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

To: Robert Sheldon who wrote (2901)	10/27/1999 10:48:00 AM
From: TechMkt	Respond to of 15615

Robert, Excellent synopsis of the CC. I think we all appreciate your time and diligence. I remain VERY bullish on GBLX and I think we will see the mid 40's before the end of the year. By the, the Mid-Atlantic and Pan European Crossing will be open, generating even more demand. Fez

To: Robert Sheldon who wrote (2901)	10/27/1999 10:54:00 AM
From: Boplicity	Read Replies (1) \| Respond to of 15615

Thanks much Robert. Greg

To: Robert Sheldon who wrote (2901)	10/27/1999 11:40:00 AM
From: quidditch	Read Replies (1) \| Respond to of 15615

Thanks, Robert, as always. Some additional notes: 1- By early 2000, through traffic 13 European cities to US to Asia, all on GBLX pipes. 2- Management very excited by Racal/Telergy deals in giving proximity and access (rights of way acquired through Telergy deal) to significant prospective business customer base to connect their nets directly with GBLX network. 3- Robert mentioned that data traffic is triple digit and accelerating--over a six quarter period. 4- In re. LU preferences, working with LU, SUNW and Netscape on VOIP, lower cost and ready to roll out in 2000 (in what form, not specified). GBLX to be first such provider. 5- Clayton and Cohr confirm erosion of ARPU in FRO's commercial and carrier segments especially (upwards of 30% and more) but say volumes are increasing faster than pricing declines, so revenues increasing. 6- [One slight concern: EBITDA calculated on cash flow, notwithstanding FASB change on revenue recognition of dark fiber, results in deferral of revenue recognition, I think $17 million: will lenders object to this position re. coverage ratio covenants?] 7- Existing $2 billion backlog, $1 billion GBLX--recognized over twoto three years, $1 billion FRO. 8- Demand for bandwith ("our customers want it and we've got it") is so strong that management perceives no resistance yet from carriers who are customers but who are also competitors in data and net services/farms with FRO. 9- Racal acquisition to be financed by loan secured by, and recourse only to, Racal assets + $500 million GBLX cash. 10- GBLX unrestricted funds + credit lines = $600 million to $700 million. 11- Acquisitions--always active. Steve