GSMA’s Mobile Economy Asia Pacific 2025 report reveals that the mobile ecosystem supported 17 million jobs and generated more than US$90 billion in public funding (excluding spectrum and regulatory fees) last year. Yet, the report flags rising spectrum costs, a widening mobile usage gap, and an explosion in digital scams as emerging threats to continued progress.
“Mobile connectivity is the oxygen of Asia Pacific’s digital transformation. Yet… spectrum charges have tripled over the last decade, and over 700 million people remain offline. To sustain momentum, we need affordable spectrum, smarter financing and collective action to tackle scams and cyber-threats,” says Julian Gorman, head of Asia Pacific at GSMA.
According to GSMA, 5G accounted for 18% of mobile connections last year and is set to reach 50% by 2030. However, growth remains uneven, particularly in Southeast Asia, where infrastructure investment has not kept pace in rural and emerging markets.
Blueprint for Asean’s 5G-AI leadership
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Complementing GSMA’s findings, LKYSPP’s new research report estimates that 5G alone could contribute US$130 billion to Asia Pacific’s economy by 2030 but warns that the opportunity to establish regional digital leadership is rapidly narrowing.
Titled Leveraging 5G to Accelerate AI-Driven Transformation in ASEAN, LKYSPP’s report reveals that 5G adoption remains uneven across the region. While Singapore has achieved 48.3% 5G penetration, several Asean countries remain below 1%. Without decisive and coordinated action, these disparities could erode regional competitiveness and deepen inequality.
“The convergence of 5G and AI represents the infrastructure of innovation, powering smart manufacturing, precision agriculture, and autonomous mobility. Asean cannot afford to wait. Coordinated strategies that can accelerate regional leadership in intelligent connectivity must be established to help the region move beyond incremental improvements toward transformative digital leadership,” says Vu Minh Khuong, Professor at LKYSPP.
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The report recommends implementing five strategic priorities to secure Asean's digital future:
- Establishing national 5G-AI development strategies with clear 2025-2030 roadmaps
- Creating empowered coordination agencies in Asean member countries
- Deploying forward-looking spectrum policies that promote accessibility and innovation
- Fostering vibrant AI-driven ecosystems through public-private collaboration
- Implementing robust monitoring frameworks to track progress and enable course corrections.
The report also positions current 5G deployment as critical infrastructure for 6G evolution expected by 2030, making today’s strategic decisions particularly important for future competitiveness.
Boosting enterprise adoption and addressing cyber risks
Both reports underline the need for structural reforms to stimulate enterprise adoption for 5G and AI.
The LKYSPP research highlights examples such as Singapore’s 5G-enabled smart ports reducing latency by 50%, Thailand’s AI-powered disaster response systems, and Malaysia’s wholesale network model reaching 82% population coverage. These case studies illustrate the potential for transformative impacts when coordinated strategies are effectively implemented.
GSMA’s report also emphasises the rising cyber risk as 5G and Internet of Things (IoT) expand. Scam-related losses surpassed US$1 trillion globally in 2024. In response, operators are deploying AI-driven fraud detection systems and launching regional collaborations such as the GSMA-led Asia Pacific Cross-Sector Anti-Scam Taskforce (ACAST), now spanning 16 countries.
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Efforts like GSMA’s Open Gateway, which standardises network APIs for security and identity services, are expected to become central in the battle to safeguard digital trust.
Policy recommendations from both reports align on several fronts: the need for spectrum pricing reform, public-private partnerships, and incentives to extend connectivity to underserved regions. GSMA’s data shows spectrum cost-to-revenue ratios rose from 3% in 2014 to 9% in 2023, squeezing operators’ ability to invest further.
LKYSSP’s study envisions ASEAN leading a 5G-AI-powered future where enterprises scale globally through intelligent manufacturing, farmers optimise yields using AI-driven analytics, and students in remote areas access immersive education platforms. However, that vision can only be realised if bold, coordinated government action is taken, supported by strategic planning and sustained commitment to digital transformation, notes the report.
