Aust businesses face connectivity challenges, report shows

Ericsson has announced the findings from its annual report on the state of Australia’s state of enterprise connectivity, based on a survey conducted by Censuswide, which revealed that Australian medium and large businesses are grappling with connectivity challenges that are impeding innovation and growth. The report underscores the need for business investment in advanced network infrastructure to help drive productivity and position Australia as a world-class leader in innovation, sustainable business practices, and research and development.

With Australia’s investment in business research and development comparatively lower than that of peer countries, Australian firms are looking to enhance their initiatives to scale, innovate and boost productivity to compete on a global scale, according to the report. More than 87% of the 500 businesses surveyed agree that more secure, reliable and high-performing networks such as 5G would help position our nation as a world-class industrial and technology leader. More than 85% of businesses surveyed agree that a new era of connectivity will help unlock business innovation including AI and IoT, and that 5G connectivity is required to accelerate R&D initiatives within business. However, many Australian organisations also revealed that they lack the infrastructure to put these initiatives in place.

While some businesses are making strides in using 5G connectivity for innovation and growth — 44% of those surveyed are using 5G to enable AI/machine learning — many Australian businesses are yet to make progress in their 5G journey. The main barrier to Australian businesses for investing in 5G is the perceived cost of deployment/maintenance of 5G wireless network connectivity, with nearly 48% of respondents citing this. This figure was up from a year ago, where 30% of respondents cited cost as a barrier.

According to the report, 73% of Australian businesses surveyed feel more compelled to cut carbon emissions because of increased government reporting requirements; however, businesses surveyed acknowledged the critical role of reliable connectivity in achieving decarbonisation goals. 80% agree that high-performance, reliable connectivity would enable the connection of more IoT and smart devices to track progress and increase efficiency; 83% believe they could better track their sustainability goals with improved connectivity; and 75% note that poor connectivity in remote areas restricts their ability to accurately gather emissions data.

The survey explored the impact of satellite connectivity on regional operations and found that 30% of organisations use satellite connectivity alongside cellular connectivity. For organisations operating in regional or rural areas and not currently using satellite connectivity as part of their connectivity solutions, over 46% cite cost as the primary deterrent.

“Findings from Australia’s State of Enterprise Connectivity survey underscore the critical need for Australian businesses to address connectivity challenges to unlock innovation, enhance productivity and achieve sustainability goals,” said John Boladian, Vice President APAC, Enterprise Wireless Solutions at Ericsson.

“With significant interest in 5G and combined cellular satellite adoption, and the recognition of the potential benefits of these connectivity solutions, overcoming perceptions around cost and skills gaps will be essential in positioning Australia as a global leader in innovation.”

‘The State of Enterprise Connectivity | Australia 2025’ can be accessed here.

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