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The Other Half of the Internet: Closing Asia’s Digital Gap

There are pockets of deep connectivity but much of Asia and the Pacific remains offline. Photo: Yash Parashar

By Antonio García Zaballos

Coordinated action is needed to close the digital divide in Asia and the Pacific through affordability, literacy, and cybersecurity.

In a riverside village in the Lao People’s Democratic Republic, a woman struggles to submit her child’s school registration online. The mobile signal drops. Data costs eat into her monthly income. In Dhaka, capital of Bangladesh, a tailor has heard of e-commerce but avoids it, unsure whether to trust online payments or how to use them.

Across the Pacific, communities remain offline, cut off from telemedicine, education, and government services that others take for granted.

The region’s digital divide is not only about access, but also about affordability, skills, and trust. Closing this gap is vital to achieving inclusive and sustainable growth, and it will take coordinated action from governments, businesses, and communities to make it happen.

Despite remarkable progress, nearly half of Asia and the Pacific remains offline. In the Lao People’s Democratic Republic, only 26% of people use the internet. Across the region, internet penetration averaged around 53% in 2023, leaving about 2.3 billion people disconnected.

For small island and landlocked economies, high-cost digital infrastructure like submarine cables and satellite links remains the only option. Such projects are essential but expensive, requiring long-term financing and risk-sharing mechanisms.

Even where networks exist, affordability remains a barrier. The region’s internet penetration is expected to reach 65.8% by 2025, still among the lowest regional averages worldwide. For low-income households, the combined cost of a smartphone and monthly data can consume up to 10% of disposable income.

In some Pacific nations, data prices are five times higher than in advanced Asian economies. Without targeted subsidies or universal service funds that lower user costs, many will remain offline.

Digital literacy is another gap and one that affects women disproportionately. Globally, 70% of men use the internet compared to 65% of women. In parts of South and Southeast Asia, this divide widens: only 54% of women are online compared with 59% of men.

Across the Pacific, communities remain offline, cut off from telemedicine, education, and government services that others take for granted.

In Cambodia, Pakistan, and the Philippines, limited digital skills—especially among rural women and youth—curtail opportunities for education, work, and participation.

Even among connected users, the benefits remain uneven. Many limit their digital activity to social media and messaging, missing out on online learning, digital finance, and e-government services.

In South Asia, women are 20%–40% less likely than men to use mobile internet for productive purposes. Small enterprises, too, often resist digital tools due to high costs or security concerns. Connectivity without usage, however, delivers limited impact.

Digital inclusion is not only a social good, it’s an economic necessity. Mobile technologies already contribute 5.6% of Asia-Pacific’s GDP, equivalent to nearly 950ドル billion. Yet the region cannot unlock its full potential if half its population remains unconnected.

Efforts are underway to change this. Through digital initiatives, countries are being helped to transform connectivity into meaningful inclusion. This approach begins with financing inclusive infrastructure from fiber backbones and rural 5G networks to satellite systems that link remote islands.

Because these are capital-intensive investments with uncertain returns, public–private partnerships are promoted, where governments provide viability gap funding or anchor demand while private partners deliver technology and expertise.

Affordability is the next challenge. Smart subsidies, device-leasing schemes, and community Wi-Fi hubs are supported to make access more equitable. Governments are also being assisted in modernizing universal service funds to target not just infrastructure but also user access, particularly for students, small businesses, and women entrepreneurs.

Skills and confidence complete the equation. Countries are guided in designing digital literacy programs that reach schools, vocational centers, and communities, emphasizing inclusion and safety. These initiatives are often developed with tech firms, telecom operators, and NGOs to ensure content remains practical and relevant.

Trust, meanwhile, underpins everything. Governments should be supported in developing cybersecurity, data protection, and privacy frameworks so that users and small businesses can engage online with confidence. Work is also being done on interoperable systems—digital IDs, e-payments, and e-government platforms—that make online services accessible and secure.

Finally, the digital divide does not stop at borders. Efforts are being made to promote regional digital corridors, including interoperable payment systems, harmonized data standards, and shared digital identity frameworks that enable cross-border inclusion. Regional cooperation can make digital investments more efficient and scalable, ensuring that no country is left behind.

Imagine the woman in the Lao People’s Democratic Republic logging into a local Wi-Fi hub to register her child for school with confidence. Picture the Dhaka tailor selling her products online and expanding her market beyond borders. Envision a health worker in the Solomon Islands connecting remote patients to doctors through secure teleconsultations.

This is the future envisioned, one where digital access leads to digital agency. Through finance, technical advice, and partnerships, governments and businesses are helped to align efforts, reduce costs, and expand opportunities. But real progress depends on shared responsibility. Governments must enable, businesses must innovate, and communities must engage.

In a region as vast and diverse as Asia and the Pacific, connectivity is more than a pathway to prosperity—it is the foundation of equality. Together, we can ensure that Asia’s digital revolution uplifts every village, every household, and every individual—turning connectivity into opportunity and potential into progress.

Published: 20 October 2025

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The Asian Development Blog is a forum for high-quality commentary and insights from ADB staff and other development experts about issues and challenges facing Asia and the Pacific.

The views expressed in these blogs are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.

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