Monday, July 31, 2023

Cheaper 5G in Canada?

Many cross-national studies suggest digital infra costs for access networks are higher than typical in the U.S. and Canadian markets.So as there are hopes for more-affordable 5G n Canada, obstacles remain.


As always, there are reasons for the apparently-higher costs. Geography plays an important part.  Networks covering only dense cities require less capital, overall, than networks covering large or continent-sized countries. And Canada has extraordinarily low density. So does Australia. 


Networks covering largely rural areas cost far more than networks mostly covering urban areas, as the cost of a mile of infra varies inversely with population and housing density. 


Population Density

Cost per Mile

Urban (>10,000 people per square mile)

$60,000-$80,000

Suburban (2,500-10,000 people per square mile)

$75,000-$100,000

Rural (250-2,500 people per square mile)

$100,000-$125,000

Highly Rural (<250 people per square mile)

$125,000-$150,000


City states have the highest density. Other countries such as Australia and Canada have very low densities. Density can vary by five orders of magnitude. 


Country

Population Density (people per square kilometer)

Macao (China)

21,338

Monaco

17,285

Singapore

8,251

Hong Kong (China)

6,725

Gibraltar (UK)

4,807

Bahrain

1,909

Maldives

1,746

Bangladesh

1,330

India

425

China

150

United States

33.9

Canada

4.1

Australia

3.2

United Kingdom

277

France

122

Germany

233

South Africa

55

Malaysia

95

Thailand

75

Nigeria

222

Saudi Arabia

16

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