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

To: AurumRabosa who wrote (1999)	9/20/1999 12:34:00 PM
From: Robert Sheldon	Read Replies (1) \| Respond to of 15615

Wasn't the point of the Barron's comments regarding GBLX directed at how they'll be forced to report future earnings streams based on the sale of "dark fiber" due to an accounting rule change? That statement was one of many that lead to false conclusions. The accounting rule change will have no effect on GBLX. I fail to see the similarities. It is a bit abstract, but my thought was this: Another focus of the GBLX article was how the decline in non-voice rates was going to reduce GBLX's business model to rubble (which it won't – this is actually a key to GBLX's buoyant success). How interesting that in one Barron's article they state that the cost/revenue structure of GBLX will run it out of business and in the recent WCOM article they say data and other non-voice services will drive profits. BUT WAIT – THERES MORE! Undersea cable is only 5% of that deployed terrestrially. Would not the place for margin compression and business destruction reside where a service is most abundant? So which is it? Will non-voice services drive profits, or drive folks out of business from margin compression? I'm sorry, Barron's can not have it both ways. In the GBLX article Barron's was wrong . . . at least the WCOM article is on the right track. Oh well, as time continues to tick away we move closer to an answer.