Why is mobile data so much more expensive than Wi-Fi?

1. THEY'RE ACTUALLY DIFFERENT SYSTEMSnWi-Fi (Home Internet)nInternetnYour PhonenSame internet delivery.n2. HOW HOME INTERNET WORKSn1 Internetn2 Fibre Cablen3 Neighbourhood Cabinetn4 House Connection (Fibre / Copper)n5 Wi-Fi Routern6 Your Phone / DevicesnWi-Fi can cover a small area (metres).n3. HOW MOBILE DATA WORKSnInternetnCore NetworknCell TowernYour Phonena large tower or more.n4. TOWERS ARE RIDICULOUSLY EXPENSIVEnEvery tower needs:nLandnConstructionnSteel TowernAntennas & RadiosnFibre ConnectionnBackup BatteriesnDiesel GeneratorsnAir ConditioningnSecuritynMaintenance CrewsnPowernSoftwarenAnd that's before a single customer connects.n5. THEY EVEN BUILD TOWERS WHERE THEY LOSE MONEYnTowers are built in rural and low-income areas too.nCost to build towern$1,000,000+nCustomers nearbynVery fewnThese towers cost millions to build.n6. SPECTRUM: THE AIRWAVES AREN'T FREEnGovernmentnAuctionsnTelecom Companiesn700nMHzn900nMHzn1800nMHzn2100nMHzn2600nMHzn3500nMHz (5G)nSpectrum licences, simply doesn't exist.n7. DEMAND: MANY USERS, ALL AT ONCEnHome Wi-FinUsually serves one family.nMobile TowernCan be serving thousands of phones at the same time.nAt events or busy places (stadiums, CBD, concerts)...nEveryone uses data at once.nTower capacity gets shared.nSpeeds can drop.n8. ZIMBABWE: EXTRA CHALLENGESnEquipment is importedn(using USD).nBorrowing money isnmore expensive.nHigh cost of capitaln(8-12% vs <5% in South Africa)nSmaller market,nhigher costs.nMany areas needncoverage-evennthe hard-to-reachnones.nBuilding and operatingncosts in Zimbabwenare higher.n9. ECONOMIES OF SCALEnFew customersn100ncustomersnMany customersn10 millionncustomersnTotal cost: $1MnEach paysn$10,000nTotal cost: $1MnEach paysn$0.10nThe more you scale the network, the lower the cost per person.n11. IS IT ALL JUST COSTS?