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

To: gruetz who wrote (10650)	4/16/2001 2:19:48 PM
From: Theophile	Read Replies (1) \| Respond to of 15615

RE: secrecy about signups: I believe that letting the competition know what advances one has made into their prospective customer list are best not revealed till absolutely necessary, or until strategic counter-measures by the competition have been minimized. I do not believe GX is losing anything of its particular targeted customer base (or very little, anyway) by signing on carriers. If anything, this only substantiates credibility for GX products. Martin Thomas

To: gruetz who wrote (10650)	4/16/2001 9:25:16 PM
From: Theophile	Read Replies (1) \| Respond to of 15615

A rule of thumb in the subsea business is that each 4x increase in unit volume yields only a 3x increase in price (e.g. if a single STM-1 was priced at $1 million, an STM-4 would result in a unit price of $750,000, a STM-16 would result in a unit price of about $560,000 and so on). The multiwavelength transatlantic presales recently announced by TyCom and Flag suggest to us that demand for larger volume orders is up, and consequently we believe that unit pricing on a volume adjusted basis is lower than previously expected, although this is somewhat mitigated by higher volumes The above is from the TCM report, and I believe it answers a good portion of the questions regarding sales to MNCs vs sales to Carriers. Obviously, with the huge capacity being installed by TCM, there is greater headroom in allowing the carrier's to occupy bandwidth and still have sufficient capacity for sales to MCNs. I wonder how that would work, selling to a wholesaler as well as to their customers. I recognize that GX felt this was an issue by their holding GCTR and selling bandwidth to other webhosters, as well. Also of interest from the TCM report was the increased activity for new cables. Somebody does not feel there exists a fiber glut, I guess. Martin Thomas