The hidden costs of not investing in 5G: Breaking down misperceptions for Australian IT buyers

As Australian organisations confront fast-evolving digital demands, one key technology continues to dominate boardroom discussions: 5G connectivity. Recognised universally for its promise of speed, reliability, and scalability, 5G offers the infrastructure backbone needed to enable emerging technologies such as AI, automation, and IoT. Yet many Australian businesses remain hesitant, citing cost as a barrier — a perception that may be jeopardising their long-term competitiveness and financial health.

The cost myth: Is 5G really too expensive?

Recent survey data of Australian businesses reveals a persistent unease about the perceived costs associated with deploying and maintaining 5G wireless networks. Nearly 48% of businesses surveyed identified cost as their primary barrier to adoption — a figure that has, worryingly, increased from 30% a year ago.

This rising concern seems paradoxical, as the world becomes more digital and many use cases for 5G, such as industrial IoT, process automation, and real-time analytics, move from pilot projects into core business operations. Nonetheless, IT decision makers often view 5G requiring a significant outlay: from upgrading hardware to integrating new systems, costs — even before accounting for training or ongoing maintenance — can appear daunting.

However, context from the same survey uncovers the true costs of avoiding or delaying 5G investment — a side of the ledger often overlooked but far more damaging in the long run.

Paying the price for the status quo

The survey highlights that unreliable connectivity is exacting a tangible toll on Australian businesses today:

• Higher operational costs: 49% of respondents noted a direct rise in operational expenses as a result of network unreliability. This includes not just obvious impacts, like lost productivity during outages, but hidden costs such as ad-hoc repair fees, temporary workarounds, and inefficiencies arising from disjointed connectivity.
• Operational inefficiencies: 48% saw their business processes slowed or compromised, diminishing their ability to innovate, respond to market demands, or scale quickly.
• Increased waste: Over a third (34%) experienced greater levels of waste — whether excess inventory due to lost data, or unscheduled downtime on production lines — leading to environmental, financial, and reputational impacts.
• Reputational damage and financial loss: 32% reported a direct hit to their reputation or revenue because of frequent connectivity issues, in some cases due to missed service-level commitments or visible disruptions to customer experiences.
   

Compounded over time, these costs often exceed the upfront and ongoing expenses associated with a 5G rollout. By not investing, businesses risk falling further behind industry peers leveraging reliable, high-performance networks as a driver of innovation and operational efficiency.

Beyond cost: The barriers to adoption

While cost is the leading deterrent, it does not act in isolation. Over 40% of businesses also cite a lack of internal skills as a key challenge, while 39% identify hardware complexity as a leading barrier. Integration issues — blending new 5G capabilities with existing IT and OT systems — add another layer of inertia.

Security concerns were also highlighted by more than 40% of respondents, given that even though connected devices offer many benefits they also open up networks to increased cyber risks.

Yet these obstacles are not insurmountable. Managed 5G WAN (wide area network) solutions, for example, are emerging as a crucial ‘fast track’ for organisations lacking in-house expertise. These services handle configuration, automate updates, and reduce administrative burdens, lowering the cost and complexity of deployment. For many, the strategic alternative is not ‘build or bust’, but rather leveraging partnerships to achieve results.

From a security perspective, while 5G can provide a larger attack surface, 5G networks are inherently more secure. Ericsson enterprise 5G connectivity solutions include a multi-layered security framework that addresses threats across the entire network lifecycle. This includes end-to-end encryption, robust authentication mechanisms, and secure software development practices to protect against vulnerabilities. Ericsson leverages advanced AI and machine learning to monitor network traffic in real-time, enabling proactive threat detection and rapid incident response.

The opportunity cost of hesitation

Perhaps most stark is the finding that only 34% of surveyed businesses believe they will have the network infrastructure needed to drive performance and growth in the coming year, with slightly more (38%) poised to unlock the full promise of AI and automation. Without the necessary foundations provided by 5G connectivity, many Australian organisations may stall their transition to digital-first business models, missing out on gains in efficiency, agility, and competitive differentiation.

Nearly 87% of businesses agree: More reliable, secure networks like 5G are vital for Australia to stake its claim as a global industrial and technological leader. And over 85% see a direct link between next-generation connectivity and their ability to unlock innovation in areas such as IoT, AI, and R&D.

Conclusion: Rethinking the cost narrative

For IT buyers and business leaders, the pressing question is not whether they can afford to invest in 5G, but whether they can afford not to. The numbers are clear: operational disruptions, inefficiencies, and lost business opportunity represent a silent, ongoing cost — one that will only grow as competitors adopt advanced networking and digital capabilities.

The misperception that 5G is prohibitively expensive ignores the strategic investment case: 5G is not just a technology upgrade, but a platform for innovation, resilience, and future growth. Inaction risks not only financial loss, but the reputation and viability of your business in an increasingly digital world.

Image credit: iStock.com/Just_Super