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


To: Ally who wrote (10024)2/25/2001 3:44:26 AM
From: Theophile  Read Replies (1) | Respond to of 15615
 
< Why continue to sell IRUs when it's not recurring revenue? >
Well...Why Not<g>? The bandwidth may simply expand to create more capacity in the future using the same fiber, so the reduction in capacity is possibly moot.
Selling IRUs alleviates GX from funding the lighting of the fiber, in many instances, and lays the onus of service onto the acquirer.
And if GX does not sell the IRU, someone else may. Why not carry their traffic too?
I am certain there are more reasons, but those are the ones I can think of from my basic comprehension of this bandwidth game.
Martin Thomas