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


To: jopawa who wrote (11661)6/6/2001 12:53:48 PM
From: jopawa  Read Replies (1) | Respond to of 15615
 
no date on this cribbed post from RB, donna reeves is the vp in charge of the media and entertainment division of GX i think:

The Expanding Digital Universe: Ready for Prime Time
by Donna Reeves

A decade ago, the promise of convergence between the Internet, high definition television, and other nascent technologies seemed just around the corner. The media and entertainment industry imagined a Jetson-esque world where computer-generated interactive video-on-demand could be sent instantly from content provider to consumer at the touch of a button. Production and distribution costs would plummet and time-to-market would dramatically accelerate. Most industry observers still forecast those developments, but over the past few years as technology drove efficiencies in other industries, for media and entertainment the pace of change was frustratingly slow. The ideas were there, but the technological infrastructure just wasn’t available – until now. The future that was once imagined has been tested, and it is both real and reliable – reaching standards of speed and quality many skeptics may have thought impossible.

In February 2001 Global Crossing successfully transmitted uncompressed HDTV and SDTV video between Japan and the U.S. over its fiber network. The content included pre-recorded Olympic opening ceremony footage, a baseball game, and various scenic views. Using STM-4C circuits to transmit SDTV at 270Mbps and HDTV at 1.5Gbps, the programming was transmitted more than 12,400 miles from Tokyo to Seattle with outstanding broadcast quality and no significant delays. Most importantly, it demonstrated to the industry that fiber-optic cable is a less expensive, more reliable, higher-quality alternative to satellites for real-time video transmission. Skeptics who had said “I’ll believe it when I see it” were suddenly seeing the future before their eyes.

Currently, satellites are the most common medium used to transmit live video signals across the Pacific. Since only a limited amount of transponder space is available, common practice is to compress an NTSC signal to 45 MBps for transmission -- compression that affects picture quality.

In order to enable more stability when broadcasting high-quality video, such as overseas major league sports broadcasts, in real-time, the answer is to produce bandwidth-intensive uncompressed video transmissions. The only system that can handle the need for such capacity is a super-high-speed fiber-optic network.

Live Sports Across the World Via Fiber: A Pipe Dream?
The industry has now been there and done that – successfully. In April 2001, NHK Japan Broadcasting Corporation sent a high definition transmission of the Seattle Mariners opening day game via fiber across the Pacific for live broadcast in Japan. Other games have followed and the broadcasts are scheduled to continue all season.

The Olympics: A Case Study for the Pace of Change

Remember the 1996 Olympics in Atlanta? Due to prohibitive costs of sending signals from Atlanta to Japan, the sole HD broadcaster in the world (NHK) could only broadcast the opening and closing ceremonies live. Production was digital but the broadcast was analog, as was the HD network. The live HD signal was compressed and bounced via satellite from Atlanta to a downlink in California, uplinked to a Pacific transponder, downlinked again in Japan and uplinked once again to the NHK satellite that delivered the signal to the approximately 500,000 Japanese homes with high definition televisions.

In other homes, state of the art modems on new PC's were 28.8k, streaming media was a fantasy, and the various Olympic websites promised no real-time pictures or data. Under the volume of thousands of hits, website access was often slow and difficult. The same access difficulties faced the press and officials as they logged on to the digital real-time data transmissions set up for them.

Salt Lake City's 2002 Olympics will reflect the tremendous capabilities of the digital age. All production will be digital, in both HD and NTSC. The Broadcast Center will feed multiple High Definition and SDTV signals to broadcasters in the U.S., Asia, Europe and Latin America. Some are being sent to their final destination via all-fiber networks, some via hybrid fiber/satellite combinations.

Numerous Olympic web sites around the world will allow millions to log on simultaneously for streaming audio and video, to download stills, to get real time data and background information as their nation's athletes compete, even to buy Olympic memorabilia on-line. There will be constant real-time data transmissions from every venue to the Broadcast Center, the IOC office, the Press Center, to visitors centers and to other sites around the world. There’s no way to predict what other technologies may also be developed. After all, there are ten months to go, and the expansion of the digital universe has surprised us before.

