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

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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)

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. [...]

Suggested Citation

  • Joël Cariolle & Georges Vivien Houngbonon & Tarna Silue & Davide Strusani, 2025. "The Impact of Submarine Cables on Internet Access Price, and the Role of Competition and Regulation," Working Papers hal-05122393, HAL.
    • Handle: RePEc:hal:wpaper:hal-05122393
    Note: View the original document on HAL open archive server: https://hal.science/hal-05122393v1
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