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

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dc.contributor.authorCariolle, Joël
dc.contributor.authorHoungbonon, Georges Vivien
dc.contributor.authorSilue, Tarna
dc.contributor.authorStrusani, Davide
dc.date.accessioned2024-07-16T13:56:08Z
dc.date.available2024-07-16T13:56:08Z
dc.date.issued2024-07-16
dc.description.abstractSubmarine cables enable international connectivity and are essential for high-speed internet access. This paper tests their potential to improve the affordability of internet access by supporting a price drop through cost savings or increased competition intensity. The empirical framework relies on a dataset that combines the capacity of submarine cables with price data on fixed and mobile internet across 150 countries over a decade. Using a two-way fixed effects estimator, the analysis finds that the expansion of submarine cables is associated with a statistically significant drop in the price of internet access, up to 14–21 percent, depending on the technology, for every doubling of the capacity of submarine cables, and with large regional disparities. These effects stem from cost savings in the short run and tend to decline over time, concomitant with a rise in domestic telecom market concentration. The analysis also finds that these effects can be enhanced by telecom regulations, especially de-jure independence of the regulator, and the regulation of network interconnection and access, shared telecom infrastructure, and competition from international players across the broadband value chain. The main findings are robust to alternative estimation strategies, including an instrumental variable and a staggered difference in differences.en
dc.identifierhttp://documents.worldbank.org/curated/en/099223207092441042/IDU1cabee90a10d73147681a3421d7461517cbab
dc.identifier.doi10.1596/1813-9450-10840
dc.identifier.urihttps://hdl.handle.net/10986/41874
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10840
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectDIGITAL ECONOMY STRATEGY
dc.subjectSUBMARINE CABLE
dc.subjectPRICE CONTROLS
dc.subjectCOMPETITION ECONOMICS
dc.subjectREGULATORY IMPACT ASSESSMENT
dc.subjectDECENT WORK AND ECONOMIC GROWTH
dc.subjectSDG 8
dc.subjectTELECOMMUNICATIONS
dc.subjectINDUSTRY, INNOVATION AND INFRASTRUCTURE
dc.subjectSDG 9
dc.titleThe Impact of Submarine Cables on Internet Access Price, and the Role of Competition and Regulationen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2024-07-16
okr.date.lastmodified2024-07-09T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099223207092441042/IDU1cabee90a10d73147681a3421d7461517cbab
okr.guid099223207092441042
okr.identifier.docmidIDU-cabee90a-0d73-4768-a342-d7461517cbab
okr.identifier.doi10.1596/1813-9450-10840
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10840
okr.identifier.externaldocumentum34362367
okr.identifier.internaldocumentum34362367
okr.identifier.reportWPS10840
okr.import.id4799
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099223207092441042/pdf/IDU1cabee90a10d73147681a3421d7461517cbab.pdfen
okr.region.geographicalWorld
okr.topicInformation and Communication Technologies::Information Technology
okr.topicInformation and Communication Technologies::Telecommunications Infrastructure
okr.topicInfrastructure Economics and Finance::Infrastructure Regulation
okr.unitIFC
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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