Bridging the Digital Divide: Advancing Connectivity in Emerging Markets

The challenge of the global digital divide has shifted from access to affordability. Network coverage and availability have expanded with improved terrestrial and satellite services, yet 3.7 billion people – almost half the world’s population – remain disconnected from the Internet.  While network services are becoming more affordable globally, significant disparities persist in connectivity access, particularly in low-income countries.

 The median price of an entry-level mobile broadband subscription in these regions remains 8.6% of average income – 22 times higher than in high-income countries, where it is only 0.4%. Similarly, nearly 2.5 billion people live where the cost of the cheapest available smartphone is at least 25% of the average monthly income; in low-income countries, this figure exceeds a staggering 70%.

Connectivity disparities are especially stark between urban and rural populations. Only 16% of rural citizens in low-income countries have access to the Internet, compared with 46% of those living in cities. Yet only 12 of 65 low- and middle-income countries explicitly address smartphone affordability in their national broadband plans, highlighting a significant policy gap.

Governments increasingly recognize that achieving universal, meaningful connectivity requires innovative approaches. Policy levers such as spectrum liberalization, regulatory reforms, and taxation restructuring can foster innovation and stimulate private investment. Some governments are employing targeted interventions, including direct investments in networks as well as public-private partnerships (PPPs), community networks, and needs-based subsidies powered by data analytics and AI.  However, these policy and market ambitions often face formidable obstacles, including bureaucratic inertia, stakeholder resistance, and lack of political will.

To overcome these challenges, policymakers must ask:

• • • Is the policy ecosystem aligned with national digital transformation goals?
    • How can private investment be effectively incentivized?
    • What innovations are needed to deliver ubiquitous connectivity and expand capacity in the AI era?

Private investors, philanthropic donors, and entrepreneurs are seizing opportunities to leverage emerging technologies and innovative business models that promise to expand network access. Executive vision and systemic policy reform are paving the way for creative policy solutions and bankable ventures that address:

• • • Satellite-based network backhaul
    • Tower and passive network sharing
    • Active network sharing, including neutral host networks
    • Community financed networks
    • Non-terrestrial networks and Direct-to-Device
    • Spectrum reform
    • TV whitespaces
    • Open RAN
    • Device subsidies and financing for underserved markets.

Network Dynamics: Expertise in Advancing Telecom Ecosystems

With over 30 years of experience in nearly 60 countries, Network Dynamics has established itself as a trusted advisor to governments, investors, and industry leaders worldwide, particularly in emerging markets. Our work spans policy development, regulation, public-private partnerships, and stakeholder alignment to advance national connectivity objectives.

Key areas of expertise include:

• • • National Broadband Networks: Designing scalable and inclusive broadband initiatives.
    • Spectrum Management: Liberalizing spectrum allocation to maximize efficiency and innovation.
    • Municipal and Rural Networks: Supporting wireless ISPs, community networks, and neutral host models to reach underserved areas.
    • Critical Infrastructure Connectivity: Deploying IoT and SCADA solutions to support industrial and national needs.
    • Sector Taxation and Revenue Models: Addressing challenges in taxation, licensing, and sustainable financing.
    • Cybersecurity and Resilience: Enhancing the security posture of next-generation networks.

As a U.S. Inter-Agency Technical Advisor on 5G and next-generation networks, Network Dynamics has also designed grants for trusted networks and Open RAN solutions in several countries. Our comprehensive expertise in emerging markets positions us as a critical partner for governments, multilaterals, investors, and operators working to bridge the digital divide and build the resilient telecom ecosystems of tomorrow.