Telecom, chips and data centers
Take-up rate
The share of homes or customers who could buy a service that actually do.
Last reviewedWhat does Take-up rate mean?
Take-up rate (also called penetration of homes passed) is the number of paying subscribers divided by the number of homes or premises the network can reach. It is a key number when an operator builds fiber: the cost of passing a street is almost fixed, while revenue depends on how many homes sign up. Example: a fiber network passes 100,000 homes and 30,000 subscribe, so take-up is 30 percent. If the build cost is 60 million and each subscriber brings 400 a year of EBITDA, payback is 60 million / 12 million = 5 years; at 20 percent take-up it stretches to 7.5 years.
Where does it come up in case interview prep?
Related terms
- Penetration rateThe share of potential customers who already use the product.
- Payback periodHow long until an investment earns back its cost.
- Capex intensityCapital spending as a share of revenue.
- Fixed costA cost that stays the same when volume changes, within a normal range.
- SpectrumThe radio frequencies mobile operators license from governments to carry signals.
- FablessA chip company that designs chips but has them made by someone else.
- FoundryA company that manufactures chips designed by other firms.
- Yield (manufacturing)The share of units made that come out good enough to sell.