Quote:Original post by tstrimp
I believe it would also be much cheaper to build expansive wireless networks as opposed to having to run broadband cables to everyone's home. Too bad we're all getting brain cancer. [grin] |
Cost is relative.
There is definitely less material and construction, but at the same time landlines generate more employment and likely generate more wealth across wider range of population, especially among local workforce. (which adds taxes, generates employment, improves status, increases desirability of real estate, ....).
With mobile networks the effort is much more centralized with little outside impact.
Possible exception are big cities where laying cables is difficult, but wifi is not a clear winner there either due to obstruction which requires much higher coverage - for which a quality service will require land lines.
Costs are really tricky. Especially when it comes to infrastructure projects the numbers shuffled around are typically just the immediate costs.
Consider road construction. Is it worth saving 10% of the price for 2 year delay in construction (perhaps to pay less for land)? How much wealth do users of this road generate if they save 10 minutes each time (over two years)?
Most of construction is classified as sunk cost anyway and for most part it's not really the biggest part. Communication infrastructure is prohibitively expensive, but far from all of it is actual on-site construction.
Ironically, this is a very good case against privatization of such investment. Governments and subsidies can do wonders for this type of projects, which is why the further east one goes in Europe the better the internet, despite GDP being exact opposite. It's simply cheaper to build stuff like this in one big swoop using a big budget, since over long run it is competitive to price sensitive investment.
A historical perspective also confirms this. During last depression, infrastructure provided a huge boost toward recovery. And most of it remains in use today. Now would actually be a great time for subsidized large scale construction of cable/fiber networks.
