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

To: Robert Sheldon who wrote (4044)	1/18/2000 11:38:00 AM
From: JakeStraw	Respond to of 15615

Global Crossing and Bell Canada Subsidiary Forge Agreement ROCHESTER, N.Y.--(BUSINESS WIRE)--Jan. 18, 2000-- Global Crossing & BCE Nexxia Enter Two-Way Agreement to Provide Leading Network Technology and Capacity Across the United States & Canada Additional OC-192 Capacity Scheduled for Commercial Service in January 2000 Global Crossing Ltd. (Nasdaq: GBLX - news) and BCE Nexxia today announced a three-year services agreement valued at $24 million. Under the agreement, Global Crossing and BCE Nexxia, Canada's leading provider of integrated communications solutions to enterprise customers and service providers across North America, will provide each other with network services to meet the global needs of their respective customers. Global Crossing will supply BCE Nexxia with network, private line and IP services to enhance BCE Nexxia's existing points of presence in the U.S. and Canadian markets. BCE Nexxia will supply Global Crossing with Canadian termination services. The agreement will enable Global Crossing and BCE Nexxia to expand their IP-broadband networks to connect to over 200 key business destinations throughout the United States and Canada. ''This agreement with Global Crossing provides access for our customers to one of the most advanced IP networks in the United States,'' said Bill Enns, vice president, Wholesale Marketing, for BCE Nexxia. ''By leveraging Global Crossing's North American Crossing network to extend our services throughout North America, BCE Nexxia will continue to bring businesses the highest standards of connectivity needed to remain competitive in today's global economy.'' ''Leading providers such as BCE Nexxia extend their international reach by partnering with Global Crossing to supply not only voice, but a full range of sophisticated data products to customers around the globe,'' said Brian V. Fitzpatrick, president of North American Carrier Operations for Global Crossing. ''Service providers using Global Crossing's network have access to the most reliable, advanced and cost-effective network infrastructure.'' BCE Nexxia joins the growing global roster of wholesale customers such as Telstra, Telecom Italia, Americatel, Telecom New Zealand, KDD and Telia North America that are using Global Crossing's 20,000-route mile fiber optic ring network in the United States. The network connects over 120 major U.S. metropolitan areas and includes a Cisco-powered IP network currently operating at OC-48 -- 2.5 Gbps (gigabits per second). In addition to several layers of OC-48, and its first OC-192 put into production last fall, Global Crossing is currently lighting up equipment that will add two OC-192s (20 Gbps) of ring-protected, SONET capacity to its North American Crossing network from coast to coast. Global Crossing will initiate commercial service over this new capacity by the end of the month and will add additional OC-192 capacity in the second and third quarters of this year to meet the growing demand for bandwidth. About BCE Nexxia BCE Nexxia is a leading provider of innovative and integrated communications solutions to businesses in Canada and in the United States. Leveraging its state of the art IP-Broadband network, the strength and expertise of the BCE family of companies and strategic partnerships with industry leaders such as Nortel Networks and Cisco, BCE Nexxia provides its customers with the cost-effective, next generation services they need to compete in the global marketplace. BCE Nexxia's Internet web site is located at www.bcenexxia.com. About Global Crossing Global Crossing Ltd. (Nasdaq: GBLX - news) is building, and offering services over, the world's first global fiber optic network with 97,200 announced route miles, serving five continents, 24 countries and more than 200 major cities. The Global Crossing Network and its telecommunications and Internet product offerings will be available to over 80% of the world's international communications traffic. Global Crossing hosts more than 300 of the top Internet brands at its web hosting division, GlobalCenter. Among the brands are some of the largest and most densely trafficked sites on the Web, including Yahoo!, The Motley Fool, Ziff Davis, MP3.com and eToys. Global Crossing's operations are headquartered in Hamilton, Bermuda, with principal offices in Los Angeles, California; London, England; Morristown, New Jersey; and Rochester, New York. Statements made in this press release that state Global Crossing Ltd.'s or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause Global Crossing Ltd.'s actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; changes in the nature of telecommunications regulation in the United States and other countries; changes in business strategy; the successful integration of newly acquired businesses; the impact of technological change; and other risks referenced from time to time in Global Crossing Ltd.'s filings with the Securities and Exchange Commission. -------------------------------------------------------------------------------- Contact: Global Crossing Mary Catharine Moore, 716/777-6403 mary_c_moore@globalcrossing.com or BCE Nexxia Don Hogarth, 416/581-3311 donald.hogarth@bell.ca

