The Impact of Submarine Cables on Internet Access Price, and the Role of Competition and Regulation

Joël Cariolle (), Georges Vivien Houngbonon, Tarna Silue () and Davide Strusani
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Joël Cariolle: FERDI - Fondation pour les Etudes et Recherches sur le Développement International, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne
Georges Vivien Houngbonon: IFC - International Finance Corporation, GWU Competition and Innovation Lab
Tarna Silue: IFC - International Finance Corporation
Davide Strusani: IFC - International Finance Corporation

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Abstract: Submarine cables enable international connectivity and are essential for high- speed internet access. This paper examines their impact on internet access price, focusing on price reductions driven by cost savings and competition intensity. Using a dataset of submarine cable capacity and internet access prices across 150 countries over 12 years, and following an instrumental variable approach, the analysis finds that a doubling of submarine cable capacity reduces internet prices by 30–50 percent, with regional disparities. [...]

Keywords: Telecommunications; Submarine Cable; Price; Competition; Regulation (search for similar items in EconPapers)
Date: 2025-06-20
Note: View the original document on HAL open archive server: https://hal.science/hal-05122393v1
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