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Sure, but we're not talking about roads, we're talking about cell infrastructure. This means that the biggest cost is, by far, CAPEX, not labour. If you don't
by sudosysgen 5y ago
Sure, but we're not talking about roads, we're talking about cell infrastructure.
This means that the biggest cost is, by far, CAPEX, not labour. If you don't believe me, we can look at the financial statements for Bell : https://www.bce.ca/investors/AR-2020/2020-bce-annual-report.pdf https://www.bce.ca/investors/AR-2020/2020-bce-annual-report.... [PDF Warning]. Labour is only 33%, and a lot of that labour is in wired connection installations which require disproportionately more labour than wireless installations. I don't see why these costs would be any lower in Russia.
Indeed, if you try to get data for Wireless only, you'll find that the Wireless section has an EBITDA of 3.7 billion, with a revenue of 8.7 billion. That's an insane EBITDA margin of 42%. and that's in a pandemic year. Now the issue with these figures is that this takes into account contract phones, as revenue. In reality the profit margin of just providing the wireless network is simply through the roof.
So even if you were to remove the 20% or so that goes to labour in the wireless segment completely, Canadian telecoms are still 5x+ more expensive than they should be.