The Impact of Shared Telecom Infrastructure on Digital Connectivity and Inclusion

Georges V. Houngbonon, Marc Ivaldi, Emil Palikot and Davide Strusani

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Abstract: Nearly half the world remains offline, and capital scarcity stalls new network buildouts. Sharing existing mobile towers could accelerate connectivity. We assemble data on 107 tower-sharing deals in 28 low-income countries (2008-20) and estimate staggered difference-in-differences effects. Two years after a transaction covering over 1,000 towers, the PPP-adjusted mobile-price index falls USD 1.60 (s.e. 1.10) from a baseline of USD 3.16, while data prices drop USD 1.00 (0.29), baseline USD 3.41 per GB. The number of mobile connections increases. Rural internet access increases by 4.7 pp and female-headed households by 3.6 pp. Tower-sharing agreements increase product market competition as measured by Herfindahl-Hirschman Index.

Date: 2025-07
New Economics Papers: this item is included in nep-com, nep-pay and nep-reg
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