Australian businesses face connectivity challenges: report

Ericsson has announced the findings from its annual ‘Australia’s State of Enterprise Connectivity Report’ — 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.

Industry leadership and innovation

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. 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 artificial intelligence or 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 and maintenance of 5G wireless network connectivity (48% of respondents). This figure was up from a year ago, where 30% of respondents cited cost as a barrier.

Connectivity for a sustainable future

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.

• Connectivity as a climate lever: 80% agree that high-performance, reliable connectivity is essential in tackling climate change by enabling the connection of more IoT and smart devices to track progress and increase efficiency.
• Tracking sustainability goals: 83% believe they could better track their sustainability goals with improved connectivity.
• Data gathering challenges: 75% note that poor connectivity in remote areas restricts their ability to accurately gather emissions data.

Connectivity challenges with remote and onsite work

The survey revealed that 59% of businesses agree that connectivity is an issue when people work from home, while improving office connectivity is a leading factor that 54% of Australian businesses surveyed consider when trying to encourage workers back into the office.

The Australian survey specifically 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 full Australia’s State of Enterprise Connectivity Report 2025 can be accessed here.

Image credit: iStock.com/Nastco