ATxSG's CommunicAsia 2026: The role of ISPs in expanding connectivity

The challenge of connecting Asia Pacific's vast and diverse populations has never been more pronounced. While urban centers have high-speed connectivity, rural and underserved communities often remain disconnected from the digital economy. This was the central theme of a panel discussion at Asia Tech x Enterprise Singapore's CommunicAsia stage, which happened on May 21, 2026, at the Expo, Singapore, where telecom industry leaders and experts gathered to share their experiences and strategies in expanding connectivity.

The Take

The conversations revealed that while the path to universal connectivity is troubled with obstacles, innovative approaches combining infrastructure development, strategic partnerships, and inclusive business models are making meaningful progress toward bridging the digital divide in Asia-Pacific.

From left to right: Dr. Atsuko Okuda, Regional Director for Asia-Pacific of the International Telecommunication Union (ITU); Dindo G. Marzan, SVP and Head of SME Business Group of Converge ICT Philippines; Vincensius Yudhistira Lindung Setiyana, Chief Technical Officer of Mitra Telemedia Manunggal (MTM Bali) Indonesia; and Fed Mendoza, S&P Global Market Intelligence Kagan Telecom Analyst and Session Moderator.
Source: Fed Mendoza, Divya Keshwani.

The infrastructure challenges facing internet service providers (ISPs) in Asia are multifaceted. Geography exhibits a major hurdle, particularly in archipelagic markets like Indonesia and the Philippines, where thousands of islands must be connected. Converge Information and Communications Technology Solutions Inc. emphasized that some areas lack even basic road access, making it extraordinarily difficult to deploy and maintain network infrastructure. Power availability remains inconsistent in many rural areas, while backhaul limitations constrain the ability to deliver high-speed internet even when last-mile infrastructure is in place. Population density adds another layer of complexity, as the business case for connecting sparsely populated areas becomes challenging. Regulatory barriers, such as permitting issues, also emerged as significant impediments, slowing deployment even in areas where technical solutions are readily available. These challenges emphasize that expanding connectivity is not merely a technical problem but requires addressing a complex web of logistical, economic, and regulatory factors.

Recognizing that infrastructure deployment cannot occur in isolation, ISPs across Asia have embraced strategic partnerships as essential to their expansion. Converge ICT has collaborated with the Philippine regulator Department of Information and Communication Technology (DICT) on the Universal Internet Subscription for Geographically Isolated and Disadvantaged Areas (UISGIDA) program, with the initiative targeting approximately one thousand sites in remote regions, combining fiber and satellite technologies to reach areas that would be impossible to serve through traditional means alone. Converge has partnered with Starlink to provide satellite connectivity and is working with businesses and commercial establishments to install public Wi-Fi access points in underserved localities. Meanwhile, MTM Bali has a distinct approach, preferring to build its own infrastructure within Bali Island to ensure rapid response to incidents and maintain service quality, while still relying on leased backbone capacity from larger operators for inter-island connectivity.

The International Telecommunications Union (ITU) provided a valuable perspective on the policy frameworks and international cooperation mechanisms supporting these connectivity efforts. The ITU works with development banks and government agencies to ensure that connectivity initiatives are sustainable across multiple dimensions, including organizational capacity, environmental impact, and financial viability. Beyond simply providing technical infrastructure, the ITU emphasizes ensuring that communities can genuinely benefit from connectivity through complementary programs in online safety, digital literacy, and applications in education, agriculture, and commerce. This holistic approach recognizes that sustainable connectivity requires more than cables and towers; it demands an ecosystem where people have both the access and the skills to leverage digital services meaningfully. The ITU also facilitates partnerships between various stakeholders, helping to match investment opportunities with connectivity needs while ensuring that projects deliver tangible socio-economic benefits rather than becoming isolated technical deployments that fail to achieve lasting impact.

Affordability emerged as a critical factor determining whether infrastructure investments translate into actual usage. MTM Bali has implemented location-specific pricing strategies, recognizing that urban centers like Denpasar can support different price points than more remote areas. By creating differentiated packages for different locations, including separate offerings for Lombok and West Nusa Tenggara, the company ensures that pricing aligns with local economic conditions. Converge ICT took a contextualized step by introducing prepaid fiber internet, a move that changed the perception of fiber connectivity as a privilege reserved for upper and middle-class households. This innovation opened the market to lower-income families who had previously been unable to afford traditional postpaid plans, demonstrating that business model innovation can be as important as technical innovation in expanding access. Converge has also targeted micro, small, and medium enterprises (MSMEs) with trial offerings, helping these businesses understand how connectivity can support their growth while simultaneously expanding the customer base.

The discussion of low-earth orbit (LEO) satellites revealed a rational view of emerging technologies. Rather than viewing LEO satellites as competitive threats, both Converge ICT and MTM Bali see them as complementary tools in their connectivity resource. Converge's existing partnership with Starlink demonstrates this collaborative approach, recognizing that reaching every Filipino across the archipelago requires a mix of fiber, wireless, and satellite technologies. Meanwhile, ITU emphasized the particular importance of satellites in disaster-prone regions, where terrestrial infrastructure may be damaged or destroyed. The Asia-Pacific region's vulnerability to natural disasters makes redundancy and alternative connectivity pathways essential for resilience. When undersea cables are cut or terrestrial networks fail, satellite connectivity can provide a crucial lifeline for affected communities.

The panel concluded with each participant offering three words to encapsulate their vision for connectivity in Asia. MTM Bali's "all should (be) connected" captured the fundamental goal of universal access. Converge ICT's "fiber, collaboration, empathy" highlighted both the technical foundation and the human partnerships required for success. The ITU's "safety, smart, holistic" emphasized the need for connectivity that is not only widespread but also secure, intelligent, and integrated with broader development goals. These visions collectively point toward a future where connectivity is truly universal, affordable, and meaningful.

Aligned with the panel's insights and discussions, S&P Global Market Intelligence Kagan data indicates that the connectivity gap remains evident in Southeast Asia's archipelagic nations, underscoring the urgency of infrastructure and partnership initiatives. Both Indonesia and the Philippines currently face relatively low fixed broadband household penetration levels, with Indonesia at 24.3% in 2025 and the Philippines at 39.0% in the same year. These figures emphasize that most households in both markets remain unconnected to fixed broadband services, representing a substantial digital divide that limits economic participation and social inclusion. While we forecast improvement through 2032, with Indonesia projected to reach at 30.8% and the Philippines at 57.1%, connectivity challenges will persist for years to come.

The path to bridging Asia's digital divide remains challenging, but the strategies emerging from ISPs and international organizations offer genuine hope. Through infrastructure innovation, strategic partnerships, affordable pricing models, and complementary support services, the industry is making tangible progress toward connecting the unconnected and ensuring that no community is left behind in the digital age.

Global Broadband & Pay TV is a regular feature from S&P Global Market Intelligence Kagan.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.