Transforming Timor-Leste’s Digital Landscape: Pathways to Inclusive Internet Access

• Current State of Internet Access in Timor-Leste
• Emerging Technologies Shaping Connectivity
• Key Players and Market Dynamics
• Projected Expansion of Digital Infrastructure
• Connectivity Disparities Across Regions
• Anticipated Developments in Digital Inclusion
• Barriers and Catalysts for Internet Growth
• Sources & References

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

Current State of Internet Access in Timor-Leste

Timor-Leste’s journey toward digital connectivity has accelerated in recent years, with 2025 marking a pivotal moment in its efforts to bridge the digital divide. Historically, the country faced significant challenges due to its rugged terrain, limited infrastructure, and high costs of international bandwidth. However, recent developments have begun to reshape the digital landscape.

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 attributed to government initiatives, increased investment from telecom operators, and the expansion of mobile broadband services. The majority of users access the internet via mobile devices, with 3G and 4G networks covering most urban centers and gradually expanding into rural areas.

One of the most significant milestones is the planned connection 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, promises to dramatically increase bandwidth, reduce latency, and lower costs for end-users (Capacity Media). The government, in partnership with international donors and private sector stakeholders, has prioritized this infrastructure as a foundation for digital transformation.

Despite these advances, challenges remain. Internet access is still uneven, with rural and remote communities lagging behind urban Dili in both speed and affordability. The average cost of 1GB of mobile data in Timor-Leste is around $2.50, higher than the regional average (Cable.co.uk). Digital literacy and access to devices also present barriers, particularly among older populations and in isolated areas.

Looking ahead to 2025, the government’s National Broadband Plan aims to achieve 70% internet penetration and universal access to basic digital services. Key strategies include subsidizing rural connectivity, promoting public Wi-Fi hotspots, and integrating digital skills training into the education system (Ministry of Transport and Communications).

In summary, Timor-Leste’s internet evolution is at a critical juncture. With new infrastructure coming online and targeted policy interventions, the country is poised to make significant strides in closing the digital divide by 2025, fostering greater inclusion and economic opportunity for its citizens.

Emerging Technologies Shaping Connectivity

Timor-Leste’s journey toward digital inclusion is accelerating as emerging technologies reshape its connectivity landscape in 2025. Historically, the nation has faced significant challenges: as of 2022, only about 33% of the population had internet access, with rural areas particularly underserved (DataReportal). However, recent developments signal a transformative shift.

• Submarine Cable Projects: The government’s partnership with international stakeholders has culminated in the launch of the South Submarine Cable, connecting Dili to Darwin, Australia. This project, operational since late 2023, has increased bandwidth capacity and reduced latency, making high-speed internet more accessible and affordable (Capacity Media).
• Mobile Broadband Expansion: With over 90% mobile penetration, telecom operators are rapidly rolling out 4G and piloting 5G services in urban centers. This expansion is narrowing the urban-rural divide, as mobile broadband becomes the primary mode of internet access for most citizens (BuddeComm).
• Satellite Internet Initiatives: To reach remote and mountainous regions, Timor-Leste is leveraging low-Earth orbit (LEO) satellite services. Partnerships with providers like Starlink are underway, aiming to deliver reliable connectivity to schools, clinics, and community centers by the end of 2025 (RNZ).
• Digital Literacy and Inclusion Programs: The government and NGOs are investing in digital skills training, particularly for women and youth, to ensure equitable participation in the digital economy. These programs are critical for maximizing the benefits of improved connectivity.

As a result of these initiatives, Timor-Leste’s internet penetration is projected to surpass 50% by the end of 2025, with a marked improvement in service quality and affordability. The convergence of submarine cables, mobile broadband, and satellite technologies is not only bridging the digital divide but also laying the foundation for economic diversification, e-governance, and social inclusion (World Bank).

