V2U Research

The introduction of 5G technology in Australia represents a huge step forward in the evolution of telecommunications. 5G promises lightning-fast speeds, low latency, and unprecedented connectivity, with the ability to transform how people and organizations engage with technology.

The debut of 5G, the 5th generation technology in mobile communication, in 2019 was a significant breakthrough. This technology has become the new global standard, replacing the 1G, 2G, 3G, and 4G networks. This technology has brought about a global revolution in communication technology, promising faster data speeds, improved response times, increased device density, increased reliability, and increased connectivity across individuals, businesses, machines, objects, and devices. It delivers higher multi-Gbps peak data speeds, ultra-low latency time, massive network capacity, and a steady, uniform user experience to a wide number of users.

Opportunities for Businesses

The rapid usage of 5G technology in Australia presents significant opportunities for various industries and sectors, but also presents notable challenges. However, stakeholders must balance the potential benefits against the potential negative effects. Technologies like the Internet of Things (IoT), artificial intelligence (AI), and augmented reality (AR) create various opportunities in numerous sectors such as healthcare, telecommunication, manufacturing, and agriculture with 5G’s unparalleled speed and low latency feature. For instance, IoT-powered precision farming could enhance agricultural efficiency by boosting crop yields and supporting management decisions through advanced sensors and analysis tools. Additionally, faster download speeds and seamless connectivity will enable users to enjoy high-definition streaming and reliable video conferencing, thereby boosting and enhancing Australia's digital economy. This will also revolutionize public safety and improve urban traffic management with better energy efficiency. Lastly, by leveraging 5G, Australian business houses can compete more efficiently in the global market, which will foster the nation’s economy and GDP growth. This will position Australia as a leader by adopting the cutting-edge technology.

Impact on Consumers

Every opportunity that offers substantial rewards carries a significant cost; ignoring these impacts could lead to a severe downturn for the entire nation. The increased connectivity of 5G heightens the risk of cyberattacks, making it easier for cybercriminals to launch sophisticated attacks, such as distributed denial of service (DDoS) attacks, potential data breaches, and ransomware.  These attacks can disrupt the normal traffic of a targeted server, service, or network by overwhelming its surrounding infrastructure with a surge of internet traffic. Such attacks also pose challenges in safeguarding personal information from misuse and unauthorized access, potentially leading to financial fraud and identity theft. Furthermore, as per the media reports, the estimated cost of the 5G network rollout, ranging from USD 3-8 billion per country, requires substantial investments in base stations and fiber optic networks. This could potentially impede rural and remote areas by delaying the development phase and deployment. The government, industries, and consumers must collaborate to maximize opportunities and mitigate risks, ensuring Australia remains competitive in the digital edge as a single nation.

Some major companies that deal in the telecommunications sector in Australia are:

• Telstra Group Limited (ASX: TLS), founded in 1901 and based in Melbourne, Australia, is the largest telecommunication company that builds and operates telecommunication networks and provides information services to businesses, governments, and individuals in Australia and internationally. Its current share price as of January 09, 2025 is trading at AUD 4.070 with a volume of 10.486Mn and at a market capitalization of AUD 46.91Bn. Revenue grew by 1.0% in FY24 compared to FY23 while EBITDA stood at AUD 7.528Bn and Net income recorded at AUD 1.788Bn in FY24. As per annual report, company stated that it has reached 89% 5G population coverage.
• TPG Telecom Limited (ASX: TPG), formerly Vodafone Hutchison Australia, is an Australian telecommunications company that provides telecommunication services to consumer, business, government, and wholesale customers in Australia. TPG has aggressively expanded its 5G network, focusing on delivering high-speed connectivity, lower latency, and enhanced capacity. The company leverages its spectrum assets and advanced infrastructure to ensure nationwide 5G coverage. TPG’s 5G network is a cornerstone of its strategy to deliver next-generation telecommunications solutions in Australia. By investing in cutting-edge technology and prioritizing customer-centric services, the company not only enhances connectivity but also contributes to the broader digital transformation of society. As TPG Telecom continues to innovate, it is poised to shape the future of communication in Australia and beyond. Currently, the stock is trading at $4.380 with a market capitalisation of $8.14 billion and annual an dividend yield of 4.10% as of January 09, 2025.
• 5G Networks Limited (ASX: 5GN), formerly known as Webcentral Limited, changed its name to 5G Networks Limited in December 2023. Headquartered in Melbourne, Australia, it is a digital services company that provides cloud-enabling solutions in Australia and New Zealand and offers various network-related services to businesses, enterprises, and wholesale and government customers. Its current share price, as of January 09, 2025, is trading at AUD 0.165 with a volume of 456.431K and a market capitalization of AUD 50.37Mn. Revenue from continuing operations increased by 8.3% to AUD 49.3Mn in FY24 compared to FY23. Net income took a significant turnaround from AUD 19.0Mn loss which was recorded in FY23 due to gain realized from the sale of the domain business. 5GN bought Security Shift Pty Ltd for AUD 4 million on January 16, 2024, with the goal of making its cybersecurity services better. 5G is set to transform industries, improve user experiences, and pave the way for innovations in the future. Its widespread adoption is expected to fuel the growth of smart technologies, enhance global connectivity, and accelerate the digital economy.

Looking Ahead

Overall, 5G connectivity represents a significant revolution for every business, government, and individual, with the potential to boost economic growth and contribute to the betterment of society and the nation. Despite the challenges, improved safety protocols should help to mitigate their consequences and adverse impacts.

Furthermore, Australia’s 5G revolution is more than just an upgrade in network technology—it’s a transformative shift that will redefine how consumers and businesses operate in a digital-first world. While challenges remain, the opportunities for innovation, efficiency, and connectivity far outweigh the hurdles. As the nation embraces this new era, staying informed and prepared will be key to maximizing the benefits of 5G.