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

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. [...]