: Why FNT - Here is an example Hi tebley,To answer your...

: Why FNT - Here is an example Hi tebley,

To answer your questions:

1. The agreement with FNT is binding and remains as announced. There will be no change in the price, price of shares nor cash. There are no variables in the contract. Apparently the FNT vendors are extremely confident they will see significant capital gain from 42c. Again this is due to the size of the China opporunity for the product. They are getting access to a market one third the size of the UK, and pricing themselves slightly under some of the highest phone charges (which equals plenty of room for margin) in the world.

2. There will be an independent analysis completed to be included in the notice of meeting for the EGM to vote on the deal. This has been initiated.

How many people actually know what the FNT deal is about in regards to China? Here is a better example to illustrate the opportunity:

I was asked the question: "Imagine we launched a phone card in Austrlalia in 1985 with a market of 15 million people.

Imagine it was distributed througth 2000 Telecom Austrlalia stores, and that these stores by law were the only ones where you could purchase all non mobile telecoms products ie no department stores, newsagents etc.

Imagine that we had a competitor phonecard, but the competitor phonecard was charging exactly the same as Telecom Austrlalia and that both the competitor and Telecom Austrlalia cost $1.50 a minute to call the USA.

Now imagine we charged $1.20 for the same call through our phonecard, and these were the only options available for calls from a landline phone (and that calls from mobiles were even more expensive). What would happen? Would it successful?"

Put yourself in the position of the consumer.

"Now imagine that against an income of $1.20 we were plugged into our international network located in the Telecom Australia building and our cost was say 0.15c per minute. What would the effect on our bottom line due to our exclusive phone card?"

I think this is a reasonable analogy. I also don't think this should be underestimated. Operationally it might take 3 months to do after completing the deal, but the potential is very large.