The modem is provided is covered by a 24-month warranty but you would need to pay RM499 if the modem is damaged due to negligence. The broadband plans are tied to a 24-month contract and if you decide to terminate after 30 days of registration, you’ll need to pay a penalty of RM499 with reducing balance. Once you’ve paid the penalty, the modem is yours to keep.

it means the longer you stay with the plan, the lower penalty you need to pay when terminating within contract period.

for example this is a two years contract. If you terminate at the one year mark, you only need to pay half of RM499. That is how it is normally counted.