I get the idea this is a prototype of something new.
It's better if a prototype is over-engineered so it will perform as claimed, and impress prospective buyers.
Or else the prototype may be 'pardoned as an experimental model', and you will 'get the bugs worked out' before delivery.
In a chain of 1000 units, it's a high likelihood there will be at least one weak link. A component whose performance is degenerating. A tarnished connector. Etc.
Your colleague is banking that a digital signal will always be stronger than the noise level.
What is really needed is a large-scale preliminary test. In the field. Maybe 50 or 100 repeaters. In bad weather, a lightningstorm, etc. In fact he may be planning to do this. He knows what is at stake.
What are the chances an interested customer will ask to see such a test?
Do you have a figure in mind, as to the number of repeaters that will fail to carry the signal? You might request that such test be done at that point. Prior to an all-out commitment of energy and material. Expect to be overruled, however.
Even if you show him a boatload of expert testimony, he will no doubt overrule you.
Until one day he will 'decide on his own' that the larger-scale test has to be done. You may have to watch and wait until the project is partially constructed. It has to be 'his idea.' People do this sort of thing all the time. They backtrack. It is human nature.
The day that (field) test is done, you can expect the results to confirm your expectations. Looking at it straight on, however, today the (lab) test confirms >his< expectations. For the moment, he is winning this dispute.
My aim is not to question your line of reasoning or your persuasiveness. My aim is only to make you feel better about a situation that you cannot prevent.
And granted you are correct...
Could a 'middle ground' design be found? Say, to use a limited number of regenerating repeaters?
Could he have 'something up his sleeve'? Now or in the future?
Could he decide to rent/buy an operating network that is presently in place?
Or to switch to fiber optic cables?
Etc.
Can there be an improvement no one has considered yet? Maybe better than any current plan?