What has made this expansion possible? Among the factors: the explosive growth of bandwidth made available by fiber, the reductions in transmission, storage and other user costs made possible by fiber's ubiquity and the rapid spread of broadband applications now being put into place. As the media and entertainment industry moves toward more and more digitization of content, participants throughout the industry realize they can create, collaborate on, produce, store, and distribute this content in a completely digital environment using computers, applications, servers, and networks.

Global Crossing's worldwide fiber-optic network is in the middle of this revolution, providing the foundation on which this universe is being built. Now, with the creation of its Media and Entertainment Division, Global Crossing will also take the lead in providing the industry critical value-added services for the digital age.

Global Crossing Media and Entertainment: Finally, the Future is Now

It's the 21st century and we're in the middle of a sea change. We know the future is digital: it’s interactive, it’s bandwidth-intensive, it’s user-customized.

And it’s coming fast.

Signs of the times:

FCC mandate for digital broadcasting by 2006

Similar mandates and initiatives around the world: for example Japan, Canada, Europe, and Latin America

Growth of fiber transmission of uncompressed high definition and standard television signals to digital networks

Increased integration of content between television and the Web (an estimated 50% of all websites will have streaming media components by the end of 2001)

Faster than expected rise in popularity of DVD technology among consumers

Proliferation of broadband and declining cost of fiber connectivity and storage

Firsts tests of digital transmission of feature films directly to theaters

Despite these indisputable trends, there are many unknowns. How quickly will the media and entertainment industry need to change? Probably more quickly than we anticipate. Where will the greatest future demands for digital services be? Perhaps in segments that barely exist today. Where will the greatest revenue opportunities be? We can only make educated guesses.

The one constant in this universe is that content is gold. And when that content -- the film, video and music libraries that are the foundation of the media and entertainment business – becomes "digital assets," content providers must radically rethink their business models to reflect that new reality. There are two key drivers for change in the business and revenue side of the industry:

The reality that successful companies must collaborate with complementary service providers to stay on the leading edge of digitization

The need for alliances with true partners and collaborators, not just suppliers

Global Crossing is poised to become just such a partner to the media and entertainment industry. Much more than a traditional service provider, Global Crossing has made it a point to understand the concerns of the M&E industry in the digital age. In response, it has created its Media and Entertainment division specifically to build an Extranet for the industry.

What It Means To Be “On-Net”
A virtual community of industry-leading companies operating over a secure shared infrastructure, the Media and Entertainment Extranet will offer a complete package of dedicated M&E-specific services, with Global Crossing’s core fiber network as its cornerstone. For the industry, it will mean realizing the same benefits that would normally be afforded by a private network along with greater quality of service, security, reliability, and scalability – at a much lower cost. The Extranet provides a customizable, seamless, fully managed end-to-end communications platform to facilitate content sharing within the media and entertainment sphere while protecting the exclusivity of the data speeding through the network of fiber, routers and servers. Fast, reliable, secure and cost-efficient – and tailored to the needs of media and entertainment companies.

Extranet Components: The Media Exchange

The Media Exchange segment of the Media and Entertainment Extranet is designed to address the pressing concerns facing content providers as they expand their digital operations:

Movement of existing non-digital assets to the digital universe

Protection against piracy: securing content during both delivery and storage

Integration of programming, distribution, and billing needs

On-demand delivery protocols-- enabling customers to self-select and access high quality, multimedia content anytime, anywhere

To address these issues, the Media Exchange provides clients with access to a range of applications, customizable as needed, including these basic components:

Encoding/Encryption

Security: firewall, sniffer, watermarking

Digital Asset Management: database, search, indexing, cataloging

Production: editing, duplication, special effects

Transaction Engines: tracking, billing, etc.

More than that, the Media Exchange provides its clients with the expertise and collaboration of the Global Crossing Media and Entertainment management team: a team with substantial M&E industry experience as well as telecommunications expertise; a team with a global orientation, including in-depth knowledge of local concerns; and a team engaged in on-going dialogue with key personnel at every level of the M&E industry.

Extranet Components: The Network Operations Center

The Media and Entertainment Extranet will do more than make bandwidth available. It will add the core services of storage, streaming and security -- administered by a Network Operations Center located within Global Crossing with its own dedicated M&E broadcast-experienced staff. Media Suites in key cities along the network will have the dedicated space for actual storage, streaming and security-related applications.

