Digital connectivity—access toaffordable and reliable internet services—has become a keydriver of economic and social development globally. Economicactivities and government services are increasingly movingonline. Lao PDR is well-positioned to take advantage ofthese trends to improve growth, competitiveness and servicesprovision to the population, but urgent interventions areneeded to ensure that Lao PDR does not fall further behindregional peers. This note reviews the status of digitalconnectivity in Lao PDR and options for improvement,including the respective roles of government and industry.The main findings are as follows: By almost every measure,Lao PDR is lagging significantly in terms of accessibility,quality and affordability of internet services compared toother comparable regional economies. Access to mobilebroadband is increasing, but rural and more remotecommunities are still unserved or underserved. Actions toclose this digital divide are needed urgently. Fixedbroadband—required for high-capacity data transmission tosupport the next wave of digital development—is particularlylimited. Prices for internet are comparatively high. Highcapacity fixed broadband services are very limited andextremely expensive. The minimum retail tariff regime formobile, voice and data services may reduce the ability ofoperators to differentiate services and compete on price andservice quality. Quality of service and affordability ofinternet are continuing concerns which are slowing theintroduction and use of digital services and applications.Regulatory capacity and expertise is increasing, but remainscomparatively low which is further limiting market growthand investment.
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