4-minute read

New research commissioned by nbn shows many Aussie small businesses are not set up for internet that meet their needs, despite the rapidly rising use and importance of online tools.

Thankfully, a tipping point may be approaching, as awareness of efficiencies and productivity on offer reaches new heights, along with willingness to upgrade connections, and as nbn’s Accelerate Great program drives a surge in new nbn Business Plan customers. 

This research was also covered in an article published by the Australian Associated Press.

Little guys underpowered online  

While the internet has become a critical tool for most businesses, four in five (83%) small businesses rely on consumer nbn plans for daily operations, and a third (34%) don’t know their current internet speed, increasing the risk that they’re falling short of operational needs. More than two thirds (69%) are heavy users of cloud-based workflows, but small businesses are most likely to have upload speeds of 25 Mbps or less, which can limit performance of collaboration and cloud-based applications.

Beyond inadequate speeds, two thirds of small businesses surveyed can only tolerate up to three hours of downtime, but lack business grade backups to help keep them online, with two in five (40%) primarily relying on mobile tethering.      

For Alana Chandler, Co-Founder and Director of disability support provider Project Epic, fast and reliable broadband became essential, as the business couldn’t grow and function without online tools and processes.  

“We knew there was a huge unmet demand for the kind of care and experiences we offer, but that demand grew so much faster than we could have imagined. Thankfully my brother-in-law Mitch Johnston was a programmer for a large corporation, and we quickly brought him on board – initially as an unpaid volunteer – to help build the digital backbone of our business. 

Steve O’Rourke, General Manager of Business Products at nbn, said: 

“Business owners understand the internet can be a critical enabler of growth and success, but that’s only true if their speed and reliability is rightsized for their business. Running a business on a consumer plan can be a bit like fighting a blazing inferno with a garden hose – it’s just the wrong tool for the job.

“Many businesses are unaware of the productivity and efficiency benefits they could be missing out on, but we see that awareness growing through this research and the shift towards business plans. We want all Australian businesses to take full advantage of the infrastructure available to them to help them achieve the best possible return on their investment and efforts.”   

Digital demands are only climbing 

The research indicates any online operational gaps will only widen over time, as 87 per cent of businesses now operate with remote or hybrid working models, and 93 per cent of hybrid businesses rating internet connectivity as essential. This indicates the capacity for hybrid work has shifted from rare privilege to expected perk among job seekers. 

Small Business use of AI almost tripled since 2023, reaching 30 per cent of all surveyed businesses in 2025, which was a 77% increase year-on-year. Passive use may be even higher, as AI has been integrated into a broad range of tools and software to support productivity. While smaller businesses primarily use AI for more efficient marketing and social media, 30-40 per cent of larger businesses are spending substantial parts of their ICT budgets on AI.  

The research also shows that almost all businesses with three or more employees now use cloud-based tools at least weekly, and daily for most businesses with at least 20 employees. Smaller businesses rely on an average of three different cloud different activities, such as file sharing, document collaboration and videoconferencing, while larger businesses use an average of six. 

The systems developed for Project Epic coordinate 250 shifts each week, covering rostering, specific care requirements, shift notes, compliance checks, payroll and continuous improvement initiatives. 

“All of this lives in the cloud where all employees can access the latest information at all times, and many of these systems are supported by AI to make things run as efficiently as possible," Alana said. 

“We also share video content constantly so families feel connected to the beautiful memories we’re creating with their loved ones."

Growing awareness of online potential 

While many small businesses may have inadequate speed to handle surging online uses, most have some understanding of the opportunity costs and benefits they’re balancing. Many (54 per cent) of the small businesses surveyed say faster internet increases efficiency, and more than a third (34 per cent) say it boosts productivity. 

Larger businesses are generally more aware of what’s at stake online, with up to 79 per cent rating extremely reliable, high-speed internet as critical to efficiency, up to 61 per cent say faster cloud-enabled connectivity boosts productivity, and up to 53 per cent say it improves customer service.     

Appetite for improvement 

The growing awareness of online productivity and efficiency advantages is clearly driving intent to improve connections. Two in five (38 per cent) small businesses surveyed are now willing to pay more for higher reliability, which became the second most important driver for internet plan choice, rising seven points to 25 per cent, while price fell seven points to 33 per cent.  

The research also indicates that two in five (39 per cent) businesses are willing to pay more for faster internet, and a third (32 per cent) for faster upload speeds, recognising the importance of cloud services and collaboration tools. 

Accelerating change 

The shift in how small businesses consider their connectivity received a boost in September 2025 with the launch of nbn’s Accelerate Great program. The program significantly reduced the wholesale price of selected nbn Business Plans across the full fibre and HFC networks, while availability continues to increase, as 1.2 million small businesses can now access nbn Business Plans. 

The response has exceeded expectations, with the number of customers on nbn Business Plans leaping more than 240 per cent, from 35,000 in June 2025 to 120,000 in March 2026. Demand from larger business is growing at 10 per cent year-on-year, with 11 per cent of that cohort on plans with more than 1GB symmetrical wholesale upload and download speeds.  

We also saw more than 1,400 moving to the newly introduced business multi-gig plan with wholesale download speeds of 2Gbps and upload speeds of 500Mbps on an nbn fibre connection. 

This significant movement may be explained by rising importance of reliability, as well as speed, among businesses, as nbn full fibre connections are far more resilient, quicker to restore after storms, floods and fires, and require far less ongoing maintenance than nbn's copper based technologies.  

For Alana, upgrading to an nbn business plan was one of Project Epic's earliest and most necessary evolutions. 

“It’s important that information is flowing fast and smooth, even when there are up to 35 carers and other staff across our two centres at the same time, but reliability was even more important. 

“For most businesses, an outage could cost revenue, but if Project Epic systems went down it could be devastating for our young people, who look forward to their outings with us as one of the great highlights of their week or month."

Businesses seeking information on connecting to the nbn, upgrading to fibre, or optimising an internet set up can use the business productivity tool on the nbn website.  

Footnotes

Business Internet White Paper, NBN Co. Limited. February 2026.  

Alana's experience is based on her individual circumstances. Customer experience may vary.

Your experience depends on your nbn technology, and factors outside nbn’s control (like your internet provider and plan, usage during busy periods, your Wi-Fi router generation and internet equipment setup, plus the number of concurrent online devise at your premises).