Digital inclusion as strategic growth in Asia

TELECOMMUNICATIONS companies across Asia’s fastest-growing digital markets are being urged to rethink their business models and embrace digital inclusion as a strategic imperative, as new research from CloudMosa reveals a widening “B-Gap” — a term coined to describe the affordability barrier that continues to exclude millions from internet access.

CloudMosa’s B-Gap Barometer report, based on insights from senior telecom leaders in India, Vietnam, and the Philippines, highlights a critical inflection point for telcos. As 97 percent of respondents now identify digital inclusion as central to their business strategy, the sector is shifting away from seeing connectivity access as corporate social responsibility and toward recognizing it as a commercial growth driver.

“The real opportunity lies in those being left behind in the migration to 4G and beyond,” said Shioupyn Shen, chief executive of CloudMosa. “This report is a call to action for industry leaders: those who move first to bridge the affordability gap will shape the next decade of the industry.”

According to the study, 62 percent of telcos across the three countries have already shut down 2G networks, with another 26 percent ready for migration. Still, the demand for older networks persists, especially in India, where 40 percent of respondents said half their users remain on 2G. Cost continues to be a major obstacle in the transition to higher-speed connectivity, with data plans and smartphones remaining out of reach for large portions of the population. In the Philippines, 66 percent of telco leaders cited expensive data plans as a top barrier to 4G migration.

The report notes that over 600 million people across India, Vietnam, and the Philippines remain offline — not due to lack of coverage, but because of affordability constraints. “Closing this B-Gap,” the report argues, “is the industry’s most overlooked growth opportunity.”

Cloud-based technology may offer a solution. CloudMosa’s Cloud Phone, which transforms low-cost feature phones into cloud-powered, internet-ready devices, has garnered significant support among telcos. Ninety-three percent of industry leaders expressed confidence in cloud-powered solutions to bridge the digital divide, with 85 percent noting the ability to run premium apps on basic devices as a compelling feature.

CloudMosa argues that devices like Cloud Phone not only address access issues but offer a new revenue stream. By shifting computing and processing to the cloud, telcos can offer richer digital experiences on low-cost handsets, helping convert “low-revenue” users into viable, long-term customers. This shift would support wider business goals, such as market expansion, improved customer retention, and better alignment with government affordability initiatives.

The research also shows 92 percent of telco leaders see a strong alignment between digital inclusion efforts and national affordability programs. Over half believe inclusion strategies will help with market expansion, and 53 percent link it directly to improved customer retention and loyalty.

As telcos weigh the business case for further investment in infrastructure and customer reach, the report’s message is clear: digital inclusion is no longer optional — it’s essential.