New research from CloudMosa shows digital inclusion is shifting from CSR to a core business strategy – and telcos stand to gain if they move quickly

• 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 - 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.

About the B-Gap Barometer Report

Strategic expansion and PSDC partnership set to accelerate Industry 4.0 adoption and talent development in Northern Malaysia

PENANG, June 18 (Bernama) -- KUKA Robotics Malaysia, a subsidiary of Germany-headquartered KUKA — a global leader in intelligent automation solutions and majority-owned by China’s Midea Group – today marked a significant milestone with the official launch of its new Penang branch in Bandar Cassia, Batu Kawan. This strategic move reinforces the company’s commitment to advancing industrial automation and robotics innovation in Malaysia and across the Asia-Pacific Economic region.
 
The ceremony was graced by YB Tuan Jagdeep Singh Deo, Deputy Chief Minister II of Penang, alongside senior representatives from the Ministry of Investment, Trade and Industry (MITI), Malaysian Investment Development Authority (MIDA), InvestPenang, and key industry leaders.
 
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, congratulated KUKA on its office expansion to Penang, stating, “KUKA’s expansion into Penang underscores Malaysia's robust industrial ecosystem and the growing demand for advanced automation solutions. This new office will assume a key role in supporting our high-technology industries through closer customer engagement, enhanced technical services, and the development of local talent. The initiative is well aligned with the goals of the New Industrial Master Plan (NIMP) 2030, particularly in building Malaysia’s strengths in smart automation.”
 
This expansion follows KUKA’s successful establishment of its first Malaysian office in Puchong, Selangor and represents a strategic move to support Northern Malaysia's growing prominence in high-tech manufacturing and smart automation.
 
During the ceremony, KUKA signed a Memorandum of Understanding (MoU) with the Penang Skills Development Centre (PSDC) to collaborate on robotics training and workforce development — a key initiative aligned with Malaysia’s Industry 4.0 vision.
 
“Penang’s strength in advanced manufacturing makes it the ideal location for KUKA’s next chapter. We are proud to partner with state agencies and PSDC to shape the next generation of industrial talent,” said Mr. Tean Shen Zen, CEO of KUKA Southeast Asia.
 
“KUKA's investment in Penang reflects our confidence in Malaysia as a strategic partner for innovation in automation and robotics,” added Mr. Alan Fam, Chief Regional Officer, KUKA APeC.

The new facility features:

• State-of-the-art Application Center showcasing KUKA's latest robotic solutions

• Advanced demonstration areas for electronics, automotive, logistics, and medical applications

• Swisslog AutoStore demo facility highlighting intralogistics capabilities

• Training facilities for workforce development programmes

With this latest expansion, KUKA strengthens its footprint in Malaysia and reinforces its commitment to supporting the nation's Industry 4.0 transformation. The Penang branch is set to serve as a regional hub for innovation, technical support, and talent engagement — empowering businesses across sectors to embrace smarter, more efficient automation solutions.

SOURCE: Malaysian Investment Development Authority (MIDA)

KUALA LUMPUR, June 18 (Bernama) -- PETRONAS Carigali Sdn Bhd today announced a groundbreaking strategic partnership for its Upstream business with Beicip-Franlab, a leading geoscience and reservoir technology company, and AFED Digital, a specialist in advanced AI and digital solutions. Together, they have entered into a Joint Development Agreement (JDA) via TriCipta AI, a pioneering venture aimed at accelerating hydrocarbon discovery, reducing uncertainties, and maximising recovery sustainably across PETRONAS Carigali’s operations.

The partnership will initially focus on delivering high-impact and tangible AI solutions to directly address key challenges in exploration, development, and production. Built on a long-term vision of collaborative success, the strategic partnership reflects PETRONAS’ drive towards operational excellence and future readiness across its value chain.

