Enterprises overwhelmingly view 5G as the backbone for future competitiveness, according to a new Ericsson report
The U.S. enterprise sector is placing unprecedented importance on connectivity as businesses navigate economic uncertainty, talent shortages, and rising expectations for digital transformation. According to The State of Enterprise Connectivity – United States 2025 report, enterprises overwhelmingly view 5G as the backbone for future competitiveness, with AI, automation, and IoT driving urgent new connectivity requirements.
5G as a strategic imperative
The report finds that 93% of enterprises believe secure, high-performing networks like 5G are essential for the United States to maintain global technology leadership, while 92% say next-generation connectivity is critical to unlocking business innovation. Enterprises are particularly focused on how 5G can support bandwidth-intensive and latency-sensitive applications such as AI-driven analytics, automated processes, and connected devices.
This urgency reflects growing frustration with U.S. spectrum policy. Nearly 80% of respondents said delays in spectrum auctions have hindered 5G rollouts and slowed innovation, underscoring the belief that regulatory clarity is as vital to competitiveness as the technology itself.
Respondents’ concerns over spectrum access are tied to the fact that the Federal Communications Commission (FCC) no longer has the authority to hold new 5G spectrum auctions. Until 2023, the FCC managed auctions that shifted allocation decisions away from government control and sold licensed spectrum to the highest bidders, giving major 5G operators a clear path to secure airwaves. But that authority lapsed in March 2023
The report stated: “Now, as the world races to leverage data-intensive technology like AI, legislators are calling for the FCC to regain that auction authority. This would allow 5G operators to grab
the spectrum and make it available to those most prepared to push innovation throughout
the country. The alternative, per legislators, is a nation that could lag behind the rest of the world in 5G deployments.”
5G and AI: A symbiotic relationship
Enterprises increasingly view 5G and AI as inseparable. The report notes that 88% of U.S. businesses consider 5G critical to optimizing AI in the workplace, while 90% say AI already improves network security by automatically detecting and remediating issues.
AI is also helping to offset persistent workforce shortages. Nearly nine in ten enterprises say AI is upskilling network management staff by automating analysis and reducing manual tasks. This interplay highlights a virtuous cycle: 5G enables the high-speed data transfer that AI tools require, while AI enhances the performance and security of those very networks.
IoT deployment gains momentum
Ericsson’s research shows that IoT adoption is accelerating, with 58% of enterprises already deploying IoT solutions and another 34% planning new investments. Leading use cases include security systems (54%), video surveillance (41%), GPS and route management (38%), fleet management (37%), and predictive maintenance (35%).
These investments cut across sectors: retail firms are using IoT to reduce losses, logistics providers are improving delivery efficiency, and manufacturers are leveraging predictive maintenance to avoid costly production delays. But these benefits are contingent on reliable, real-time connectivity — reinforcing the dependence on 5G.
“The benefits of 5G cellular tie almost directly into a company’s bottom line. If any of these devices can no longer share data in real time, they will create significant obstacles to accomplishing the simplest of business goals,” stated the report.
Barriers slow broader adoption
Despite enthusiasm, enterprises still face serious hurdles. 52% cite deployment and maintenance costs as the main barrier, while 46% point to hardware upgrade complexity and 41% to infrastructure limitations. Perhaps most telling, 21% of businesses say the return on investment for 5G is still unclear, reflecting an ongoing need to translate technical promise into business value.
The cost of unreliable networks is stark: 95% of business leaders report that poor connectivity raises operational costs or inefficiencies, while 30% say it damages reputation, and 26% link it directly to lost revenue.
Preparing for an AI-native future
Looking ahead, the report points to the rise of “agentic AI” — autonomous systems capable of resolving issues without human intervention. Gartner projects that by 2029, agentic AI will resolve 80% of customer service issues independently. “This suggests the enterprise
will present an even greater dependence on AI technology and, consequently, a greater
dependence on sufficient network connectivity,” said Ericsson.
At the same time, the deployment of 5G standalone networks and the advent of network slicing promise to give enterprises dedicated bandwidth for specific functions, offering the performance guarantees of wired systems without the cost and inflexibility.
Conclusion
The 2025 report underscores a critical inflection point. Enterprises recognize that 5G is not simply a faster network — it is the foundation for AI, IoT, and automation that will shape future competitiveness. Yet challenges around cost, complexity, and spectrum policy threaten to slow momentum.
