An overwhelming majority of tech decision makers across Europe (88%) believe that outdated connectivity is restricting the potential benefits of technologies like AI, indicating that a new era is required.

This is according to research from Ericsson, which surveyed 2,500 technology decision makers across the UK, France, Germany, The Netherlands, and Italy, examining how the connectivity landscape has transformed over the last year and how enterprises’ attituded towards cellular connectivity have evolved.

According to the survey, many enterprises believe that 5G connectivity and next-generation technologies, such as AI, have a symbiotic relationship.

For instance, 85% of respondents state that AI helps improve network performance by automating analysis and reducing manual workload. Meanwhile, 87% believe that 5G is necessary to accelerate R&D initiatives within their organisations, and 54% strongly agree that more secure and high-performing networks would help position their nation as a world-class industrial and technology leader.

According to the research, businesses that want to see a full return on investments in advanced technology must ensure they are upgrading their connectivity infrastructure as well.

Poor Connectivity

According to Ericsson, Europe trails global leaders in the deployment and adoption of transformational 5G due to a regulatory environment that ‘impedes profitable investment in advanced connectivity.’

While in its latest report on OIR implementation, the European Commission made clear that the regulation should not be considered an obstacle to differentiated connectivity, the results of the survey reflect that negative perceptions have to be addressed as 35% of enterprises believe that net neutrality rules limit telecom providers’ ability to offer specialised connectivity services.

Likewise, 38% believe upgrading their network would be too complex, which is hindering the adoption of 5G solutions.

The result of this poor connectivity is not just holding businesses back; it is hurting their bottom line. Just over a quarter of respondents (28%) link unreliable connectivity directly to a loss of earnings, 31% believe it has led to an increase in waste, and 46% state it leads to higher operational costs.

It also affects enterprises’ sustainability initiatives, with 71% stating poor connectivity in remote areas restricts their ability to accurately gather emissions data, a crucial task if organisations want to achieve their net zero goals by 2030 and reduce their effect on the environment.

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Connectivity Is the New Utility in the UK

The survey showed that UK business leaders are aware of how critical 5G cellular connectivity has become to their long-term success, with 62% of executives stating it gives them more control when scaling their connectivity infrastructure up and down as needed and 61% stating it gives more control over critical operations when compared to fiber or even 4G networks.

As a result, 69% state it is the best investment they can make in the next 12 months, ahead of robotics and automation (45%) and even AI (42%).

The UK businesses that were surveyed also highlighted the utilities sector as one which could benefit the most from 5G. Du to its low latency and high bandwidth, 5G can support the demands of modern technology and IoT devices, leading to better management and energy infrastructure (86%) and water infrastructure (82%).

Finally, as the NHS continues to battle staff shortages and long wait times, 88% believe 5G is important to help the rollout of advanced technology within hospitals, which can help address the crisis.

“It is clear from this report business leaders are increasingly aware of the benefits and importance of having robust and future-proof connectivity infrastructure,” Paul McHugh, head of sales EMEA at Ericsson Enterprise Wireless Solutions, said.

“However, numerous barriers persist, ranging from complex regulatory and telecom environments to a lack of skills within enterprises.

“Overcoming these challenges is crucial if businesses want to fully leverage the benefits of next-generation technology. I urge companies unsure where they should start their journey to work with channel and connectivity providers to help plug skills gaps and open the door to a new era of connectivity.”