Transforming Timor-Leste: Unleashing the Power of Digital Inclusion and Connectivity

• Current State of Internet Access and Usage
• Emerging Technologies Shaping Digital Infrastructure
• Key Players and Market Dynamics
• Projected Expansion of Internet Services
• Connectivity Disparities Across Regions
• Anticipated Developments in Digital Access
• Barriers to Progress and Pathways for Advancement
• Sources & References

“Timor-Leste (East Timor) is making strides to overcome a long-standing digital divide.” (source)

Current State of Internet Access and Usage

Timor-Leste, one of Southeast Asia’s youngest nations, has made significant strides in expanding internet access over the past decade. As of early 2024, internet penetration in Timor-Leste reached approximately 38% of the population, up from just 27% in 2021 (DataReportal). This growth is largely attributed to government initiatives, increased mobile network coverage, and the entry of new telecommunications providers.

Mobile internet remains the primary mode of access, with over 95% of internet users connecting via smartphones. The country’s two main mobile operators, Timor Telecom and Telkomcel, have expanded 3G and 4G services to most urban centers and are gradually reaching rural areas. However, fixed broadband remains limited, with less than 2% of households having access, primarily in Dili, the capital (ITU Statistics).

Despite these advances, Timor-Leste continues to face a pronounced digital divide. Rural communities, which make up nearly 70% of the population, often lack reliable connectivity due to challenging geography and limited infrastructure investment. The government, in partnership with international organizations, has prioritized digital inclusion in its National Strategic Development Plan 2021–2030, aiming to achieve 70% internet penetration by 2025. Key strategies include subsidizing rural network expansion, investing in digital literacy programs, and leveraging satellite technology to reach remote areas.

Affordability remains a barrier, with the average monthly cost of 1GB of mobile data at $2.50—higher than the regional average (Cable.co.uk). To address this, the government is exploring regulatory reforms to foster competition and reduce prices.

Looking ahead to 2025, Timor-Leste’s internet landscape is poised for further transformation. The planned connection to the North-West Cable System, an undersea fiber-optic cable linking Timor-Leste to Australia, is expected to dramatically increase bandwidth and lower costs (Submarine Networks). This infrastructure upgrade, combined with ongoing policy efforts, positions Timor-Leste to bridge its digital divide and unlock new opportunities for economic and social development.

Emerging Technologies Shaping Digital Infrastructure

Timor-Leste’s journey toward digital transformation is accelerating, with 2025 poised to be a pivotal year in bridging the nation’s digital divide. Historically, Timor-Leste has faced significant challenges in internet connectivity due to its rugged terrain, limited infrastructure, and high costs of international bandwidth. However, recent technological advancements and strategic investments are reshaping the country’s digital landscape.

One of the most significant developments is the planned connection to the Asia Connect Cable (ACC-1), a submarine fiber-optic cable system expected to be operational by late 2024 or early 2025. This project, supported by the World Bank and the Asian Development Bank, will link Timor-Leste directly to Australia and Indonesia, drastically reducing latency and bandwidth costs. According to the World Bank, this initiative could increase internet speeds by up to 20 times and lower wholesale prices by 60%.

Mobile internet is also expanding rapidly. As of 2023, mobile penetration reached 95%, with 4G services covering over 80% of the population (DataReportal). The government’s National Broadband Plan aims to extend 4G and introduce 5G trials in urban centers by 2025, further enhancing digital access and supporting e-government, education, and telemedicine initiatives.

Emerging technologies are playing a crucial role in this evolution. Satellite internet providers, such as Starlink, are being considered to reach remote and mountainous areas where terrestrial infrastructure is impractical. Additionally, local startups and NGOs are piloting community Wi-Fi projects and digital literacy programs to ensure inclusive access and build digital skills among youth and rural populations (UNDP Timor-Leste).

• Submarine cable connectivity will provide affordable, high-speed internet.
• Mobile broadband expansion is increasing coverage and reliability.
• Satellite solutions are bridging gaps in remote regions.
• Digital literacy initiatives are empowering citizens to participate in the digital economy.

With these emerging technologies and strategic partnerships, Timor-Leste is on track to significantly narrow its digital divide by 2025, fostering economic growth and social inclusion.

Key Players and Market Dynamics

Timor-Leste’s internet landscape is undergoing significant transformation as the nation strives to bridge its digital divide by 2025. The market is characterized by a small but rapidly growing user base, with internet penetration rising from just 27% in 2021 to an estimated 38% in 2023, according to DataReportal. This growth is driven by both public and private sector initiatives, as well as international partnerships aimed at improving connectivity and digital literacy.

