$150 Million in Annual Productivity Gains from Accelerated Digital Infrastructure Approvals
Australia could unlock more than $150 million in annual productivity gains by reducing red tape and accelerating planning approvals for digital infrastructure, according to the Australian Telecommunications Alliance (ATA).
Appearing before the Senate Select Committee on Productivity today, ATA CEO Luke Coleman said Australia’s ability to leverage the full productivity benefits of AI depended on the accelerated deployment of communications networks.
Mr Coleman and ATA Head of Spectrum and Infrastructure Chris Coughlan said practical reforms to reduce unnecessary regulatory barriers would help accelerate investment in high-capacity fibre networks and mobile towers, supporting the uptake of AI.
They cited a soon-to-be-released report by Deloitte Access Economics on the Future of Mobile, which found two-thirds of Australians already use AI applications on mobile, with 59 per cent of this cohort saying it saved them one and three-quarter hours per week – bolstering their productivity.
Evidence modelled by Deloitte shows a 10 per cent improvement in regulatory practice could unlock around $430 million in additional telecommunications investment every year, helping to deliver up to 200 additional mobile sites and improving connectivity to 250,000 Australians.
In contrast, the ATA pointed to planning delays hampering the deployment of essential telecommunications infrastructure in Southeast Queensland, risking the state’s readiness to host the Brisbane 2032 Olympic and Paralympic Games.
The ATA cited numerous examples of protracted planning delays that have frustrated the delivery of new mobile coverage – with the average time to obtain planning approvals for new sites at 211 days.
Similarly, the deployment of one intercapital fibre backbone required over 3,000 land access activity notices, 1,128 construction certificates, 1,723 land access surveys, and 171 cultural heritage and environmental assessments.
“For Australia to maximise AI’s productivity benefits requires foresight and planning. Our message to the committee is straightforward: if governments make it easier to invest, Australians will benefit from more reliable and resilient networks sooner,” Mr Coleman said.
The ATA outlined practical reforms to streamline planning approvals, improve coordination across governments, modernise telecommunications legislation and provide greater certainty for long-term investment.
Mr Coleman said the ATA’s recommendations were designed to unlock private investment rather than create new layers of regulation or require any additional government spending.
“Australia’s major growth corridors need new digital infrastructure to deliver better connectivity, faster speeds and greater capacity. There are communities that need better connectivity yesterday – and too many instances where approvals have been languishing for years.
“We ask the Committee to support the removal of unnecessary barriers which slow investment and delay better connectivity for Australians.
“We have modelled practical, common-sense reforms which will improve productivity as well as Australia’s social and economic well-being. If the government is serious about improving Australia’s productivity, we must see action sooner rather than later.”
