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Despite managing to survive the worst of the COVID-19 pandemic, Australia’s communications infrastructure is still struggling to keep up with customer demand due to the supply chain issues that occurred throughout the period.
This is according to the Australian Communications and Media Authority report titled Communications supply chain market study From equipment and spectrum to wholesale services. The report highlighted how trends are affecting the supply chain across several communications markets, including fixed-line, mobile, wireless and satellite networks as well as the cloud.
“The research showed the COVID-19 pandemic had created a surge in demand for remote working communication, computing products, and consumer devices. This demand has in turn impacted the supply of microchips required for these products, with disruptions to manufacturing processes and logistics delays,” ACMA said in a media release.
Equipment and infrastructure demand has also changed to assist in transformation such as upgrades from non-standalone to standalone 5G networks, network sharing arrangements and cloud network virtualisation.
ACMA points at Australia’s reliance on small markets such as Taiwan for the growing demand of chips and semiconductors for the shortage, with about 75% of the global semiconductor supply coming from Taiwan-based manufacturers such as the Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectrics Company (UMC).
While it will take a long time to resolve supply chain issues, the country’s telcos are already looking for ways to address demand.
“There has been a shift towards some telcos exploring active network-sharing arrangements. This includes increased interest for Open RAN equipment (as citied by NEC, BAI and Nokia), new trials for neutral host providers (FSG to lead NSW pilot trial) and proposals for mobile network operator sharing agreements,” the study said.
Communication services are an essential part of various services and applications offered to Australians. Connectivity has become an integral part of daily life though connecting communities, remote working and providing essential services such as telehealth and education.
The study will be used by the ACMA to help inform its decision making in relation to its regulatory remit within the communications industry.
