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Deloitte’s recent study into advanced wireless networks explores enterprise adoption rates of 5G, Wi-Fi 6, and other related technologies across nine countries. In this first of two blogs, we look at how Australian network decision makers are responding and the key considerations for enterprises as investment ramps up. To explore the considerations for operators and services providers read our second blog.
Networking executives have rapidly shifted their focus to advanced wireless
Networking executives already regard 5G and Wi-Fi 6 as the most critical wireless technologies for their business initiatives—and their importance will continue to grow. In Australia, our survey shows 38% of enterprises are deploying 5G in parts of their business or enterprise-wide, and 54% are preparing to use or roll out pilots of 5G in the next 12 months. Looking ahead to 2024, all Australian survey respondents expect to deploy 5G in their enterprise based on its ability to improve and differentiate customer experiences, open the door to new products or services and drive efficiencies in business operations. This rapid shift is in part accelerated by the need for enhanced mobility for employees and staff working remotely during the pandemic, with 59% citing COVID had become a catalyst to invest more in their wireless network. A shift that is bound to continue even in a COVID vaccinated world.
Investment is accelerating in wireless cellular
Respondents are looking to spend an average of USD $53M on wireless networking, not including spectrum over the next three years. We are expecting enterprises to spend slightly more on cellular (53%) versus Wi-Fi (47%) and relatively consistent amounts on devices (27%), hardware (29%), software (24%) and installation (20%). Compared to global peers, Australian respondents are investing more in wireless networking with 59% suggesting COVID-19 has caused them to increase this investment compared with 50% from global. The additional funding is being funnelled into network resilience (73%), addressing new use cases (47%), new digital solutions (47%) and increased security (40%).
Advanced wireless is foundational to innovation and transformation
Globally, 78% of respondents said advanced wireless networking will transform their companies within three years, with Australian organisations beating their global peers at 84%. Australian executives are also more optimistic on timelines with 39% of them suggesting next-generation wireless networking technologies (e.g. 5G and Wi-Fi 6) are likely to substantially transform their industries within one year. Leaders also stressed the impact these technologies will have on their businesses, with the top three motivations for adopting advanced wireless being to enhance innovation, improve operational efficiencies, and simplify interactions with customers. Network latency, data speed and coverage are considered as most important to achieving the benefits of advanced connectivity.
The bottom line - considerations for enterprise network decision makers
Key decision makers in enterprises must proactively evaluate and understand the performance of their current networks and their need for improved network technology to drive business outcomes. Fifty-nine per cent of respondents surveyed believed their current network infrastructure prevents them from addressing innovative use cases and 75% of them said that next-gen networks will be critically important for enhancing customer interactions in the next three years. This significant recognition is an important step forward for enterprises to assess their current wireless infrastructure and technology supporting their business.
Leading with use cases will help businesses focus on outcomes, drive viable solutions and justify their investments. Predictive maintenance, asset tracking and remote monitoring are the most relevant use cases organisations are targeting to leverage for machine-type communications. Security and fraud prevention, advanced customer experience and analytics were the highest-ranking customer networking use cases cited by our respondents.
Peter is the National Telecommunications leader and the Sydney leader of Monitor Deloitte in Deloitte’s Consulting practice. Peter has over 10 years’ experience in the development and execution of corporate/business unit strategy, digital strategy and transformation, channel strategy, strategic due diligence, customer experience/service design and operating model design for leading multinationals. Peter works at the links between strategy, operations, technology, creative design and innovation. His career experiences include successfully implementing complex transformations following a new strategy, as well as developing new businesses that disrupt traditional industries through business model innovation. He has delivered this type of work in US/Canada, Europe, Asia and Australia/New Zealand.
Amrit is a Principal in Deloitte Asia-Pacific Consulting, focused on the Australian TMT clients. He leads the TMT Networks CoE and is an active part of the firm’s telco engagements in the region. In his role as a Principal at Deloitte, he works with a diverse set of clients to evangelise new business models underpinned by technology, plan and execute digital transformation and develop business and technology strategy and roadmap in diverse areas of IoT, AI, Automation, Big Data, SDN/NFV and AR/VR. Prior to joining Deloitte, he was the Chief Architect for the Telstra account in Infosys Consulting, where he was responsible for spearheading Infosys' growth footprint in new and emerging technologies with Telstra CTO, Networks and IT. Throughout his 18 years in the industry, Amrit has worked on some of the most complex and innovative projects in the local TMT industry. He is part of the TM Forum and has presented at their annual flagship event in Nice, France in 2014 and 2016.