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.