Lack of competitive access to submarine cables keeps the price of international voice calls and Internet connectivity high
OOne of the main drivers of the prices that African’s pay for international voice calls and Internet access is the cost of international connectivity, as determined by physical access to submarine fiber-optic cables and competition in the international market. Many African countries still lack access to submarine cables, either because they have not yet connected to an available cable or because none is available.
Countries with access to submarine cables have lower international call prices than those without access (see table). But countries that have competitive access have significantly lower prices than those that have retained a gateway monopoly (see table). Access to high-capacity submarine fiber-optic infrastructure is therefore necessary for low-price international voice services, but it is not sufficient. Countries also need to ensure competition in the international facilities segment of the market if customers are to benefit from lower prices and better service.
Telecommunications prices depend on international access conditions