• Key Players:
  • Timor Telecom (TT): The incumbent operator, TT, remains the dominant player, providing fixed-line, mobile, and internet services. It has invested in expanding 4G coverage and is preparing for 5G trials (Timor Telecom).
  • Telemor: A subsidiary of Viettel Group, Telemor has rapidly increased its market share since entering in 2013, focusing on affordable mobile internet and rural expansion (Telemor).
  • Telkomcel: Backed by Indonesia’s Telkomsel, Telkomcel targets both urban and rural users, leveraging regional expertise to roll out innovative data packages and digital services (Telkomcel).
• Market Dynamics:
  • Infrastructure Investment: The government’s National Broadband Plan aims to connect 95% of the population by 2025, with support from the World Bank and Asian Development Bank (World Bank).
  • Submarine Cable Projects: The planned South Submarine Cable, connecting Timor-Leste to Australia and Indonesia, is expected to dramatically increase bandwidth and reduce costs by late 2024 (Capacity Media).
  • Mobile-First Growth: With limited fixed-line infrastructure, over 90% of internet users access the web via mobile devices, spurring competition among operators for affordable data plans (BuddeComm).
  • Digital Literacy Initiatives: NGOs and government agencies are rolling out training programs to boost digital skills, especially among youth and rural communities (UNICEF).

As Timor-Leste accelerates its internet evolution, the interplay between infrastructure upgrades, competitive market forces, and inclusive digital policies will be crucial in closing the digital gap and fostering socio-economic development by 2025.

Projected Expansion of Internet Services

Timor-Leste, one of Southeast Asia’s youngest nations, is poised for a significant transformation in its internet landscape by 2025. Historically, the country has faced substantial challenges in digital connectivity, with only about 33% of its population having access to the internet as of 2022 (World Bank). However, a series of strategic initiatives and infrastructure investments are set to bridge the digital divide and accelerate the nation’s digital evolution.

One of the most pivotal developments is the planned connection to the Aurora Submarine Cable System, which is expected to be operational by late 2024 or early 2025. This undersea cable will link Timor-Leste directly to Australia and Indonesia, drastically improving bandwidth, reducing latency, and lowering the cost of internet services. The government, in partnership with international agencies such as the World Bank and the Asian Development Bank, has earmarked over $50 million for digital infrastructure upgrades, including the expansion of 4G and the introduction of 5G pilot projects in urban centers (ADB).

Projections indicate that by the end of 2025, internet penetration could reach 50% of the population, equating to over 700,000 users (Statista). This growth will be driven by:

• Affordable Data Plans: Increased competition among telecom providers is expected to lower prices, making internet access more affordable for rural and low-income communities.
• Digital Literacy Initiatives: Government and NGO-led programs are targeting schools and community centers to boost digital skills, ensuring that new users can effectively leverage online resources.
• Mobile-First Access: With mobile devices accounting for over 90% of internet access, the expansion of 4G and the rollout of 5G will be crucial in reaching remote areas (GSMA).

As Timor-Leste accelerates its internet evolution, the digital divide is expected to narrow significantly. Enhanced connectivity will not only foster economic growth and innovation but also improve access to education, healthcare, and government services, setting the stage for a more inclusive digital future in 2025 and beyond.

Connectivity Disparities Across Regions

Timor-Leste, one of Southeast Asia’s youngest nations, has made notable strides in internet connectivity over the past decade, yet significant disparities persist across its regions. As of early 2024, internet penetration in Timor-Leste stood at approximately 38% of the population, according to DataReportal. This figure, while a marked improvement from less than 10% in 2015, highlights the ongoing digital divide between urban centers like Dili and rural districts.

Urban areas, particularly the capital Dili, benefit from relatively robust 4G mobile coverage and the presence of multiple internet service providers. In contrast, rural and remote regions often rely on slower 2G/3G networks or have no reliable access at all. The lack of fixed broadband infrastructure outside major towns further exacerbates these disparities, limiting opportunities for education, e-government, and economic development in underserved communities (World Bank).

Recognizing these challenges, the government of Timor-Leste has prioritized digital inclusion in its national development agenda. In 2023, the country signed an agreement to connect to the North-West Cable System, a submarine fiber optic cable linking Timor-Leste to Australia and Indonesia. This project, expected to be operational by late 2024 or early 2025, is projected to increase international bandwidth by over 30 times and reduce latency, making high-speed internet more accessible and affordable nationwide (Capacity Media).

