on, people might pay more for better service" moment
The Performance Era
Introduction of performance-driven models
Tailored subscriptions
When CSPs discovered they could be more like airlines with their pricing
The Platform Revolution
API-driven services
Developer integration
The "let's make this a platform" phase (because everything needs to be a platform these days)
The Future State
Fully customised experiences
AI-driven optimization
The "now we're cooking with gas" phase
The Real-World Connection: What This Means for You
Imagine walking into a digital buffet where instead of paying one price for all-you-can-eat, you can:
The Revenue Revolution
The Setup: Show Me the Money
Here's where things get interesting for the folks in accounting. Ericsson's research suggests that this shift could drive a 5-12% uplift in 5G average revenue per user. That's the kind of number that makes telecommunications executives spill their expensive coffee in excitement.
The Deep Dive: Breaking Down the Numbers
Let's look at what's driving this potential revenue boost:
And here's the kicker: one in three 5G smartphone users are willing to reallocate 10% of their current mobile app spend to purchase apps with in-built elevated connectivity.
The Real-World Connection: Your Future Bills
What might this look like in practice? Imagine your monthly mobile bill broken down like this:
Basic Package:
Premium Add-ons:
Conclusion: The Future Is Hungry for Bandwidth
As we wrap up this journey through the digital landscape of 2024, one thing becomes crystal clear: the future of connectivity isn't just about speed – it's about smart speed. Like a well-orchestrated traffic system, our digital infrastructure is evolving to handle different types of data traffic with different levels of priority.
The rise of GenAI applications isn't just another tech trend; it's reshaping how we think about and value our internet connections. And while some might balk at the idea of paying premium prices for guaranteed AI performance, remember: we once thought paying for bottled water was crazy, and look where we are now.
As we stand at this digital crossroads, one question remains: In this new world of differentiated connectivity, will your AI assistant need its own premium subscription? Only time – and your wallet – will tell.
Editor's Note: No AI assistants were harmed in the writing of this article, though several did complain about bandwidth throttling during fact-checking.
Phil
Tirisano Institute (NPO & PBO), E-Learning, teaching Electronics, Coding and Robotics, Digital Inclusion, AI Literacy, Universal Service and Access
1 周I would like to know why the text prompt, text response in my LLM interactions are bandwidth intensive. Some AI apps clearly are bandwidth intensive such as video generation. AI apps that process PDF docs probably upload the document to a cloud storsge device. One such app pernits one PDFs of up to 50Mbytes to be processed with the free version