International Internet Data Flows grow as globe shrinks and economics change

An America Centered View

Cross-Border Data Flows, the Internet and What it Means for U.S. and EU Trade and Investment

the importance of the Internet and cross-border data flows for US and E.U trade and investment with each other and globally. Cross-border data flows between the U.S. and Europe are the highest in the world—50 percent higher than data flows between the U.S. and Asia and almost double the data flows between the U.S. and Latin America. (See the capacity of transcontinental fiber-optic cables in the figure.)

The Importance of the Internet and Transatlantic Data Flows for U.S. and EU Trade and Investment | Brookings Institution

The Internet and the free movement of data globally is an important and growing driver of economic growth, jobs and welfare. This growth happens as the Internet increases productivity and reduces trade costs, which also stimulates trade. The United States International Trade Commission (ITC) estimates that digital trade has increased U.S. GDP by 3.4 to 4.8 percent and created up to 2.4 million jobs. The gains could be even higher if countries reduced their barriers to digital trade. Consumers also benefit as they are able to access new and innovative services. Access to the Internet and the ability to move data freely across borders increases the productivity of businesses and reduces trade costs, thereby creating economic growth and jobs. This is providing new opportunities for small and medium-sized enterprises to participate in the global economy. Consumers are also benefiting as they are able to access new and innovative services.

Global International View  - Linkages Changed

Internet capacity: Hooking up | The Economist

GLOBAL internet traffic continues to soar, according to new data from TeleGeography, a research firm (see chart). Over the past five years the amount of active capacity on subsea cables has grown threefold, the fastest spurt since the internet went mainstream more than a decade ago. Then, the majority of traffic flowed between America and Europe. Now trans-Atlantic bandwidth accounts for only a quarter of the capacity in use. The fastest growing region for traffic is Asia. Intra-Asian connections have overtaken trans-Pacific ones, mirroring Asia’s economic “decoupling” from America. New undersea cable links for sub-Saharan Africa have given the continent more connectivity at lower cost

TeleGeography Map Gallery

Pricing Dynamics Changing

stabilizing prices may flatten volume growth seen above.

Bulk Bandwidth Prices Get Steadier After Long Plunge - WSJ

The relentless drop in prices for Internet bandwidth has slowed sharply, offering a glimmer of hope to a telecom industry still struggling with the aftermath of a bust nearly a decade and a half ago.

Wholesale prices for bandwidth in network hubs like New York, London and São Paulo fell 10% or less in the year ended in June, according to industry researcher TeleGeography. That counts as good news for the companies selling long-haul Internet service, as it put the brakes on steep annual declines that have averaged as much as 34% in previous years.