Mind the B-Gap: Telcos see a compelling case for digital inclusion powered by cloud technology
· Majority (97%) of telco leaders say digital inclusion is now central to their business strategy, driven primarily by the need to bridge the digital divide (71%)
· With 92% of respondents seeing a strong alignment with government affordability initiatives as a key benefit of prioritizing digital inclusion
· Despite 2G network phaseouts progressing – with 62% of telcos completing the transition – 40% of Indian consumers still rely on 2G, exposing a critical gap in access
· 93% express confidence in cloud-powered solutions to help close the digital inclusion gap across high-growth markets
HONG KONG SAR - Media OutReach Newswire – 18 June 2025 - Millions of would-be customers remain offline across Asia's fastest-growing digital economies. This is not a lifestyle choice; it's because telcos are overlooking them — and a big growth opportunity in the process. In India, Vietnam, and the Philippines alone, over 600 million people still lack affordable access to the internet. CloudMosa, a leading cloud and mobile technology company, today released its inaugural B-Gap Barometer report, exploring the barriers keeping people offline in markets with network access as well as attitudes to potential solutions.
Based on insights from senior telecommunication leaders across the digitally ascending markets of India, Vietnam, and the Philippines, the report maps telcos' 2G-to-4G migration, identifies persistent barriers to digital inclusion, and outlines how decision-makers are rethinking innovation and business strategies amid network transitions. The research also reveals the shift we're seeing in digital inclusion becoming a strategic business priority, underscoring affordable access as the next frontier for growth.
'Telcos are racing to the future with 5G, but growth won't come from the top alone,' said Shioupyn Shen, CEO of CloudMosa. 'The real opportunity lies in those being left behind in the migration to 4G and beyond. 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.'
Rising demands for affordable connectivity
Telcos are now at a crossroads. According to the B-Gap Barometer, 62% of operators across India, Vietnam, and the Philippines have already completed their 2G shutdowns, and another 26% are prepared for migration. Yet, despite the rapid progress in network infrastructure to support 4G, large populations still rely heavily on 2G networks. This is particularly evident in India, where 40% reported that up to half their company's user base is still on 2G networks.
Despite existing network coverage, many users remain offline because affordability still prevents underserved consumers from fully participating in the digital economy – a challenge CloudMosa has termed the 'B-Gap'.
In the Philippines, 66% of telco leaders cite costly data plans as consumers' top barriers in transitioning to 4G and beyond. Vietnam and India follow closely, with 57% and 51% reflecting a similar sentiment. While more users are aiming to upgrade to smartphones – 73% in Vietnam and 62% in the Philippines – many still lean on feature phones given cost limitations. Seventy-five percent of Indian users still prefer traditional feature phones, driven by cost, simplicity, and reliability.
While the rest of the world is rushing towards 5G, these users present the region's most overlooked commercial opportunity and telcos are uniquely positioned to move them up the value chain to ultimately close this gap. Doing so will unlock revenue, drive education, employment, economic mobility, and social inclusion.
Why inclusion is now a business imperative
As telcos continue to grapple with legacy network costs, stagnant average rate per user, or how to expand to underserved markets, digital inclusion is no longer a CSR initiative. It is becoming a critical commercial strategy to reach more users across digitally ascending markets.
A staggering 97% of industry players across three markets pointed to digital inclusion as a central component of their business strategy, with the biggest driver being bridging the digital divide (71%), followed by aligning with CSR goals (56%). More than half (53%) see inclusion helping with market expansion, customer retention and loyalty. The benefits are multifaceted, but the bottom line is clear: digital inclusion is a business growth engine that telcos can't afford to ignore.
Driving the future of inclusive connectivity
While tech affordability has long been a challenge, key players are now presented with a solution in the form of cloud-based mobile devices to reach wider communities. Developed by CloudMosa, Cloud Phone is a breakthrough solution that transforms low-cost feature phones into modern, internet-capable devices. By shifting computing and data processing to the cloud, Cloud Phone delivers seamless online experiences that were previously out of reach for users on basic handsets.
In fact, telco leaders feel positively about this technology in helping to bridge the gap for billions of people worldwide that still lack crucial access. Ninety-one percent believe this solution can help close the B-Gap, with another 90% interested in its potential to dramatically improve UX for low-income users. Eighty-five percent have even cited running premium applications on low-cost devices as an attractive feature.
'We're not just bringing the internet to feature phones — we're unlocking opportunity for billions,' Shen added. 'What we've built with Cloud Phone introduces a new growth model for telecom carriers, phone manufacturers and content providers. We want to show the mobile ecosystem how doing good doesn't need to come at the expense of profitability. Telcos can still achieve commercial success while providing solutions that meet people where they are.'
What's next: The business playbook for telcos
Traditionally viewed as low revenue customers, 2G feature phone users now represent a significant untapped opportunity. With cloud-based solutions reducing device and data costs, telcos can serve this segment profitably, offering app-based services on feature phones that operate like smartphones.
Solutions such as Cloud Phone offer a high-margin innovation platform to tackle the challenges telcos are facing by unlocking new growth while enabling digital transformation and wider business goals. Along with the right partnerships and business models, telcos can transform inclusion into real impact.
