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

To: CF Rebel who wrote (4072)	1/21/2000 3:20:00 PM
From: Robert Sheldon	Read Replies (1) \| Respond to of 15615

Nice link. Good to see that the folks at QWST have higher expectations for network revenue (for every $1 in hosting generates $4 to $7 in network revenue) than I do . . . The numbers I've been working with are $3 to $5 for every $1 in hosting . . . fun fun fun. The street is blinded by spectrum they can not see.

To: CF Rebel who wrote (4072)	1/21/2000 6:58:00 PM
From: Teddy	Read Replies (1) \| Respond to of 15615

Briefing note on GBLX posted by John Erb on the Qworst thread: (i have no comment) This was from Briefing.com on GBLX: Global Crossing (GBLX) 53 3/8 +1/16: Now the Atlantic undersea cable has the same speed capability as land based fiber networks. Global Crossing announced today that their undersea cable now has 2.5 Gbps capacity. Any network is only as fast as its slowest link, as users of 28.8 KBps modems can tell you. What today's development means is that the undersea fiber optic link is no longer a bottleneck for traffic between Europe and the US, if you are a Global Crossing customer. What Global Crossing does is lease circuit capacity to business users. An business user who wants better global connectivity can now get it from Global Crossing. *One of the great things about Global Crossing's business model is that adding new circuit capacity is much cheaper than building new networks. So establishing yourself early as a high-speed vendor gives you a cost advantage over competitors. The first customers pay the higher rates of buying a circuit; later customers can pay a lower price for a circuit because the costs of adding new capacity are lower. The economics are such that the later, additional circuits are actually more profitable. If the competitor is still building out a first version of a network, it is harder for them to charge a competitive price. This declining price curve is a key competitive edge for the first mover in fiber networks.* Global Crossing understands this concept deeply and has been aggressive in building capacity. A prime benefactor from this is Cisco (CSCO), whom Global Crossing explicitly promotes in the press release, giving unusual praise to what is essentially a vendor. All in all, it is another demonstration of Global Crossing's solid aggressive business plan. At some point, consolidation is likely in the fiber network space. Global Crossing is getting big enough to be seen as either acquirer or acquiree. Either way, it just keeps making itself more valuable in the long run, particularly as the next era of the internet will demand more bandwidth. - RVG