Mobile telecommunications density

IBISWorld estimates that there will be 34.7 million active mobile telecommunications services in 2024-25, inferring a density of 126.65% or 126.65 active mobile services for every 100 people in Australia. This density represents a decrease of 0.1 percentage points in mobile services density from the previous year. Saturation in the smartphone market has slowed the uptake of mobile phones and other mobile devices. Ongoing 5G expansion offset a steeper drop. Telstra and Optus have repurposed spectrum from shut-down 3G networks for 5G use, improving network performance and coverage, especially in urban areas. The growing appeal of fixed wireless broadband using 5G, especially in underserved or regional areas, also contributed to some demand, as new services were activated. These trends have driven the declining usage of USB modems, data cards and dongles, subduing mobile telecommunication density.

Overall, mobile telecommunications density has increased slightly over the past five years. The fall in density during 2020-21 is largely attributable to the cancellation of duplicate services, with households consolidating their communications and a drop in international visitors, which limited demand for new mobile telecommunications services. From 2021-22 onwards, mobile telecommunications density has recovered, driven by surges in net migration and the uptake of 5G networks. Consumers have had an increased appetite for constant connectivity, with more everyday functions being performed on the internet. The adoption of video streaming on mobile devices has led to a spike in data usage on mobile phones over the past five years, despite data plans rising alongside inflationary pressures. Additionally, many consumers have disconnected from their home phone lines and are exclusively using mobile phones, further supporting mobile density. Overall, IBISWorld forecasts mobile telecommunications density to climb by an average annual 0.2 percentage points over the five years through 2024-25.