The Impact of Shared Telecom Infrastructure on Digital Connectivity and Inclusion

Abstract Two decades after the introduction of mobile Internet, a quarter of the world’s population remains offline, largely because of high service prices. Shared telecom infrastructure, especially mobile towers, by reducing costs and increasing competition, can help lower prices and accelerate progress toward universal connectivity. We test this hypothesis using data on 107 tower-sharing transactions in 41 developing countries from 2008 to 2020; 56 of these, in 28 countries, covered over 1,000 tower sites and define treatment in a staggered difference-in-differences design. We found that after such a large transaction, the price of the monthly low-usage mobile-voice basket fell 44 percent, roughly $11.9 PPP per month from a 2010 mean of $27.1. The year after the transaction, mobile data prices fell 30 percent, roughly $11.3 PPP per month from a 2013 mean of $37.1. Mobile usage, rural internet access, and internet access in female-headed households increase substantially, suggesting greater digital connectivity and inclusion. We also found that the Herfindahl–Hirschman Index of retail markets drops by 5 percent following a tower-sharing transaction, suggesting increased competition as a driver of the outcomes.