Julian Gorman, Head of Asia Pacific, GSMA
Smartphone adoption, as a percentage of connections in India, is expected to grow from 71 per cent in 2022 to 94 per cent in 2030, with an estimated two-thirds of the global population (5.4 billion people) now using mobile phones, and the vast majority of them using mobile internet.
This reflects the significant investment being made by mobile operators in India, and all around the world, to improve connectivity and network infrastructure. These investments have narrowed the coverage gap to just 5 per cent – implying that approximately 400 million people still live in areas across the globe without access to mobile broadband coverage.
There has also been a growing number of mobile subscribers in low- and middle-income countries, where mobile is the primary and, in many cases, the only means of internet access.
However, 3 billion people still do not use mobile internet services despite living in areas with broadband coverage. This is known as the usage gap, where people remain unconnected due to barriers beyond the availability of mobile broadband coverage. A significant issue globally, it is particularly prevalent in South Asia.
An unconnected majority
Worldwide, the usage gap currently stands at 38 per cent, but in South Asia, this rises to 52 per cent. This means that more than half of the region’s population has access to mobile connectivity but is not using it.
This is significant because millions are missing out on the social and economic benefits that many can experience from getting online. For instance, the digital economy in Southeast Asia alone is forecast to be worth $218 billion this year. In India, GSMA Intelligence analysis shows that a successful 5G roll-out could benefit the economy by Rs 36.4 trillion ($455 billion) between 2023 and 2040, accounting for over 0.6 per cent of the GDP forecast for 2040. Being connected enables greater employment opportunities and collaboration, opening up a wider potential online community for support, interaction, work and leisure.
The inverse is true – when people are excluded from the digital world, it becomes far harder for today’s key issues, such as climate change, high energy prices and inflation, to be overcome. Being unconnected also prevents access to critical information and services such as healthcare, education, e-commerce, financial services and income-generating opportunities, which are becoming ever more digital.
In South Asia, GSMA data also highlights that women and those living in rural areas are far more likely to be unconnected and, therefore, impacted by the usage gap. The region’s mobile gender gap now stands at 41 per cent, making it the most pronounced anywhere in the world and more than double the average level of 19 per cent among low- and middle-income countries.
The result of all this? Missed opportunities and life chances – the usage gap is holding people back and contributing to the gender imbalance. Instead of taking an active role in our increasingly online world, people affected by the usage gap are less able to navigate the unique economic and social disruptions of this era.
Breaking down the barriers
So, if the majority of the unconnected population in South Asia live in areas with mobile coverage, it follows that their reasons for not being online are not lack of connectivity or mobile broadband infrastructure.
The GSMA has identified the five main reasons contributing to this usage gap – the principal barriers leaving 52 per cent of people in the region unconnected. These are the unaffordability of handset devices and data services; a lack of digital knowledge and skills; limited relevant content or services; online safety and security concerns; and a lack of access to services or network enablers.
Tackling these barriers is one of the GSMA’s key priorities, and this includes initiatives under the GSMA’s digital inclusion programmes. For over a decade, we have been working to unite the mobile ecosystem, from policymakers to mobile network operators, to address these key obstacles. Now, we are calling for greater collaboration on the issue through our “Breaking Barriers” campaign. Recently, the GSMA announced a national skills programme in association with Jio to offer need-based training to rural women and individuals in India.
One barrier in particular is that the affordability of connected devices remains a significant issue in South Asia. On average, entry-level internet-enabled handsets cost 33 per cent of the monthly GDP per capita in the region. Not only is this the highest among any regions in the world but also represents an increase from 24 per cent (already high in itself) at the end of 2021.
Resolving this issue requires systemic change, which in turn necessitates collaboration from across the mobile industry and policymakers. If handsets and services are detrimentally expensive and people do not have access to financing, fewer people will be able to afford or use them. This not only prevents networks from recouping the considerable infrastructure investment they have made but also hinders local, regional and global economies from benefitting from additional users. When people cannot afford to get online, both they and the broader ecosystem lose out.
Hope for the future
The good news is that the barriers that are currently inhibiting the usage gap are by no means insurmountable, and we believe they can be overcome. However, this will require a stronger collective effort. From enhancing investments in digital skills training to tackling the unaffordability of devices and services, reducing spectrum fees or cutting back on unnecessary regulations, there is a lot that can be done.
Now is the time for us to work together in breaking down the barriers of the usage gap, working towards a fairer world for all. The entire mobile ecosystem needs to collaborate on this important issue and tackle the challenges as a united front – operators, manufacturers, governments, regulators and the international community all have crucial roles to play in finding solutions and closing the usage gap. This is essential to ensure that future generations experience the benefits of living in a truly connected world.
