A $184 billion investment gap threatens progress towards universal connectivity, highlighting the need for targeted policy reforms to overcome connectivity barriers such as device affordability and digital skills
14th October 2026, Kuala Lumpur: Of the 4.3 billion people living in Developing Asia Pacific, 1.2 billion remain offline, according to GSMA Intelligence’s new report, Closing the Mobile Connectivity Gap in Developing Asia Pacific, commissioned by the Asian Development Bank (ADB). They represent nearly half, or 46%, of the word’s unconnected population.
While mobile connectivity is nearly universal and 98% of the Developing APAC population live within reach of a 4G network, internet use has not kept pace. Despite improvements in mobile internet adoption from 62% to 71% between 2020 and 2025, around 1.1 billion people who can access broadband still remain offline. This highlights a significant usage gap, driven by barriers such as affordability, limited digital skills, safety and security concerns, and a lack of relevant content.
Mobile internet usage and coverage vary by sub-region. East Asia reports a mobile internet usage rate of 93%, primarily driven by China, but this drops to 36% for the Pacific Islands (including countries such as Papua New Guinea and Solomon Islands). The Pacific Islands also suffer from a high coverage gap at 16%, followed by Central and West Asia at 11% (for example in Pakistan). Southeast Asia has seen the fastest connectivity growth over the past five years, with mobile internet penetration increasing by almost 20 percentage points to reach 76% at the end of 2025 (led by markets such as Malaysia, Thailand, and Vietnam).
There is also a technological divide within the region that affects peoples’ ability to connect to mobile internet, as well as the quality of connectivity they receive. While most (93%) mobile internet users in Developing APAC connect using a 4G or 5G smartphone, 7% use a 2G feature phone or 3G smartphone. This figure reaches 23% in Central and West Asia and 59% in the Pacific Islands. Countries where more than 90% of mobile internet users are on 4G or 5G have 50% higher data usage per user than those with lower adoption.
Women in the region are 12% less likely to use the mobile internet than men, with the largest gender gaps in the Pacific Islands and South Asia at just over 25%. People living in rural areas are 25% less likely to use the mobile internet than urban population, reflecting more pronounced barriers related to affordability, digital skills and safety.
John Giusti, Chief Regulatory Officer for the GSMA and President of the GSMA Foundation, said, “Closing the mobile usage gap is a development imperative, with proven impacts on poverty reduction, education, health and economic growth. Progress will require pro-investment policy reforms, alongside concerted action to address the barriers people face to getting online. Governments increasingly rely on digitalisation to boost productivity, drive innovation and enhance national competitiveness, underpinning the urgent need for policy change.
Without action, the usage gap could continue to widen as more advanced markets move towards next-generation technologies.”
Without additional investments beyond expected and planned levels, Developing APAC is projected to fall 18 percentage points short of the ITU’s 2030 universal connectivity target. To achieve this, the report estimates that at least $316 billion must be invested across the region. $132 billion is currently expected to be invested by the private sector and consumers, leaving an investment gap of $184 billion which will require pro-investment policy intervention by governments and regulators, alongside additional financing, to address factors including device affordability, digital skills and the deployment of additional network capacity.
The report estimates that closing the 4G connectivity gap by 2030 will deliver a GDP uplift of around $230 billion across Developing APAC. Universal connectivity would also lead to wider socioeconomic benefits such as poverty reduction, improved education and health access, humanitarian assistance and lower carbon emissions.
The economic case for investing in closing the mobile internet usage gap in Developing APAC is clear. Closing the connectivity gap will require renewed policy attention, targeted investments, and collaborative action across the public and private sectors. Efforts to improve device affordability, strengthen digital skills, advance incentive mechanisms, foster an enabling investment environment, and expand network capacity will be critical to reaching universal connectivity as well as increased digital adoption.
Read the full report here: Closing the Mobile Connectivity Gap in Developing Asia Pacific
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