THE VIBRANT economies of Southeast Asia mask a troubling digital divide, leaving millions of citizens cut off from the social and economic opportunities that connectivity brings.
In the gig economy, for example, workers rely on fast connectivity for job updates and location accuracy — slow speeds or dead zones translate into missed appointments and lost income. Another example, is the online education–spatters of signals affect even the most patient students with broken audio and shaky videos.
EdgePoint Infrastructure, a leading telecommunications player, commissioned a comprehensive study to investigate this divide across countries like Malaysia, Indonesia, and the Philippines. Called “An Infrastructure-Based Approach to Advance Digital Equity in South-East Asia” the study delivers a detailed analysis of infrastructure barriers and policy recommendations to chart a path towards a more equitable digital landscape.
Malaya Business Insight interviews William Walters, President and CEO of Edgepoint Philippines about the research.
Malaya Business Insight (MBI): Your study identifies a significant digital divide within Southeast Asia. What are the key factors contributing to this?
William Walters (Walters): “There’s two different, let’s call it, cohorts of people with different challenges when it comes to digital equity.” Firstly, there’s the unconnected–those without any access to mobile internet. This is fundamentally an infrastructure problem. “So, obviously, if there’s no 5G coverage, you know that’s gonna be a problem.”
Secondly, the ‘under-connected’ face inadequate service quality or affordability. These issues make it difficult for individuals and businesses to fully participate in the digital economy, even with some level of connectivity.
In the interview Walters emphasizes that in the region, the chasm between those with reliable internet access and those denied it is a persistent. This divide not only exacerbates existing inequalities but acts as a brake on the region’s full potential. Expanding infrastructure, particularly telecommunications towers, is identified as crucial, especially in underserved and often rural communities.
MBI: The Philippines seems particularly challenged. Could you elaborate?
Walters: “The Philippines has a long way to go. While goals like expanding the telecommunications network are ambitious, progress is happening…I think it’s moving in the right direction. It’s important to understand that overcoming this digital divide isn’t just about connecting those who have nothing; it’s about addressing issues also faced by the under-connected, creating networks that truly support economic growth and social empowerment.
In this conversation, Walters highlight some of the most manifest areas of the digital divide in the Philippines, it being a scattered archipelagic country, many rural and still many more isolated, aptly described as Geographically Isolated and Disadvantaged Areas (GIDA) where even the most basic services and utilities are lacking.
He said that deploying telecommunications infrastructure in these locations is both expensive and logistically complex due to geographic challenges and sparse populations. Operators find it difficult to justify the investment based on meager potential returns from small, often low-income communities. This leaves rural residents cut off from the most basic connectivity.
Even in urban and suburban areas, a different kind of digital divide exists. While physical infrastructure might be present, many struggle with “meaningful connectivity.” This means inconsistent coverage, slow speeds, and network congestion, especially indoors or high-traffic locations. These limitations impede people’s ability to participate in the digital economy, access educational resources, and stay connected — a problem further compounded by income inequality.
MBI: What should the Philippines do?
WW: “While significant challenges remain, the study provides a blueprint for progress. A holistic approach that blends infrastructure expansion with smart policies and collaboration can create a Philippines (and a Southeast Asia) where digital opportunities are truly accessible to all.”
Collaboration emerges as another key theme. The study argues that governments, infrastructure providers, and communities must join forces for truly impactful change. Shared infrastructure models are proposed as a way to lower costs and accelerate rollout. Crucially, the report advocates for policy changes that promote competition, remove hurdles to infrastructure development, and potentially leverage incentives for companies entering underserved areas.
The digital divide most acutely impacts low- to middle-income groups across both rural and urban settings. The lack of reliable, affordable internet access stifles opportunity. Expanding digital inclusion is key to unlocking both individual economic potential and broader national economic growth, the study concludes.
