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Technology Stocks : GX Investors Thread

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To: Sweet Ol who wrote (30)	8/20/2001 10:53:11 PM
From: BWAC	Read Replies (1) of 586

Let me follow up on that a little more as well. A lot of costs other than just equipment goes into the Property and Equipment number. Obviuosly you have the cost of the cable and fiber optic stuff and as raw undeployed components it has gone down in value some. Just as the Property and Equipment number reflects depreciation of around $1 Billion per year thereby reducing this 'net' number. But you also have the cost of labor capitalized that was directly attributable to physically building the initial network, laying the fiber, etc. (Last I checked labor costs were up) You have various real estate. You have various Landing and easement licenses and agreements. ----------------------------------------------- In no way shape or form could you possibly build GX's network, lay the fiber under the ocean, light it, connect it along all the route miles, build the support infrastructure, etc. for any less than $11.8 Billion today if you started from scratch. Remember from scratch. In need of funding to start. In a capital access constrained market. Not to even mention the interest cost you would incur and be unable to meet until such time as your "asset" was up and producing a few Billion $ in revenue. It can't be done.

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