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

To: Raymond Duray who wrote (1540)	8/23/1999 2:37:00 PM
From: Robert Sheldon	Read Replies (2) \| Respond to of 15615

It begs the further question as to how the rate price discount of 51%/PA was arrived at? The following site details the decline in pricing on a monthly basis (note use of the composite world index due to GBLX's presence). I sampled the data to arrive at a monthly decline figure and then applied that to a quarterly number (-16.3%). That number is then applied on an annual basis (-51%). band-x.com band-x.com You may have to register to use (it's free). Would it not be prudent to think that the rate of discounting will accelerate as we go forward? Or should we view this rather as a capacity increase that will occur due to more lambdas being applied through each fiber? And thus the value of each fiber decreasing as its utility increases? Just wondering. It is virtually impossible to guess what sort of a decline we may see in pricing. There have been so many burps in the data, that speculation is irrelevant. I have spoken with industry folks that agree that ~50% decline per year is reasonable. Remember the metrics utilized for this measurement may not be relevant in just a few years. Perhaps Frank could add some thoughts to your question.