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5G and Wi-Fi battle for dominance in APAC
Analysis from Opensignal reveals that the Asia-Pacific region is no longer converging on a single connectivity model, with some markets pivoting to Wi-Fi while others double down on mobile
A divergence in user behaviour is reshaping the telecoms industry in Asia-Pacific (APAC), with the region splitting into two distinct connectivity camps driven by local infrastructure economics and 5G maturity.
According to a report released by connectivity analyst Opensignal, the long-held view that developing markets would leapfrog countries with established fixed-line infrastructure to become purely mobile-first is being challenged.
The report, One region, two paths: The opposing forces in data consumption across Asia-Pacific, tracks data traffic across 12 key APAC markets. It found that while Wi-Fi over fixed broadband still accounts for the majority (62%) of smartphone data traffic across the region, individual markets are moving in opposite directions.
“The debate over whether Wi-Fi or mobile dominates data consumption in Asia-Pacific misses a more important reality: the region is not converging on a single connectivity model,” said Robert Wyrzykowski, the report’s author and analyst at Opensignal.
“Consumer behaviour is increasingly shaped around two distinct trajectories, influenced by local usage patterns and the cost and availability of networks,” he added.
The research noted that countries such as India and Indonesia, which have historically relied heavily on cellular networks due to a lack of fixed infrastructure, are now seeing a significant migration of user time towards Wi-Fi.
Opensignal attributed this to the rapid expansion of fixed infrastructure – both traditional fibre roll-outs and the growing popularity of fixed wireless access (FWA) services – which has lowered broadband prices and improved home connectivity.
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Public policies behind digital society initiatives are also driving the shift from mobile to Wi-Fi, especially when they enable access to free Wi-Fi services, said Wyrzykowski. “India has been developing public Wi-Fi access programmes, like PM-WANI, which provides free Wi-Fi at thousands of public locations,” he noted.
Conversely, in other markets, improvements in mobile network quality driven by standalone 5G deployments are making cellular connectivity robust enough to replace fixed access for everyday tasks. In Taiwan and Malaysia, data traffic carried over mobile services already accounts for over half of total smartphone data traffic.
Infrastructure vs affordability
The report suggests that the split is largely driven by a market-specific balance of affordability and policy.
In mature markets such as Australia, where mobile networks often outperform older fixed-line copper infrastructure, users have little incentive to offload to Wi-Fi if their mobile data caps allow for it. However, in markets where fibre is being aggressively subsidised or rolled out by disruptive players, such as Reliance Jio in India, Wi-Fi is reclaiming traffic share.
In Malaysia, steady 5G roll-outs and unlimited prepaid data plans are driving the shift from Wi-Fi to mobile. In addition, the country’s Jendela digital infrastructure initiative, which has extended 4G/5G mobile coverage to underserved areas, has helped to bridge the digital divide and connect new users and regions, increasing the overall time users spend on mobile networks.
“Opensignal data reveals that the real story is a divergence driven by infrastructure, economics and user behaviour,” the report noted. “Opposing forces – affordability, infrastructure investment, policy and network performance – are reshaping how smartphone users consume data.”
For mobile operators and internet service providers in the region, the findings suggest that a one-size-fits-all strategy for APAC is no longer viable. Operators in mobile-dominant markets may need to focus on 5G capacity to handle the load, while those in Wi-Fi-shifting markets might find better returns in FWA or fibre convergence strategies.
