At least in the Canadian communications market, mobile networks are three to four times less costly than fixed (cabled) networks, based on capital intensity.
With the caveat that the mobile figures might be periodically higher when a next-generation network is under construction, ongoing capital investment is about nine percent of revenues.
Telcos tend to invest about 40 percent of revenues on their networks, while cable operators tend to invest about 45 percent of revenue. Those figures probably require some explanation.
In other words, telco networks spend about 4.4 times as much on capex as mobile networks, as a percentage of revenue. Cable operators spend five times as much as mobile operators.
Cable networks have historically been less capital intensive than telecom networks. But cable operators also are energetically investing in gigabit internet access, while most telcos are more measured in their spending. In part, that is because of the high cost of upgrading copper to fiber access facilities.
But telcos likely also are measured in their assessment of revenue upside from fiber upgrades. In other words, they might rationally conclude that there is no business case for rapid fiber upgrades, especially given revenue declines and a cable TV advantage in internet access and video services.
Mobile services revenue generated 51 percent of all service provider revenue in Canada in 2017, the CRTC reports. Fixed network internet access generated 23 percent of total revenue.
Only mobility services and fixed network internet access sources grew; all others declined in 2017, CRTC says. And 34 percent of total revenue is earned by cable TV companies.
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