Infrastructure

Formal

The basic facilities, equipment, services and installations required for the effective operation of a business. The minimum requirement to service customers and keep the ‘doors open’. Such costs are more likely to be ‘fixed’ and immovable, rather than vary directly with the business volume.

Real-world Example

A telecoms company invests $50M in fibre-optic cabling and network hardware - infrastructure that underpins its services for years and requires significant upfront capital before it generates revenue.