hi Tom,
RE: From SSB report...
<<Regarding LVLT, we fully expect that AC-2 will be up and running by the
end of 2001 vs. the early part of 2001.>>
Was that intended to read "end of 2000 vs. the early part of 2001"?
Significant difference...
Yeah, the wording there is kinda confusing because there are 2 different cables (with
different completion dates. SSB was kinda confusing to read because they are still calling
the cable anounced in March AC-2 and not calling the LVLT cable anything.
I listened to the CC a couple of times and think i can explain it a least a little better:
On March 24th, 1999 Global Crossing announced that they were going to build a second
cable accross the Atlantic Ocean and that cable would be called AC-2 ("AC" is for
Atlantic Crossing. "-2" is because Global Crossing currently owns an opperates one cable
accross the Atlantic Ocean: "AC-1")
At that time, they said AC-2 would be a 4 fiber pair, 2.5 Terabit-Per-Second system
that would cost about $500-Million to build. They said service on AC-2 was scheduled to
commence in the first quarter of 2001.
Last week, Global Crossing announced that they signed a deal to own 2 fibre pairs on a 4
pair system that LVLT previously announced. They are going to call that system AC-2
and change the name of the one announced in March to AC-3.
New AC-2 (the LVLT cable) will be in service September 2000.
They plan to build AC-3 (what they called AC-2 in March), but moved the completion
date from Q1 2001 to sometime before the end of 2001 and the capasity will be larger.
In the CC, they explained 2 reasons why the are doing this:
1.They just completed a couple of very large capasity deals, so they need more Atlantic
capasity as soon as posible.
2. They think that if they wait a couple of months to start their next cable (the AC-2 that
was announced in March, but now to be called AC-3) technology will allow them more
capasity for a lower price.
SSB was kinda confusing to read because they are still calling the cable anounced in
March AC-2 and not calling the LVLT cable anything.
Here are 2 paragraph?s from SSB, i've added the "new" correct names for each cable in
bold italics to try to make it less confusing:
===================
Regarding LVLT(AC-2), we fully expect that AC-2
(AC-3)will be up and running by the
end of 2001 vs. the early part of 2001. GBLX is opportunistically taking
2 fiber pairs on the LVLT(AC-2) network that is being built which will
give
them an extra 640 Gbps of capacity or an extra 4,000 STM-1s which then
gives GBLX the luxary of perhaps of making a more prudent technological
choice (i.e. 5 terabit vs 2.4 terabit) for AC-2(AC-3). The 640 Gbps of
extra
capacity that GBLX will get from LVLT(AC-2) will easily bridge them
from the
time that AC-2 would have been up from the time AC-2(AC-3 will
eventually go
up with the effect of the probably at the end of the day more prudently
spending capital. LVLT(the company) is going to buy capacity off of
AC-1 for
redundacy of their fiber system. The bottom line is that far from being
squeemish about demand we actually think this indicates that GBLX is
bullish on demand because otherwise, GBLX would have built their own AC-2
at 2.5 terabits. Instead, they feel compelled to take 640 Gbps
now(AC-2) and
probably will end up builidng a 5 terabit system for AC-2(AC-3).
AGREEMENT WITH LEVEL 3
Given very robust demand seen across the Atlantic (GBLX is selling
multiple STM-16 contracts (on AC-1)and is gaining multinational customers with its
product suite including international private line) GBLX yesterday
announced an agreement to jointly build LVLT's previously announced
Atlantic undersea fiber build. The cable build is a four fiber pair 1.28
terabit system that will be ready for service in September 2000. GBLX
and LVLT will each own 2 fiber pairs. (GBLX will call this
AC-2)This provides GBLX with additional
Atlantic capacity in September 2000 and will allow GBLX to push out its
AC-2(AC-3) build which was originally expected in Q1'2001 and take
advantage of
any technological advances in the subsea area.
=================
Hope that makes it clearer.
Also, the replay of the CC is still available at
1 800 633 8284
pass code 14337581
And another thing. While i was at the web site, i noticed a couple of press releases from
Wednessday about about Global Crossing UK:
globalcrossing.com
globalcrossing.com |