Download the B-Gap Barometer here: .
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· Majority (97%) of telco leaders say digital inclusion is now central to their business strategy, driven primarily by the need to bridge the digital divide (71%) · With 92% of respondents seeing a strong alignment with government affordability initiatives as a key benefit of prioritizing digital inclusion · Despite 2G network phaseouts progressing – with 62% of telcos completing the transition – 40% of Indian consumers still rely on 2G, exposing a critical gap in access · 93% express confidence in cloud-powered solutions to help close the digital inclusion gap across high-growth markets HONG KONG SAR - Media OutReach Newswire – 18 June 2025 - Millions of would-be customers remain offline across Asia's fastest-growing digital economies. This is not a lifestyle choice; it's because telcos are overlooking them — and a big growth opportunity in the process. In India, Vietnam, and the Philippines alone, over 600 million people still lack affordable access to the internet. CloudMosa, a leading cloud and mobile technology company, today released its inaugural B-Gap Barometer report, exploring the barriers keeping people offline in markets with network access as well as attitudes to potential solutions. Based on insights from senior telecommunication leaders across the digitally ascending markets of India, Vietnam, and the Philippines, the report maps telcos' 2G-to-4G migration, identifies persistent barriers to digital inclusion, and outlines how decision-makers are rethinking innovation and business strategies amid network transitions. The research also reveals the shift we're seeing in digital inclusion becoming a strategic business priority, underscoring affordable access as the next frontier for growth. 'Telcos are racing to the future with 5G, but growth won't come from the top alone,' said Shioupyn Shen, CEO of CloudMosa. 'The real opportunity lies in those being left behind in the migration to 4G and beyond. 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.' Rising demands for affordable connectivity Telcos are now at a crossroads. According to the B-Gap Barometer, 62% of operators across India, Vietnam, and the Philippines have already completed their 2G shutdowns, and another 26% are prepared for migration. Yet, despite the rapid progress in network infrastructure to support 4G, large populations still rely heavily on 2G networks. This is particularly evident in India, where 40% reported that up to half their company's user base is still on 2G networks. Despite existing network coverage, many users remain offline because affordability still prevents underserved consumers from fully participating in the digital economy – a challenge CloudMosa has termed the 'B-Gap'. In the Philippines, 66% of telco leaders cite costly data plans as consumers' top barriers in transitioning to 4G and beyond. Vietnam and India follow closely, with 57% and 51% reflecting a similar sentiment. While more users are aiming to upgrade to smartphones – 73% in Vietnam and 62% in the Philippines – many still lean on feature phones given cost limitations. Seventy-five percent of Indian users still prefer traditional feature phones, driven by cost, simplicity, and reliability. While the rest of the world is rushing towards 5G, these users present the region's most overlooked commercial opportunity and telcos are uniquely positioned to move them up the value chain to ultimately close this gap. Doing so will unlock revenue, drive education, employment, economic mobility, and social inclusion. Why inclusion is now a business imperative As telcos continue to grapple with legacy network costs, stagnant average rate per user, or how to expand to underserved markets, digital inclusion is no longer a CSR initiative. It is becoming a critical commercial strategy to reach more users across digitally ascending markets. A staggering 97% of industry players across three markets pointed to digital inclusion as a central component of their business strategy, with the biggest driver being bridging the digital divide (71%), followed by aligning with CSR goals (56%). More than half (53%) see inclusion helping with market expansion, customer retention and loyalty. The benefits are multifaceted, but the bottom line is clear: digital inclusion is a business growth engine that telcos can't afford to ignore. Driving the future of inclusive connectivity While tech affordability has long been a challenge, key players are now presented with a solution in the form of cloud-based mobile devices to reach wider communities. Developed by CloudMosa, Cloud Phone is a breakthrough solution that transforms low-cost feature phones into modern, internet-capable devices. By shifting computing and data processing to the cloud, Cloud Phone delivers seamless online experiences that were previously out of reach for users on basic handsets. In fact, telco leaders feel positively about this technology in helping to bridge the gap for billions of people worldwide that still lack crucial access. Ninety-one percent believe this solution can help close the B-Gap, with another 90% interested in its potential to dramatically improve UX for low-income users. Eighty-five percent have even cited running premium applications on low-cost devices as an attractive feature. 'We're not just bringing the internet to feature phones — we're unlocking opportunity for billions,' Shen added. 'What we've built with Cloud Phone introduces a new growth model for telecom carriers, phone manufacturers and content providers. We want to show the mobile ecosystem how doing good doesn't need to come at the expense of profitability. Telcos can still achieve commercial success while providing solutions that meet people where they are.' What's next: The business playbook for telcos Traditionally viewed as low revenue customers, 2G feature phone users now represent a significant untapped opportunity. With cloud-based solutions reducing device and data costs, telcos can serve this segment profitably, offering app-based services on feature phones that operate like smartphones. Solutions such as Cloud Phone offer a high-margin innovation platform to tackle the challenges telcos are facing by unlocking new growth while enabling digital transformation and wider business goals. Along with the right partnerships and business models, telcos can transform inclusion into real impact. Download the B-Gap Barometer here: .