To: Robert Sheldon who wrote (4044)	1/18/2000 11:52:00 AM
From: Frank A. Coluccio	Respond to of 15615

One of the first thing that any large firm looks for before changing the way they do business, as in re-engineering the delivery of services, is to ensure that the environment that they are going into is robust enough to support them, even when one or two suppliers go down. In the case of going global over the 'net, this means having a plethora of choices to pick from and to fall back on for any number of reasons, whether they be from failures which are catastrophic, or due to political tensions, or otherwise. With more players crossing ponds and pulling new silica behind them, large businesses --indeed, entire industry sectors-- will be more comfortable and far more likely to "make the switch" to a broadband paradigm from brick and mortar, in other words, than with a select few carriers who have the required bandwidth, but whose moment-to-moment performance and availability depend on the serendipity of fishing trawler movements on the continental shelves. Television would be a hell of a thing, if there were but one station to watch. I doubt that TVs would be half as plentiful as they are today, if that were the case. It'll be some time to come (unlikely, though) before we can say that there are "57 channels and nothing to watch," when it comes to submarine cable traffic supporting international commerce and consumer needs.

To: Robert Sheldon who wrote (4044)	1/18/2000 1:06:00 PM
From: JDN	Read Replies (1) \| Respond to of 15615

Dear robert: So why is GBLX down today? haha JDN

To: Robert Sheldon who wrote (4044)	1/18/2000 6:50:00 PM
From: Teddy	Read Replies (2) \| Respond to of 15615

