Connectivity treated as critical national infrastructure alongside power and water

Optus says the shift reflects growing dependence on real-time digital systems across the economy

By LineZotpaper
Published
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A leading Australian telecommunications executive says connectivity has become as important as power or water for the nation's economy, as Infrastructure Australia formally recognises digital infrastructure alongside transport, energy and water in its national assessment. Chris Gilmore, senior director of enterprise business strategy at Optus, described the change as the biggest shift in recent years, as more of the economy depends on real-time digital operations from card payments to hospital records and logistics tracking.

More of Australia's economy now depends on digital systems operating in real time. A card payment at a cafe, a hospital retrieving a patient record, a logistics company tracking its fleet and someone paying for a cab at three in the morning all depend on those systems working when they are needed.

Behind almost every digital interaction is a telecommunications network moving data between people, businesses, devices and applications. As cloud services, digital payments, AI, automation and online customer experiences become embedded in the way organisations operate, connectivity is increasingly becoming a critical piece of national infrastructure.

Chris Gilmore, senior director, enterprise business strategy at Optus, says that distinction has faded as businesses have become more dependent on digital systems.

"Connectivity is seen as important as power or water. That's probably the biggest shift we've seen in recent years," Gilmore said.

"We've moved beyond a world where connectivity is just a utility. Today, the level of dependency is really determined by the importance of the services sitting on top of it."

Infrastructure Australia (IA) has put telecommunications alongside transport, energy, water and social infrastructure in its assessment of what the nation needs to support a changing economy. IA's 2026 Annual Budget Statement calls for "high-performing, resilient and technology-enabled" infrastructure across those sectors.

The shift comes as Australia grapples with weak productivity growth. The Productivity Commission says labour productivity was flat in the June quarter and fell 0.2 per cent over the year, leaving overall productivity barely 1 per cent above its 2015-19 average.

Businesses are also adopting AI rapidly. Australian Bureau of Statistics data released in June shows 12 per cent of businesses used AI in 2024-25, compared with 1 per cent in 2022-23. More than a third of businesses said information and communications technology was key to their operations.

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Analysis

Why This Matters

  • Formally recognising telecommunications as critical infrastructure could influence government investment priorities and regulatory approaches, affecting network reliability for all Australians.
  • Weak productivity growth and rapid AI adoption make resilient connectivity more economically important, as both trends depend on reliable digital infrastructure.
  • The designation signals that network outages or capacity constraints may carry consequences previously reserved for failures in power or water supply.

Background

Infrastructure Australia is the nation's independent infrastructure advisor, providing assessments and advice to all levels of government. Telecommunications has traditionally not been included alongside established categories like transport and energy. The inclusion reflects the growing role of digital networks in economic activity, from payments to healthcare to logistics. The shift also occurs against a backdrop of sluggish productivity, which policymakers are trying to address through technology adoption and infrastructure investment.

Key Perspectives

Optus: The telecommunications sector sees the recognition as validation of connectivity's central role in the economy. The comparison to essential utilities like power and water frames network reliability as a shared responsibility requiring public and private investment.

Infrastructure Australia: The agency's 2026 Annual Budget Statement explicitly includes telecommunications in its framework, calling for infrastructure across all sectors to be high-performing, resilient and technology-enabled.

Businesses and consumers: The growing dependency on real-time digital services means any network disruption affects a wider range of everyday activities, from payments to healthcare. The Productivity Commission's data on weak productivity growth suggests the economy cannot afford additional drag from unreliable infrastructure.

What to Watch

  • Whether the federal government's next budget allocates additional funding to telecommunications infrastructure in response to IA's assessment.
  • How quickly the remaining two-thirds of businesses that have not yet adopted AI or advanced ICT infrastructure begin to invest.
  • Whether network resilience standards for telecommunications are strengthened, similar to reliability requirements for energy and water utilities.

Sources

Zotpaper

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