PETRONAS Executive Vice President and Chief Executive Officer of Upstream, Mohd Jukris Abdul Wahab said, “This partnership reflects PETRONAS’ firm commitment to collaborate for a future-ready Upstream digital and technology ecosystem. By integrating advanced AI and data-driven solutions across the value chain, PETRONAS is reinforcing our position as a resilient and adaptive upstream player.”

This strategic move underscores PETRONAS’ enduring drive for innovation and growth through partnerships, to deliver advantaged barrels in meeting sustainable energy needs.

Issued by
Media Communications 
Group Strategic Relations & Communications
PETRONAS
 
SOURCE: PETRONAS

SHAH ALAM, June 18 (Bernama) -- At the 55th International Paris Air Show (16–22 June 2025, Le Bourget), Menteri Besar Selangor (Pemerbadanan) or MBI Selangor and the National Aerospace Industry Corporation (NAICO) are jointly highlighting their strategic commitment to talent development through the Selangor Aero Park @KLIA Aeropolis and broader initiatives across Selangor. 

As part of their showcase at the Malaysian Pavilion (Hall 3, Stand D94), MBI Selangor and NAICO will unveil a coordinated suite of talent development programmes focused on building a resilient and future-ready aerospace workforce. These initiatives are structured around three key pillars: 

• Development of a Centralised Talent Hub: MBI Selangor and NAICO are exploring the establishment of an Aerospace Talent Centre (ATC) within Selangor Aero Park or other mutually agreed locations. The ATC will serve as a centralised platform for training, reskilling, upskilling, and aerospace-related research, supporting the development of both new and existing talent in the sector.

• Research and Technological Advancement: The partnership will facilitate government–industry–academia collaboration in areas such as advanced manufacturing, composite structures, digitalisation, and emerging aerospace technologies, aimed at driving innovation and ensuring Malaysia remains at the forefront of aerospace capabilities.

• Competency Development via MyAERO Centre: MBI Selangor will collaborate closely with the MyAERO Centre, leveraging it as a key strategic resource hub for competency enhancement. Both parties will participate in aerospace programmes, projects, and national initiatives coordinated through the MyAERO platform. 

“Our approach places talent at the core of Selangor Aero Park’s vision—ensuring we shape, attract and retain the next generation of aerospace professionals,” said YAB Dato’ Seri Amirudin Shari, Menteri Besar of Selangor. 

By collaborating on training capacity and structured pathways, MBI Selangor and NAICO are building a sustainable pipeline of aerospace talent to support both local and global industry needs.

This focus on talent is aligned with Malaysia’s national aerospace aspirations and the Selangor Aerospace Action Plan. Selangor currently accounts for over 65% of the country’s aerospace industry activity, with expectations to exceed 70% by 2030. With key projects like GE Aerospace’s facility and the development of smart infrastructure within Selangor Aero Park already underway, talent readiness is pivotal to supporting long-term industry growth. 

Throughout the event, MBI Selangor and NAICO will host a series of engagements— including in-booth briefings and bilateral meetings with OEMs, MRO operators, academia, and investors—to position Selangor Aero Park as a talent-rich, innovation-driven hub for ASEAN’s aerospace ecosystem.

About Menteri Besar Selangor (Incorporated) (MBI Selangor) 

Menteri Besar Selangor (Incorporated)  (“MBI Selangor”) was established under the Menteri Besar Selangor Enactment (Enactment No: 3 1994) on 21 September 1994. MBI Selangor is a body that was established to administer assets and investments of the State Government, and to represent the State in economic and business activities that are beyond the state government’s jurisdictions. MBI Selangor also plays a role towards promoting and supporting the state government’s development efforts as well as to carry out social responsibility obligations for the public.
 
MBI Selangor is also driving the key economic thrusts under the Rancangan Selangor Pertama (RS-1) launched by Dato' Seri Amirudin Shari, Selangor Chief Minister, in July 2022.
 
SOURCE: Menteri Besar Selangor (Incorporated) (MBI Selangor)