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 2020 to an estimated 45% 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 largest provider of fixed-line and mobile internet services. It has invested in expanding 4G coverage and is preparing for 5G trials, focusing on urban centers like Dili (Timor Telecom).
  • Telemor: A subsidiary of Viettel Group, Telemor has rapidly expanded its mobile network, offering competitive data packages and playing a crucial role in rural connectivity (Telemor).
  • Telkomcel: Backed by Indonesia’s Telkomsel, Telkomcel targets both consumer and enterprise segments, leveraging regional expertise to introduce innovative digital services (Telkomcel).
  • Government of Timor-Leste: Through the Ministry of Transport and Communications, the government is spearheading the National Broadband Plan, aiming for 80% population coverage by 2025 (MTC).
  • International Partners: The World Bank and Asian Development Bank are funding infrastructure projects, including the South Submarine Cable System, which is expected to significantly boost bandwidth and lower costs (World Bank).

Market Dynamics: The market is shaped by high infrastructure costs, challenging geography, and a young, mobile-first population. Mobile broadband dominates, accounting for over 90% of internet subscriptions. The upcoming submarine cable, set to be operational in 2024, is anticipated to reduce wholesale internet prices by up to 60%, making access more affordable (ADB). However, digital literacy and device affordability remain barriers, prompting ongoing public-private initiatives to provide training and subsidized devices.

As Timor-Leste approaches 2025, collaboration among telecom operators, government, and international donors will be critical to achieving universal, affordable, and reliable internet access, thereby narrowing the digital divide and fostering socio-economic development.

Projected Expansion of Digital Infrastructure

Timor-Leste’s digital landscape is poised for significant transformation in 2025, as the nation accelerates efforts to bridge its longstanding 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 strategic initiatives and investments are set to dramatically expand digital infrastructure and improve access in the coming year.

One of the most pivotal developments is the planned connection 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, will provide the country with high-capacity, reliable international bandwidth, reducing dependence on expensive satellite connections (Capacity Media). The government, in partnership with international donors and private sector stakeholders, is also investing in terrestrial fiber networks to extend connectivity from landing stations to urban and rural communities.

Mobile internet is another area of rapid growth. With mobile penetration rates surpassing 90% but mobile broadband still lagging, operators such as Timor Telecom and Telkomcel are rolling out 4G LTE networks nationwide. The government’s National Broadband Plan aims to achieve 70% internet penetration by 2025, focusing on affordable data packages and digital literacy programs to ensure inclusivity (World Bank).

• Rural Connectivity: Special emphasis is being placed on rural and remote areas, where internet access remains below 10%. Community Wi-Fi projects and public internet centers are being established to serve schools, clinics, and local businesses.
• Digital Services: The expansion of e-government, e-health, and e-education platforms is expected to drive demand for reliable internet, further incentivizing infrastructure investment.
• International Support: Organizations such as the World Bank and Asian Development Bank are providing technical and financial assistance to ensure sustainable and inclusive digital growth.

By 2025, Timor-Leste’s internet evolution is set to narrow the digital divide, fostering economic development, social inclusion, and greater participation in the global digital economy (Asian Development Bank).

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 reached approximately 38% of the population, a marked improvement from just 27% in 2020 (DataReportal). However, this growth is unevenly distributed, with urban centers like Dili enjoying far greater access and speeds compared to rural and remote areas.

The government’s National Broadband Policy, launched in 2022, set ambitious targets to bridge this digital divide by 2025. Key initiatives include the expansion of 4G LTE networks, the introduction of fiber-optic infrastructure, and the planned connection to the North-West Cable System, which will provide Timor-Leste with its first direct international submarine cable link (Submarine Networks). This is expected to dramatically improve bandwidth, reduce latency, and lower costs for end-users.

• Urban vs. Rural Access: In Dili, internet penetration exceeds 70%, with average mobile download speeds of 15 Mbps. In contrast, rural districts often report penetration rates below 20% and speeds under 3 Mbps (Speedtest Global Index).
• Affordability: The average monthly cost for a basic broadband package remains high, at around $30 USD, representing a significant portion of average household income outside the capital (World Bank).
• Digital Literacy: Efforts to improve digital skills are underway, with government and NGO-led training programs targeting teachers, students, and small business owners in underserved regions.

Looking ahead to 2025, the successful deployment of the submarine cable and continued investment in last-mile connectivity are expected to narrow the urban-rural gap. The government projects that national internet penetration could surpass 50% by the end of 2025, provided infrastructure rollouts and affordability measures stay on track (ITU). Bridging these connectivity disparities is seen as crucial for Timor-Leste’s economic diversification, educational advancement, and social inclusion in the digital era.

