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Technology Stocks : Global Crossing - GX (formerly GBLX)
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To: PaperChase who wrote (2644)10/13/1999 6:45:00 PM
From: Marty R  Read Replies (1) of 15615
 
It may appear that they have fixed costs for laying the line. However, they recently cut their time of laying a segment by several months ... so fixed costs can be decreased through efficiency.

Also, the technology continues to improve as far as the amount of data throughput they have on this same fiber they've already layed. So with these improvements (with more to come) they increase their capacity without laying another mile of fiber.

On the other hand the fixed costs that do exist are to GBLX's advantage. This is a barrier to competition.

These are just my observations. I am by no means an expert on this company or subject.

marty

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