You don't have to take my word for it. There's recently been a push for expansion of Romania's broadband network to more rural areas. At an investment of about $110 million US, it will reach an expected 150,000 additional households, for a cost around $730 per household. Compare that to the US, where the estimate is closer to $3000 and as high as $8000 per household, a 7 to 11 fold increase over Romania. [0]
Nearly all aspects of infrastructure build out are heavily weighted towards labor costs. A 2009 rule in the US required large projects use union labor, and just that marginal increase in labor costs increased infrastructure costs by around 15%. Anecdotally, I had a home addition some years back. Materials costs about 20%, labor about 80%.
Also once built, the capital expenditures for something like broadband drop to negligible rates while the labor cost of maintenance & administration just keeps on going, maybe not as high as the initial build but you need new & different workers too-- sales reps, account managers, etc. Given that prices tend towards the marginal cost of production over time, in this case being mostly labor, it makes perfect sense that a country with 1/8 the labor costs could offer a service at 1/5 the cost in the US, the difference in those proportions accounting for the marginal capital costs of maintenance.
Nearly all aspects of infrastructure build out are heavily weighted towards labor costs. A 2009 rule in the US required large projects use union labor, and just that marginal increase in labor costs increased infrastructure costs by around 15%. Anecdotally, I had a home addition some years back. Materials costs about 20%, labor about 80%.
Also once built, the capital expenditures for something like broadband drop to negligible rates while the labor cost of maintenance & administration just keeps on going, maybe not as high as the initial build but you need new & different workers too-- sales reps, account managers, etc. Given that prices tend towards the marginal cost of production over time, in this case being mostly labor, it makes perfect sense that a country with 1/8 the labor costs could offer a service at 1/5 the cost in the US, the difference in those proportions accounting for the marginal capital costs of maintenance.
[0] https://www.telegeography.com/products/commsupdate/articles/...