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

To: DWB who wrote (11175)	5/13/2001 12:48:55 AM
From: TechMkt	Read Replies (1) \| Respond to of 15615

Over the next few days I'll try and post some interesting extracts from the GX 10-K I just received. Some of it may be old news, but hopefully pertinent. Fez _______________________ " We previously entered into an agreement with Telergy, Inc. under which we have acquired 96 strands of fiber throughout the New York area on Telergy's 100-mile New York City network. In addition, the agreement provides us with an ownership position in Telergy and representation on its board of directors. GX and Telergy have also agreed to explore co-build opportunities in the northeastern US and to seek to utilize the Telergy network as needed for redundancy and termination of GX traffic in certain areas."

To: DWB who wrote (11175)	5/13/2001 2:44:11 AM
From: Spekulatius	Respond to of 15615

>> Can you walk me through that? With GX, the plan is pricing pressure... <<. Well, i do not think that the British embassies will renegotiate their deal but: are the prices for the service contracts fixed or are they subject to (spot) market fluctuations for bandwith? As far as Exodus is concerned, i think their is a good chance that their business model does not work and they will go belly up and they may end up being a liability LT for GX. GX does have competition: Q, TCM LVLT, CWP do have a global reach. LVLT is likely to sink under their debt load but this does not mean that the company won't be around. After a debt restructuring, the company will be owned by bond holders and may just do fine, while stockholders loose everything. I agree that companies like Teligent & Winstar won't be around in three years. As far as pricing and demand goes, it depends all on the price - demand elasticity curve. Decreasing the price does indeed increase demand - bandwith-unit wise but what about $ units? Another uncertainty is the free cash flow when the network is build out. Will it ever be build out? New gear with higher capacity is and will be developed in the future. How much will GX have to invest after Y2002 to stay competitive? What will the free cash flow be?