A report released by Deloitte Access Economics has outlined Australia’s anticipated $94 million GDP boost attributed to 5G technologies could be delayed due to business hesitancy and slow industry adoption.
The report, titled 5G Unleashed: Realising the potential of the next generation of mobile technology, was commissioned by the Australian Mobile Telecommunications Association (AMTA) to examine the economic impact of 5G-enabled technologies and innovations, and the policy and regulatory principles required to support accelerated adoption.
Australia is ranked as third in the world for mobile telecommunications, but risks falling back to 9th by 2025 due to lack of business readiness for change and a policy regime that needs to be recharged. 62 percent of businesses believe 5G will accelerate the growth of their business, with nearly 60 percent of Australian businesses that were surveyed for the report say they have no strategy to realise 5G. Just under 30 percent have no plans to implement the network.
5G is expected to increase Australia’s GDP by $67 billion by 2030, with an additional $27 billion potentially added to that total if adoption is accelerated, resulting in a 40 percent uplift in economic benefit over nine years. Deloitte Access Economics’ Partner John O’Mahony says the earlier Australian businesses adopt 5G technology, the better.
“With nearly 90 percent of businesses facing barriers to 5G adoption, Australia can only unlock the significant economic dividend by lifting business readiness and re-energising the policy regime and framework for 5G,” he says.
“The report also sets out 11 policy priorities for Government across three key areas – driving national adoption of 5G, infrastructure deployment and spectrum allocation – to support accelerated 5G adoption and rollout, and facilitate enhanced investment in 5G.”.
AMTA CEO Louise Hyland says Australia’s mobile telecommunications sector has invested billions in the 5G rollout over a number of years to establish itself as a global leader, giving Australian industries an unprecedented opportunity.
“We know there are significant economic benefits to be gained from the adoption of 5G across industry, including innovation, jobs, productivity, and global collaboration & competitiveness,” she says.
“Australia’s world-leading 5G rollout has seen three live networks established and operational 5G base stations at almost 4,000 sites at the end of 2021 with significantly more brought online since, while trials of 5G technology are being undertaken by industry and supported by the Australian Government’s 5G Innovation Initiative. But in reality, that opportunity only has value if the potential can be realised, and that’s why we are calling on industry and government to now play their role in driving an enhanced rate of 5G adoption.
“Accelerating Australia’s 5G rollout can unlock a huge economic and social dividend. Now is the time for governments and industry to invest in the applications enabled by 5G, to realise those economic and social benefits – particularly for businesses in industries less ready.
“AMTA and Australia’s mobile telecommunications industry is committed to engaging with industry and governments to play our part in smoothing the road for adoption and ensuring Australia remains a global leader in 5G while realising its full potential for the economy.”
To read the report in full, click here.
