Mobile internet connections

IBISWorld forecasts that the number of mobile internet connections will climb by 1.5% in 2024-25, to 30.52 million. Growth has been driven by rising population and household numbers, along with the ongoing rollout of 5G mobile networks. Operators are reallocating spectrum from decommissioned 3G networks to bolster 5G capacity, increasing adoption. However, expansion is beginning to slow because of saturation in the smartphone market.

Mobile internet services have grown in popularity over the past five years as mobile usage patterns have evolved alongside technology upgrades. The rollout of the National Broadband Network (NBN) was expected to reduce the need for mobile internet services inside the home, limiting demand for mobile internet services. However, the unreliability of NBN connections in some areas, particularly areas serviced by fixed wireless connections, has incentivised mobile internet substitution for light and moderate internet users, driving growth in mobile handset internet connections. Major providers are transitioning customers off older networks. For example, Vodafone removed all 3G services in December 2023, while Telstra, the largest mobile service provider in Australia, shut down its 3G network in June 2024, and Optus did the same in September 2024. The nationwide expansion of 5G services has played a key role in the climbing number of mobile internet connections. In 2021, only around half of the population had access to Telstra's 5G network. By mid-2023, this had risen to 85% and it is expected to be even higher by 2024-25. Consumers and businesses have upgraded devices to access faster speeds and lower latency. Overall, IBISWorld forecasts the number of mobile internet connections to grow at a compound annual rate of 2.1% over the five years through 2024-25.