Anticipated Developments in Digital Inclusion

Timor-Leste’s journey toward digital inclusion is poised for significant progress in 2025, as the nation intensifies efforts to bridge its persistent digital divide. Historically, Timor-Leste has faced considerable challenges in expanding internet access due to its rugged terrain, limited infrastructure, and high service costs. As of 2023, internet penetration stood at just 38.3%, with only 510,000 users in a population of 1.3 million (DataReportal).

However, several anticipated developments are set to transform the digital landscape:

• Submarine Cable Connectivity: The government’s partnership with international stakeholders is expected to culminate in the completion of the South Submarine Cable project by late 2024. This initiative will connect Timor-Leste to Australia and Indonesia, dramatically increasing bandwidth and reducing latency and costs (Capacity Media).
• Mobile Broadband Expansion: With mobile phone penetration already above 90%, the focus is shifting to 4G and 5G rollouts. Operators like Timor Telecom and Telkomcel are investing in network upgrades, aiming to cover 80% of the population with high-speed mobile internet by the end of 2025 (BuddeComm).
• Digital Literacy Initiatives: The Ministry of Education, in collaboration with NGOs, is scaling up digital skills training in rural areas. These programs are crucial for ensuring that increased connectivity translates into meaningful digital participation, especially among youth and women (UNICEF Timor-Leste).
• Policy and Regulatory Reforms: The government is revising its National ICT Policy to encourage competition, lower prices, and foster innovation. New regulations are expected to streamline licensing and promote public-private partnerships for infrastructure development (ITU).

By 2025, these combined efforts are projected to boost internet penetration to over 60%, narrowing the digital divide and unlocking new opportunities for education, e-government, and economic growth in Timor-Leste.

Barriers and Catalysts for Internet Growth

Timor-Leste’s journey toward digital inclusion has been marked by both significant barriers and promising catalysts, shaping the nation’s internet landscape as it approaches 2025. Despite being one of Southeast Asia’s youngest and least developed countries, Timor-Leste is making concerted efforts to bridge the digital divide and foster internet growth.

• Barriers:
  • Infrastructure Limitations: The country’s rugged terrain and dispersed population have made the rollout of broadband infrastructure challenging. As of 2023, only about 30% of the population had access to the internet, with rural areas particularly underserved (World Bank).
  • High Costs: Internet services remain expensive relative to average incomes. The average monthly cost for a basic broadband package is over $40, a significant barrier in a country where the gross national income per capita is around $1,500 (Cable.co.uk).
  • Limited Digital Literacy: A lack of digital skills and awareness, especially among older and rural populations, hampers effective internet adoption and utilization (UNDP).
  • Regulatory and Market Constraints: The telecommunications sector has historically been dominated by a few players, limiting competition and innovation. Regulatory reforms are ongoing but progress is gradual (BuddeComm).
• Catalysts:
  • Submarine Cable Projects: The planned connection to the North-West Cable System, expected to be operational by 2025, promises to dramatically increase bandwidth and reduce costs (Capacity Media).
  • Government Initiatives: The National Digital Strategy 2021–2030 aims to expand internet access, promote e-government, and enhance digital literacy across the country (Government of Timor-Leste).
  • International Partnerships: Support from organizations such as the World Bank and UNDP is helping to fund infrastructure projects and digital skills training (World Bank).
  • Mobile Internet Expansion: With mobile penetration surpassing 90%, mobile networks are increasingly serving as the primary gateway to the internet, especially in remote areas (GSMA).

As Timor-Leste approaches 2025, the interplay of these barriers and catalysts will determine the pace and inclusivity of its internet evolution, with ongoing investments and policy reforms poised to narrow the digital divide.

Sources & References

• Timor-Leste’s Internet Evolution: Bridging the Digital Divide in 2025
• Capacity Media
• Cable.co.uk
• RNZ
• World Bank
• Timor Telecom
• Telemor
• Asian Development Bank
• Submarine Networks
• Speedtest Global Index
• ITU
• World Bank
• Government of Timor-Leste