Wow, call was a lot shorter this Q, I won't have to stay up so late.
Only thing that surprised me, and I must have missed it somewhere, is that you can just sign up for the free local under project Milenium. I thought you had to take the whole bag of LD, data, internet, call forwarding, etc and got your local for free. No wonder it's being so well received! I wonder how many of these new customers are signing up for the add ons?
Bernard, re "Any comment on the cash position, which declined to
$473M, with $103M Capex this last Q?"
It looks like they built out faster, or at least spent more, than they had planned. Seems like they said a while back capex would be 300M for the next year. I think people were looking for a capex this Q of around $75M. At any rate, figuring capex of around $300M for the next 4 quarters, EBITDA losses of close to $200M, and interest expenses of around $125M, they probably would have been doing good to make it two more quarters, or only into the second quarter of next year. Looks like they could have run out of money a lot sooner than expected. Maybe that was a driving reason we saw 10 1/4.
Ali, WinStar's margins;
resold line 5 - 15%, 67% of WinStar's current lines
on-switch 25 - 30%, 19% of current lines
on-net 60 - 65%, 18% of current lines
If anybody can explain to me (in simple terms so I can understand it, please) why WinStar only has 37% of their lines routing thru their own switches I'd really appreciate it. |
