Palau has seen significant growth in internet penetration, reaching 78% in 2026, driven by increased affordability and infrastructure investments. The average internet speed has improved to 45 Mbps, supporting more robust online activities and digital services. Despite higher speeds, internet costs remain relatively affordable at around USD 35 monthly, making digital access accessible for most residents. Mobile internet usage continues to dominate, with 72% relying primarily on smartphones for connectivity, reflecting a mobile-first digital culture.
Digital literacy has also advanced, with 68% of Palauans now proficient in basic digital skills, fostering greater participation in e-commerce, e-governance, and online education. Continued investments in infrastructure and digital education are expected to further narrow the digital divide. As Palau advances its digital transformation, the focus remains on expanding rural connectivity and enhancing digital skills, ensuring broader and more equitable access to the internet across the islands.