Business Environment Profiles - Australia
Published: 19 September 2024
IT and telecommunications adoption
100 Index
1.3 %
The IT and telecommunications adoption index measures the ability to make use of new and existing technology. This includes measuring mobile telecommunications density; the proportion of households with internet access; the proportion of businesses with internet access; and the proportion of businesses with a web presence. The data for this report is gathered from the ABS and presented in financial years with a base year of 2024-25.
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The IT and telecommunications adoption index is expected to rise by 2.7% in 2024-25, to reach 100.0 points. The number of internet subscribers is projected to rise as the population grows and the NBN rollout nears completion. The share of businesses with a web presence is also anticipated to expand as demand from online shopping increases. The Federal Government's Mobile Blackspot Program is set to bolster the mobile telecommunications density, supporting growth in the IT and telecommunications adoption index during the year.
Over the past five years, internet access has become increasingly necessary for consumers to engage in ecommerce, social media and other services that exhibit online distribution channels. Changing work requirements and the increasing availability of services from both private and public sector entities have also driven strong demand for internet connectivity. Consumers have also developed an increased appetite for constant connectivity, driving demand for mobile devices with internet and web browsing capabilities over the past five years. However, a reduction in international arrivals and increased consolidation of internet services among households saw the number of internet subscribers decline and mobile telecommunications density fall in 2019-20. Consequently, the IT and telecommunications density index barely edged up during that year, driven by a greater web presence among businesses.
The COVID-19 pandemic accelerated trends in business IT and telecommunications adoption. Businesses increasingly developed their remote working capabilities, while the proportion of businesses with a web presence has risen strongly. The use of video-conferencing and collaboration software has substantially increased, as businesses increasingly offer home working as standard practice. Demand for cloud storage and cloud-based software has also risen, as businesses move to increase their off-site capabilities.
Strong growth in online shopping over the past five years has increasingly incentivised businesses to establish a web presence to better market their brand and remain competitive against rival businesses that already have online distribution channels. More businesses and households have been able to boost their online capabilities with the rollout of the NBN as well as private networks like Starlink's satellite internet service. Larger companies such as commercial banks, which have extensive online operations and house a lot of sensitive data, have increasingly adopted cloud computing models to improve efficiency and concentrate the use of their resources for core functions. Overall, the IT and telecommunications index is forecast to rise by a compound annual rate of 1.3% over the five years through 2024-25.
The IT and telecommunications adoption index is expected to rise by 1.8% in 2025-26, to reach 101...
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