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Telecom: mobile and fixed networks

Fiber roll-out in a city in Malaysia

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The prompt

An operator plans to pass 100,000 homes with fiber in a Malaysian city. Passing each home costs MYR 1,500 and connecting each subscriber costs a further MYR 800. It expects 40 percent of homes to subscribe at an ARPU of MYR 120 a month. Operating costs are 30 percent of revenue. What is the simple payback in years, and how does it change if only 25 percent of homes subscribe?

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