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This is not really true. Yes, there are economies of scale to be had, but if you're talking landmass of Canada, then the primary cost is laying fiber, which ten
by zeroxfe 4y ago
This is not really true. Yes, there are economies of scale to be had, but if you're talking landmass of Canada, then the primary cost is laying fiber, which tends to be a one-time cost (some caveats there) almost entirely subsidized by the government.
Telcos can then expand networks in cities, towns, regions, based on expected utilization (some of which is also subsidized.) Most of the costs here are operational: management, maintenance, customer support, however there are also costs associated with customer premisis equipment, aggregation hardware, copper/fiber to the homes. (These are not associated with the total landmass of Canada.)
Telecom providers in Canada are extremely monopolistic, very aggressive in keeping competitors at bay (if anyone remembers the huge full-page ads that the big Canadian providers put out when Verizon was planning on entering Canada -- "Americans are going to take our jobs!!!".)