Global Crossing Issues Statement Correcting Factual Inaccuracies in Wall
Street Journal Story
HAMILTON, Bermuda--(BUSINESS WIRE)--June 22, 2001--Global Crossing Ltd. (NYSE:GX - news), which provides
integrated telecommunications solutions over the world's most extensive global IP-based fiber optic network, today issued the
following statement correcting an article in today's Wall Street Journal.
``It is unfortunate that the Journal made some serious factual errors and misunderstood Global Crossing's business plan. Three
important factual errors are as follows:
Global Crossing is not ``burdened with about $14.4 billion in debt from financing to help build its network.'' The fact is that
Global Crossing has total debt of approximately $7.5 billion and its business plan is fully funded.
It is not true, as a headline says, that ``Global Crossing builds network but no one's buying.'' The fact is that Global Crossing
has reported approximately $5.8 billion of cash revenue in the past 12 months. Moreover, as stated in our press release
yesterday, current customers include carriers such as Deutsche Telekom, British Telecom, Telecom Italia and Qwest;
institutions such as SWIFT, the British Government and the U.S. Navy; and corporations such as JP Morgan Chase,
Goldman Sachs, Procter & Gamble, Merck, Sony, Pfizer, Microsoft, NEC, American Express, Yahoo! BB, CNBC
Europe, Fujitsu and Direct TV.
Global Crossing does not have 1,500 unanticipated competitors. The fact is that nobody else has a state-of-the art global
network linking 27 countries and over 200 major cities in Europe, North America, South America and Asia. Most of the
competitive networks under construction are having funding problems and may never be completed.
Regarding Global Crossing's business plan, the following facts should be understood:
Global Crossing is not heading in a ``far different'' direction than its original vision. It has long planned to move beyond a
wholesale ``carrier's carrier'' model to exploit the power of its global network to serve commercial customers and create
shareholder value.
The Company always expected to have competition - and thoroughly planned for it.
The Company always expected rapid price reductions for bandwidth, and all of its projections have assumed such declines.
Indeed, Global Crossing is the driver of lower prices, not the victim of them. Global Crossing is taking full advantage of its
lower cost structure to continuously improve the cost/value equation for customers by providing sophisticated services over
its seamless, wholly owned network |
