Modern internet and app experiences, which we so often have taken for granted, remain a luxury for the underserved billions who live offline – including an unconnected 1.6 billion in Asia alone.
It is hard for businesses today to imagine not having internet access. But billions in the world still live without it. With the launch of Cloud Phone, CloudMosa is leveraging cloud technology to make the goal of universal internet access closer to reality.
While it stands to change the lives of billions in underserved and unconnected communities, it is also a game changer for telecom carriers, phone manufacturers, and content providers in the shift from 2G to 4G and beyond – providing a rare chance to completely transform their businesses and access the economic opportunities that bringing the next billion people online presents.
How has cloud technology helped reimagine traditional feature phones and what does this mean for underserved communities? DigiconAsia finds out more from Shioupyn Shen, Founder and CEO, CloudMosa.
How has the cloud changed the way traditional feature phones are viewed – and used?
Shen: Feature phones have long been constrained by their limited hardware and software capabilities. However, with the advent of cloud technology, these devices are poised to usher in a new era of affordable connectivity, presenting significant opportunities for growth and innovation for telecom carriers, phone manufacturers, and content providers.
The cloud has fundamentally changed how feature phones are viewed and utilized, primarily by lowering the cost threshold for delivering app experiences and multimedia services. Recent advancements, such as virtual browser technology, enable feature phones to offer modern app experiences and video streaming on 4G networks at a fraction of the cost of budget smartphones. By offloading intensive computing tasks to cloud servers, even the most affordable devices can now deliver seamless, contemporary internet experiences — previously unimaginable capabilities for feature phones.
For example, our Cloud Phone platform allows a $15 feature phone to run popular apps like YouTube and TikTok via the cloud, dramatically lowering the entry barrier for new internet users. This breakthrough not only facilitates customer acquisition but also aids in upgrading existing 2G users to 4G services. Cloud innovations like these hold the potential to help billions of people overcome the cost barriers that have historically limited internet access.
What are the opportunities for business growth this presents to the telco industry?
Shen: Innovations such as Cloud Phone, combined with the phasing out of 2G and 3G networks, represent a transformative moment for the telecommunications industry. This shift allows telcos to tap into a vast, underserved market of nearly a billion people who have had limited access to the internet or app ecosystem.
For carriers operating in highly saturated markets, the implications are substantial. The influx of cloud-enabled internet users stands to increase demand for data and digital services, enhance network efficiency, and open new revenue streams. By leveraging cloud technology, carriers can provide internet-based services and rich digital content on low-cost devices, driving new customer acquisition in emerging markets. As millions of new users engage with digital platforms for the first time, data consumption will surge, creating significant new revenue opportunities for telcos through data usage and service subscriptions.
The shift from legacy systems to advanced, data-driven networks also enhances network efficiency and reduces operational costs. Telcos can deliver over-the-air updates and new services without expensive hardware upgrades, fostering customer loyalty and reducing churn rates. As networks evolve and partner ecosystems become essential for telco innovation, cloud technology, and cloud-native networks enable telcos to explore new business models and partnerships, offering unique services ranging from entertainment packages to enterprise solutions and digital advertising platforms.
How does this impact the underserved communities in Asia, and what does it mean to the efforts to bring the next billion people online?
Shen: Cloud technology is playing a critical role in bridging the digital divide by making feature phones a viable tool for digital inclusion. The equation for digital inclusion relies on (A) connectivity + (B) affordable devices with compelling applications. While connectivity has improved, the real challenge to bringing the next billion people online lies in access to affordable devices (B) for those with limited incomes. We call this the “B-Gap” — the chasm preventing billions of users from coming online or continuing their journey to accessing all the internet has to offer.
Across Asia, approximately 1.6 billion people still remain unconnected, often excluded from the opportunities brought about by technological advancements. Cloud technology, particularly remote browser technology, can dramatically reduce the cost of internet access, allowing those with limited incomes to participate in the digital economy.
This also creates more opportunities for telcos to connect the next billion people. In Vietnam, for example, where the government plans to sunset 2G/3G networks to free up spectrum for 4G/5G, cloud-enabled feature phones offer a vital solution for those who cannot afford the smartphone. Financial constraints make upgrading devices challenging for many Vietnamese, and partnering with telcos such as Viettel will be instrumental to solving the B-Gap. We worked with Viettel to introduce a $18 Cloud Phone-enabled feature phone that saw strong demand and sales, representing a 40% increase in their feature phones. The collaboration marks our first important step to creating partnership pathways with the telco industry to make modern internet and digital experiences more accessible and affordable for underserved users.
What can we learn from India’s successful pilot with HMD?
Shen: Cloud Phone was piloted in India last year in partnership with Human Mobile Devices (HMD), the makers of Nokia phones. We share a commitment to shaping culture, advancing connectivity, and propelling innovation forward. Both organizations strive to create solutions and products to empower individuals and create business opportunities around the immense potential of bringing the next billion users online.
As an early adopter of Cloud Phone technology, HMD found innovative ways to integrate new functions into their feature phones at affordable prices, helping close the B-Gap. The pilot enabled existing Nokia 110 4G (2023) and Nokia 106 4G (2023) feature phones to access YouTube Shorts and other cloud-based news, weather, and entertainment apps.
The soft launch revealed substantial demand for the unique experiences enabled by this technology, retaining over 93% of users with high engagement levels. It also underscored the growing popularity and significance of video streaming, as 96.6% of users accessed and spent most of their time on YouTube and YouTube Shorts. This highlights how video is fast becoming a major data usage driver, with 120 MB per hour (for QQVGA) and 360 MB per hour (for QVGA) consumption rates, far outstripping the 20 MB per hour typical for non-video content. Access to video content extends beyond entertainment, serving as a powerful gateway to learning, connection, and cultural participation.
How is CloudMosa making a key inflection point in mobile computing? Who will benefit from this transformation from traditional voice and text-based business models to dynamic data-driven possibilities?
Shen: CloudMosa’s Cloud Phone technology democratizes internet access by providing robust computing experiences on any device at any price point. It’s about truly bridging the digital divide and empowering underserved populations with the tools and opportunities they need to thrive in today’s digital world.
This transformation impacts multiple stakeholders. Telecom carriers benefit from increased data consumption as users transition from basic services to data-driven activities, generating new revenue streams. Phone manufacturers can shape the future of connectivity by expanding their user base and forging new partnerships. Content providers and developers can tap into a vast new market, offering digital services to users previously excluded from the digital economy. Cloud Phone’s architecture removes the barriers of traditional mobile platforms, and its “write once, run everywhere” approach empowers developers to reach a new audience of over a billion potential users, maximizing accessibility and engagement.
Thanks to cloud technology, feature phones are evolving into essential tools for digital inclusion, creating substantial growth opportunities for manufacturers and service providers across the mobile ecosystem.
