While NXT is a capital intensive business, the break even point...

While NXT is a capital intensive business, the break even point differs considerably from other capital intensive businesses. I am not aware of any capital intensive business that covers it's fixed costs after only 25% utilisation and has ebitda margins approaching 70%, and where pricing is not "spot". while what it offers could be regarded as a commodity, it is a commodity where demand is increasing and where failure is not accepted by customers. (Which business offering cloud services want the cloud to not operate?) This is a barrier to entry for new players, as reputation, credibility and past performance will be critical in the future.

I am not too worried with the CAPEX spend. Once NXT reaches critical mass, IMO it will very quickly turn into a money making machine and the board decisions will be around capital management.

HT1