• Mobile Internet: Mobile subscriptions have surpassed 1.2 million, but only about 40% are active data users, reflecting affordability and coverage gaps (ITU).
• Affordability: The average cost of 1GB of mobile data is around 4% of monthly income, higher than the global affordability target of 2% (A4AI).
• Digital Literacy: Efforts are underway to improve digital skills, with support from international partners and NGOs, but rural populations remain at a disadvantage.

By 2025, the completion of the submarine cable and ongoing policy reforms are expected to significantly narrow the connectivity gap. However, sustained investment in last-mile infrastructure, digital literacy, and affordable access will be crucial to ensure that all Timorese benefit from the digital revolution.

Anticipated Developments in Digital Access

Timor-Leste’s digital landscape is poised for significant transformation in 2025, as the nation intensifies efforts to bridge its persistent digital divide. Historically, Timor-Leste has faced considerable challenges in internet connectivity, with only about 33% of the population having access to the internet as of 2022 (DataReportal). However, a series of anticipated developments are set to accelerate digital inclusion and reshape the country’s socio-economic trajectory.

• Submarine Cable Connectivity: The government’s commitment to the South Submarine Cable project, expected to be operational by late 2024 or early 2025, is a game-changer. This infrastructure will connect Timor-Leste directly to Australia, drastically improving bandwidth, reducing latency, and lowering costs for both consumers and businesses (ABC News).
• Mobile Internet Expansion: With mobile penetration rates surpassing 90% but mobile internet usage lagging, telecom operators are investing in 4G and piloting 5G technologies. The expansion of affordable data packages and improved rural coverage are expected to boost internet adoption, especially among youth and in remote communities (BuddeComm).
• Digital Literacy Initiatives: The government and international partners are rolling out digital literacy programs targeting schools, women, and marginalized groups. These initiatives aim to ensure that increased connectivity translates into meaningful digital participation and economic opportunity (UNICEF Timor-Leste).
• Policy and Regulatory Reforms: The National Digital Strategy 2022–2027 outlines regulatory reforms to foster competition, attract investment, and safeguard digital rights. These policies are expected to create a more dynamic ICT sector and stimulate innovation (Government of Timor-Leste).

By 2025, these developments are projected to increase internet penetration to over 50%, narrowing the digital divide and enabling broader participation in the digital economy. As Timor-Leste embraces these changes, it stands to unlock new opportunities in education, health, and entrepreneurship, setting a foundation for inclusive growth in the digital era.

Barriers to Progress and Pathways for Advancement

Timor-Leste’s journey toward digital transformation has been marked by significant challenges, yet recent developments signal promising pathways for bridging the digital divide by 2025. Despite notable progress since independence, the country’s internet penetration remains among the lowest in Southeast Asia, with only about 38% of the population having access to the internet as of 2023 (DataReportal). Several barriers continue to impede widespread connectivity and digital inclusion.

• Infrastructure Limitations: Timor-Leste’s rugged terrain and dispersed rural population make the expansion of broadband infrastructure costly and logistically complex. The country relies heavily on satellite and limited undersea cable connections, resulting in high latency and unreliable service (World Bank).
• Affordability: Internet costs remain prohibitive for many citizens. The average monthly price for a basic broadband package is over $40, a significant expense in a country where the gross national income per capita is around $1,600 (ITU).
• Digital Literacy: Low levels of digital literacy, particularly in rural areas, hinder the effective use of online resources. Educational initiatives are still in early stages, and many schools lack reliable internet access (UNICEF).
• Regulatory and Market Constraints: The telecommunications sector has limited competition, with a small number of providers dominating the market. This restricts innovation and keeps prices high (BuddeComm).

Despite these barriers, several pathways for advancement are emerging. The government’s National Digital Strategy aims to expand fiber-optic networks, promote public-private partnerships, and enhance digital skills training. International donors and organizations are supporting projects to connect schools and health centers, while new undersea cable projects promise to improve bandwidth and reduce costs by 2025 (ABC News).

By addressing infrastructure, affordability, literacy, and regulatory challenges, Timor-Leste is poised to make significant strides in closing the digital divide, fostering greater social inclusion, and unlocking new economic opportunities in the coming years.

Sources & References

• Timor-Leste’s Internet Evolution: Bridging the Digital Divide in 2025
• ITU
• Government of Timor-Leste
• Cable.co.uk
• Aurora Submarine Cable System
• World Bank
• Starlink
• Timor Telecom
• Capacity Media
• World Bank
• ADB
• Statista
• A4AI
• ABC News