Digital transformations in developing economies: From the first-mile infrastructure to the end-user finger tips

This paper reviews the concepts, mechanisms, and empirical evidence on the diffusion of digital technologies (DTs) in developing economies, focusing on the distinct infrastructural layers of connectivity—from first-mile submarine cables to last-mile mobile and broadband networks. It examines how infrastructure gaps, usage disparities, and technological divides shape digitalization pathways and their socio-economic impacts, with a particular emphasis on lower-income regions like Sub-Saharan Africa. The analysis highlights how submarine cables reduce connectivity costs and expand Internet access, yet also reveals uneven benefits due to limited absorptive capacity and new digital vulnerabilities. By synthesizing evidence on rural mobile coverage, urban Internet spillovers, and trade integration, the paper emphasizes the need for coordinated policies to bridge digital divides and foster inclusive digital transformation.