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Technology Stocks : Global Crossing - GX (formerly GBLX)

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To: Robert Sheldon who wrote (2256)10/1/1999 7:56:00 PM
From: Thomas Tam  Read Replies (3) of 15615
 
OT sort of, with GBLX selling bandwidth to possibly every telco in the future, and the thought of voice ultimately being free (in a sense), just how much bandwidth is required to make a voice call?

You have AT&T charging 7 cents a minute with a $2.50 monthly charge for nationwide long distance. As a start-up long distance company, if you buy a single STM (? 155 Mbps) from GBLX for X dollars for say 25 years, could you recoup the costs and profit at say 5 cents a minute or 4 or 3? Seems AT&T will cost-cut and cost-cut, but with antiquated lines, they will not be able to compete unless they buy better capacity. In the end who owns the best network locally and internationally? Locally possibly QWST or LVLT or GBLX, but from an international point of view, Winnick makes a very strong point that others just can not compete.

Eventually, GBLX will dominate with its ability to provide the conduit for others to carry out the price war which will only increase utilization and increase the need for bandwidth.

Just some thoughts, but I would like to know if anyone has info regarding the bandwith required for a simple voice call.

Later
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