criterion (australian) and insider(the age), page-21

Teamsky

I'll answer you briefly.

1. I would love to see you get 1.3Mb (remember, thats BYTES not bits.. or else you need 10.4 MegaBits) is actually incredibly hard to get in a single source broadband in australia, you would have to be incredibly close to the exchange to THEORETICALLY get that speed. see "http://www.internode.on.net/residential/adsl_broadband/easy_broadband/performance/" for more details, you will find A LOT of variables affecting performance, the major one being distance.

24Mbit (3Mbyte/s download) is the THEORETICAL maximum for any connection, which would mean having ideal hardware set-up also...

2. Im tipping people don't mind spending $0 for the same service

3. IPTV is well and done in terms of 'first' mover advantage. I didn't say the industry is over or cannot be profited from, just that first movers have well.. moved.

4. I can download a new movie well before QFX gets the release due to movie release agreements with cinemas

5. 720p would be extremely hard to stream - see point 1.

6. NBN is rolling out, but its expensive, thats the problem, a high res movie is 5Gb approx.. with a half hour episode at 720p taking 1.3Gb.. unlimited movies you say? how about limited to your download limit on NBN plans? 50gb, 10 movies without any other internet usage.. check out how expensive the NBN plans are currently, and they have a monopoly so don't expect them to come down anytime soon.

7. One off costs? I looked at their announcement, their operating revenue was still huge and the only reason they were positive income at all this FY was due to a cap raising in Q1.. After the capitulation this week, the market agrees - Cut costs or increase prices!

In closing, I agree that QFX _could_ be profitable, but it will need additional features, more subscribers, greater internet connectivity in australia and other options to seem less viable. One of these which would be greatly positive for QFX is the governments plan to get ISP's to track data and websites people use.. if that gets implemented you may see QFX rise quickly and strongly..

Until then, I personally don't see it happening.