<..SteveG's report from Monty...>
Got back very late and been swamped all day.
I will try to surmise, but this will be rough:
In addition to their CLEC buildout, the ATM from Goodnet and Frame Relay from PacNet, gives them a range of experience in edge/backbone technologies. They see decreasing cost for their national backbone, which will help increase their gros margins.
They are the last remaining national CLEC.
Their transition to P-MP won't be until 1999, though they will be trialing in DC this month. The need to guarantee 99.5% service requires that they thoroughly test out P-MP systems BEFORE deployment (unlike TGNT). Equipment suppliers won't really have tested product until 1999. But when they DO get it, then each building becomes a "sector", and can service 15-20 more buildings. So their "plant" target of 8000 building on P-P at end of 1999, becomes the equivalent of 15-20 times that.
They plan on $300MM cap spending in 98, roughly double 97. They will need to do another offering (debt? convertable?) and the street seems more than willing. In the auction, the #1 priority is to get what is needed. Since they have a lot already, they don't need to chase every market. One interesting point made, was anyone who wants to compete with WCII nationally, would HAVE to buy CVUS. Hmmmm.
Sorry, no time for more right now.
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