IT and telecommunications adoption

The IT and telecommunications adoption index is expected to rise by 1.0% in 2025-26, to reach 100.0 points. The number of internet subscribers is projected to rise as the population grows and the NBN upgrades near 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. However, growth is expected to be below the average seen from 2020-21 to 2025-26, as early signs of maturation appear.

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.

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 and ecommerce's share of retail sales 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. In late 2025, 12.6 million Australian homes and business were connected, up from 8.2 million in 2021, lifting household internet access. 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. Mobile telecommunications infrastructure also underwent developments, with 5G networks reaching a greater share of the population. The Mobile Blackspot Program and investments in fixed wireless and satellite upgrades improved infrastructure availability and connectivity to regional and remote Australians. Overall, the IT and telecommunications index is forecast to rise by a compound annual rate of 1.2% over the five years through 2025-26.