Earlier quoted context omitted.
The vast majority of the cost of any kind of infrastructure is labor, which scales with local wages.[1] A New York subway ticket is about $2.75. That's about 11x more than the cost of a ticket on the Kiev Metro. And it's not like the New York subway makes a profit--fares cover only about half the system's operating costs.[2] In Baltimore, I paid about $50 for a 50mbps connection, or about 20x more than a subway ticke…
"The vast majority of the cost of any kind of infrastructure is labor, which scales with local wages." I'm not sure that's true. Let's say it costs VeriCast $500/year to maintain a single home's landline and broadband connections (including the stuff in the street), for which they charge the customer say $700 per year. Do they really have one employee per 200 connections (assuming $100k full-loaded cost per employee)…
Furthermore, labor costs are not about maintenance, but rather about investing in the infrastructure. And this doesn't translate directly into the price. They make way more money on that infrastructure in the long run.