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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: lazarre who wrote (1207)	6/19/1999 5:40:00 PM
From: Frank A. Coluccio	Respond to of 15615

Hi Lazzare, thanks. I just now copied an article from BCR to the Last Mile thread that portends the issues going forward in carrier architectures. In it, I bolded out the following: techstocks.com "Champa [fac edit: Mike Champa is the President and CEO of Omnia, a company recently acquired by Ciena] conceded there's a major obstacle to this goal, and it's not technology based. If and when the current tangle of "telco plumbing" goes, "You're basically destroying the careers of 80 percent of the people that work for the ILECs," Champa noted." I happen to believe that the potential for what he stated may be true. And if it [upgrades] came to pass, then shareholders and other stakeholders (with the exception of those currently employed) would all gain. The inhibitors, however, stem from self-serving interests from within the organization, as would be expected in most oganizations. When you lose the lower echelon of equipment plug-in board specialists, managers are no longer needed, VP slots get consolidated, and operating areas become virtualized through automation. The entire fabric, in turn, gets turned on its head, before giving way to a new life form. There are too many vested interests in USW and in the other ILECs (as well as in the regulatory bodies governing them) who would see to it that this never happens, or at least not without a fight, tacit and unspoken as it would be, and not without inflicting great expense to a would-be acquirer whose intentions and goals would undoubtedly lie elsewhere. About eight years ago, USW underwent a re-engineering effort with the hope of revamping their back offices and billing systems, which turned out to be a $800 Million debacle (that I don't think they ever really fully made good or recovered from) by their own estimates, to make a point. And that one was initiated internally. FRO's Internet-based Global Center operations, on the other hand, is already that new life form in many ways. I have come to learn a great deal about their efficacy and standing in the ranks of Top Tier backbone providers, and I must say that I am more impressed with them now than I was upon first hearing the news of their takeout by GBLX, initially. They are regarded highly by such firms as above.net and certain 'net software tool designers as being among the most capable new organizations out there, right now. The other carriers you've mentioned I'm not so sure about. They are regionalized, to a great extent, where their facilities based operations are concerned, and some of their routes, as well as some of their services, run parallel and redundant to some of their would-be acquirers. I'd have to study their overlays more thoroughly as well as their financial profiles, something I've not done for a while, anyway. On the surface, I'd say that at some point in the near to intermediate future (over the next two years) they absolutely must be acquired while the possibilities still exist for them to be regarded as premium properties. Otherwise, they will be faced with the prospect of having to do mega deals later on themselves, or consolidate themselves, and vie for a top niche among the larger players. Other comments on the regionals, as well as the remainder of the above, are welcome. Regards, Frank Coluccio