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Politics : Ask Michael Burke

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To: Freedom Fighter who wrote (85451)	11/15/2000 12:23:17 AM
From: Spekulatius	Read Replies (2) of 132070

Wayne - I do not believe that LVLT networks expansion is fully funded. They have got about 6B$ in cash and this will last for 4 quarters only given the current capex and burn rate. With respect to their network buildup - they seem to be behind their competitors GX and Q. Fromall the bandwith players, I would prefer to invest in GX at this point and given the current stock prices. I prefer, GX because it is the only bandwith player that really is fully funded. GX capex rate actually will peak this year and is expected to wind down next year. OK, I don't like their greedy management but they are astute dealmakers. GX telecom revenues are currently more than 10X higher than LVLT (if the LVLT dark fiber sales are subtracted) and I think this lead is important. On the other hand, LVLT decision to design the pure IP network without SONET overlay may give them a cost advantage but I am not sure how significant this will be.

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