Australian 5G adoption slow as NBN keeps central role

Most Australian consumers are not actively chasing 5G services, despite high satisfaction levels among those who use them, new research from RMIT University has found.

The national survey indicates that the take-up of 5G is occurring gradually rather than through rapid shifts in consumer behaviour.

Researchers surveyed 2,112 people across Australia.

They found that about one third of respondents had not heard of 5G home internet.

The finding contrasts with early industry claims that 5G would quickly reshape the fixed broadband market and erode the position of the National Broadband Network.

The report describes a slow and steady move to 5G services.

Most users encounter 5G when they upgrade their mobile phones or plans.

In these cases, 5G arrives as a default feature of newer devices and bundles.

Many consumers treat 5G as an underlying network rather than a feature that drives their purchasing decisions.

Lead author Associate Professor James Meese said the shift was less dramatic than earlier predictions.

“What we're seeing is 5G by default, not 5G by demand,” said James Meese, Associate Professor, RMIT.

He said early marketing framed 5G as a major step change.

“It was sold as a tech revolution, but most people are not rushing to upgrade.

“Once they do, though, they are significantly more satisfied with their mobile service,” said Meese.

The survey found that Australians with higher incomes or postgraduate qualifications were more likely to use 5G.

Aside from these differences, 5G users and non-users were broadly similar in other characteristics.

Dissatisfaction with existing mobile services was a strong factor in the decision to move.

Among respondents unhappy with coverage, 36% said they were likely to upgrade to 5G in the next year.

Among those unhappy with data speed, 37% said they were likely to move to 5G over the same period.

The cost impact of upgrading was mixed.

About half of those who had moved to 5G reported similar bills to their previous plans.

One in four reported higher costs after the switch.

Consumers who had not yet adopted 5G showed little urgency.

Most of these respondents expected to move to 5G only when their current contracts or plans expired.

Some said they would wait until their existing handsets no longer met their needs.

The report examined the impact of 5G home internet on the NBN.

It found that some customers are replacing NBN services with 5G home internet.

However the overall level of churn from fixed-line services remains modest.

The data suggests that 5G home internet is growing from a small base rather than causing a rapid migration away from the NBN.

Meese said current patterns point to a stable role for fixed-line broadband.

“Even with 5G home internet on the rise, our data suggests the NBN will remain the backbone of Australia's fixed broadband for some time yet,” said Meese.

He said households are considering 5G home internet but are not abandoning existing services in large numbers.

“For most households, 5G home internet is something they may consider in future rather than a trigger to abandon their existing fixed-line connection today,” said Meese.

The research also looked at whether people are using 5G mobiles as a substitute for fixed broadband through hotspotting.

Only 6% of respondents said they used their mobile hotspot regularly.

Most respondents, 55%, used hotspotting occasionally.

They typically switched it on when their fixed-line service failed or slowed down.

Hotspotting played a support role for most households rather than a full replacement for home broadband.

These behaviours indicate that mobile services are backing up, rather than displacing, fixed-line networks for most users.

The study found that a general lack of awareness around 5G offerings is one factor in the slower than expected transition.

Many consumers did not distinguish between 4G and 5G in daily use.

Some respondents reported no clear understanding of the benefits that 5G might offer over existing services.

Others said their current connectivity was adequate and saw no need to change.

The researchers observed that this knowledge gap sits alongside subdued marketing around specific 5G uses for households.

Current uptake patterns suggest that changes in price, service design and new applications may shape future demand.

Meese said the research team would track whether emerging uses for 5G altered consumer behaviour.

He said the next phase would show whether the current incremental transition develops into the more disruptive shift that was initially forecast.