here's some more of Salomon Smith Barney's Grub report today. (laws against posting the whole thing) ~ January 18, 2000 01/18/00 Global Crossing Ltd. (GBLX $51.18,1-S,Tgt $70.00) Jack B. Grub ---------------- Tyco has announced that it will stop building and maintaining subsea fiber systems for other folks and instead actually build a subsea system for itself which it will operate as a carrier's carrier. Tyco will honor existing new build and maintenance contracts, in particular, for Level 3, Hybernia, Telefonica, and GBLX. Tyco will also honor contracts with BT for a north-south Asia route and Telstra for an Australia-Japan route. Tyco is planning on building a global subsea system which will span the Atlantic go down the Atlantic alongside Europe and cut across the Mediterranean, have a Baltic ring as well as a Pacific ring (see table below). NETWORK BUILDOUT PROFILE System Build Used in the TSSL View System Name Yr of RFPA Description US-UK Ring 2001 New York to London Big Pac Ring 2002 Seattle to Tokyo to Guam to Hawaii to LA Hong Kong-Guam 2002 Hong Kong to Guam UK-SP-PT-UK 2002 London to Madrid to Lisbon PT-SP-IT-PT 2002 Lisbon to Barcelona to Rome to Sicily Italy-Israel Ring 2002 Sicily to Athens to Marmaris(Turkey) to Tel Aviv to Alexandria(Egypt) Baltic Ring 2002 Hamburg to Copenhagen to Stockholm to Helsinki to St. Petersburg to Gdansk UK-FR 2002 London to Paris UK-Germany 2002 London to Hamburg The planned network will have 64 wavelengths or windows with an OC-192 backbone and 4 fiber pairs resulting in a 2 1/2 terabit total capacity. The network will have 25 landing sites and 19 telehouses where Tyco will do co-location and other services. As far as terrestrial backbone is concerned, we expect Tyco through accommodation of rights of ways dark-fiber purchases, IRUs and swaps will stitch together terrestrial backbones that connect to the subsea system. This entire project should be done by end of 2002 (with the US-UK Atlantic ring done in 2001)--meaning Tyco will be operational for the full-year 2003. We expect Tyco to initially be a carrier's carrier with its customers being telecom carriers around the world, ASPs, ISPs, companies such as network caching companies and web-hosters and potentially some high-end corporate applications. RAMIFICATIONS OF THIS HUGELY POSITIVELY FOR GLOBAL CROSSING We view this move by Tyco as massively positive for GBLX for several reasons: 1) Tyco is the ultimate insider in that they are the leading builders of subsea systems and as such, has a very good read on the demand forecast for capacity. The fact that they are exiting their own business (which they were very good at) to go into the business of operating a subsea network tells you something about their view of how great the business is. As a corollary to this, it is clear that Tyco fundamentally believes that demand for bandwidth, especially on subsea routes, will continue to be explosive since it will not be until 2003, that Tyco really is up and running. Thus, this clearly underscores the demand potential for GBLX as well as underscores the notion that the price-demand relationship will continue to be a positive one for carriers. Specifically, given the declining cost/price nature of the business, by the time Tyco is fully operational, price points for STM1s will be one-tenth of what they were in 1998. Yet, Tyco believes (as we do also) that they will get a great return or investment. This is because demand for subsea bandwidth is doubling every year with capacity sales migrating upward from STM1s to STM64s to complete wavelengths. Moreover, network businesses are extremely leverageable with very high incremental ROIs. 2) Tyco, being one of the 2 leading builders of subsea systems along with Alcatel, is now taking themselves out of the supply chain outside of the existing contracts they will honor. Thus, any Tom, Dick and Harry who is running around with a business plan trying to get financing for a subsea system (of which there are many of these initiatives) will have a very difficult time getting financing since there will be nobody to build a system (we doubt that Alcatel could handle all of the potential demand for subsea systems). Thus, from a GBLX perspective, even with the Tyco network coming on board in 2003, the fact is a major source of supply has been eliminated. 3) Finally, GBLX continues to be much more commercially-oriented and by 2003, it is clear that the majority of their revenues will be coming from commercial customers rather that carrier customers. Thus, just like what happened in other market segments in telecom, voids get left that others fill. In this instance, we think Tyco will be in a perfect position to fill the void of a carrier's carrier of subsea capacity that will be left largely by GBLX which by 2003 will be a much more commercially-oriented enterprise. It also should be noted that GBLX bought the global marine part of Cable and Wireless which means GBLX has their own ships for in-house maintenance thus, are not at all vulnerable to Tyco being out of the market for maintaining subsea systems. The bottom line is Tyco is an extremely smart company, is the leading builder of subsea systems, is the ultimate insider in terms of being privy to demand forecast and they decided at this stage that it makes sense to go into the business of running subsea network (which we believe will result in tremendous value creation for Tyco). Tyco realizes that there are 50 terrestoral networks operating or being built worldwide to go along with thousands of ASPs, ISPs, etc. developing applications which will drive bandwidth demand. This is in contrast to 17 proposed subsea systems of which only 8 are actually under way and given the nature of the beast, no subsea system can approach the ultimate capacity of a terrestoral system (subsea systems have 4-8 fiber pairs versus 144 for terrestoral and subsea systems will never carry as many wavelengths as terrestoral networks). Thus, capacity in subsea networks will lag demand even to a greater degree than supply lags demand on terrestoral networks. This is a tremendous endorsement of GBLX and competitively, we believe, that GBLX is far better off with a Tyco running a carrier's carrier system in 2003 than they would have been if Tyco was there to supply everybody who wanted to build a subsea system. NET/NET: We continue to view GBLX as having one of the best set of assets anywhere in the world of telecom. Their core business of running a subsea network has been reinforced by a very smart insider and we reiterate our $70 Price Target.