Two-thirds of enterprises believe that the general complexity of their telecom-centric solutions are hindering businesses from making further progress, according to the latest edition of Ericsson’s annual State of enterprise connectivity report.
The study was based on a survey conducted by Censuswide of 2,500 technology decision-makers across Europe – specifically the UK, France, Germany, the Netherlands and Italy – and examined how the connectivity landscape has changed over the past 12 months and how enterprises’ attitudes towards cellular connectivity have evolved.
A number of key standouts emerged from the 2025 edition of the State of enterprise connectivity report. The majority (88%) of respondents surveyed believe that outdated connectivity is restricting the potential benefits of technologies such as artificial intelligence (AI), indicating that a new era is required. Many enterprises also believe that 5G connectivity and next-generation technologies, such as AI, have a symbiotic relationship.
Looking at the latter area as the need for both AI for networking and networking for AI become increasingly clear, 85% of respondents reported that AI helps to improve network performance by automating analysis and reducing manual workload.
In addition, 87% believed that 5G was necessary to accelerate R&D initiatives in their organisations, and 54% strongly agreed that “secure and high-performing networks” would help position their nation as a world-class industrial and technology leader.
The conclusion, said Ericsson, was that businesses that wanted to see a full return on investments in advanced technology must ensure they are upgrading their connectivity infrastructure as well.
While in its latest report on OIR implementation, the European Commission made clear that regulation should not be considered an obstacle to differentiated connectivity. However, the Ericsson survey revealed that Europe was trailing global leaders in the deployment and adoption of transformational 5G due to a regulatory environment seen as impeding profitable investment in advanced connectivity.
The survey stressed that such negative perceptions have to be addressed as 35% of enterprises believed net neutrality rules were limiting telecom providers’ ability to offer specialised connectivity services. Likewise, 38% believe upgrading their network would be too complex, hindering the adoption of 5G solutions.
There was also a stark cash consequence concerning connectivity quality. Just over a quarter of respondents (28%) linked unreliable connectivity directly to a loss of earnings, 31% believed it has led to an increase in waste and 46% regarded it as leading to higher operational costs.
The survey also observed that poor connectivity affected enterprises’ sustainability initiatives, with 71% stating poor connectivity in remote areas restricts their ability to accurately gather emissions data.
Singling out the state of business in the UK, the survey showed that business leaders were are aware of how critical 5G cellular connectivity has become to their long-term success, with 62% of executives believing it gave them more control when scaling their connectivity infrastructure up and down as needed.
Some 61% said that it offered more control over critical operations when compared with fibre or even 4G networks. As a result, 69% observed that 5G was the best investment they could make in the next 12 months, ahead of robotics and automation (45%) and AI (42%).
UK businesses also highlighted the utilities sector as one which could benefit the most from 5G infrastructures. 5G was seen as capable of supporting the demands of modern technology and IoT devices, leading to better management of energy infrastructure (86%) and water infrastructure (82%). Almost one in nine UK respondents saw 5G as important to help the roll-out of advanced technology in hospitals.
Commenting on the findings, Paul McHugh, head of sales EMEA at Ericsson Enterprise Wireless Solutions, said: “It is clear from this report that business leaders are increasingly aware of the benefits and importance of having robust and future-proof connectivity infrastructure. However, numerous barriers persist, ranging from complex regulatory and telecom environments to a lack of skills in 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.”