Sounds Great, But How Much Will It Cost?
The economics of sharing the Global Crossing network, storage, streaming, hosting and integrated services with other media companies will provide substantial savings over the costs of piecing together an ad hoc Extranet from various providers. Pricing for services is consumption/usage based. The proliferation of broadband has already greatly decreased the cost of fiber connectivity and storage, making Global Crossing's Media and Entertainment offering the most cost-effective way to expand into the digital universe.

The Network Behind the Media and Entertainment Extranet

Today Global Crossing already provides the largest wholly-owned fiber-optic infrastructure in the world: 101,000 seamless route miles built, managed, owned and operated exclusively by Global Crossing. Unlike the patchwork of owners and providers common on other networks, Global Crossing is the one company fully accountable for performance and reliability.

Our network is fast, secure, reliable and cost-efficient.

No other telecommunications provider comes close.

The network's fiber-optic cables run below the surface of the Atlantic and the Pacific moving data at the speed of light and emerging at coastal landing stations along the coasts of North and South America, Europe and Asia. Connecting to terrestrial wires, the network links more than 200 major cities around the world.

Global Crossing is also expanding each of its metropolitan networks by constructing a series of city rings to provide building-to-building connectivity.

Global Crossing’s network brawn is immense, its design intelligent. The entire state-of-the-art system is designed to handle high capacity voice and data transmissions using the latest dense-wavelength-division-multiplexing (DWDM) technology, allowing for easy expandability. Further specifications include self-healing ring structures, erbium-doped fiber amplifier repeaters and the use of redundant capacity ensures outstanding reliability and service. The network allows Global Crossing to instantly turn up applications and increase bandwidth requirements for a client at any time, anywhere in the world. No waiting for additional connections or bandwidth, no delays while people are deployed to install new equipment.

Importantly for the media and entertainment industry, the network's offerings include scalable bandwidth up to OC 192, uncompressed 270mgb TV broadcast capabilities to virtually anywhere on the globe, high resolution transmission of filmed content, as well as massive worldwide storage capabilities supporting complete digital asset management.

Global Crossing’s technology provides a video transmission medium that is less expensive, more reliable, and higher quality than satellites -- with virtually unlimited capacity. It also provides a protocol neutral distribution system accommodating data up to the high resolutions needed for film and all high definition formats. Platform capabilities include frame relay, ATM and IP-based services, all available internationally.

The Network’s Future Applications

To be even more responsive to the media and entertainment industry’s growing demand for digital services, Global Crossing is utilizing the full scale and scope of its broadband network. Key cities for the media and entertainment community will be connected with dedicated wavelengths, giving instant access to an array of services, including the distribution of:

DVD quality video

CD quality audio

Live event broadcasting

Feature film and commercial production materials

On-demand applications

Global Crossing’s media and entertainment division will allow companies in the industry community to “plug into” a global infrastructure with rich capacity, redundancy, and the highest level of security. As the need to select and access high quality, rich media content anytime, anywhere increases, Global Crossing will provide the capacity to meet both today’s needs for distribution of data and digital assets as well as to accommodate the future explosion in demand for broadband services.

Partners For Transition, Partners for the Future

The Media and Entertainment Markets Division of Global Crossing is committed to serving its clients not just state-of-the-art broadband technology, but also with the tools needed to make that technology work for the M&E industry. We ensure that our customers have options for the future as they deal with today's needs in a rapidly changing industry.

Our goal is to be an active partner in creating an environment that allows the industry to deliver the dynamic content the audience wants, while finding the best ways for that content to generate revenue. The profitable digital business of the will be a partnership built among content providers, service providers and the audience. Global Crossing Media and Entertainment is moving toward that future today.



To: jopawa who wrote (11661)6/6/2001 11:45:55 PM
From: TechMkt  Read Replies (1) | Respond to of 15615
 
TSIX must be getting ready to board up the windows. How can they survive? Alcatel can't afford to loan them the required capital. Interesting.

Fez
_____________________________
06 Jun 16:10
Following is a press release from Moody's Investors Service:

New York, June 06, 2001 -- Moody's Investors Service has lowered 360networks Inc.'s (TSIX) senior unsecured rating to Caa3 from B3, and its senior secured and senior implied ratings to Caa2 from B1. All ratings remain on review for
possible further downgrade.


This action which follows the company's recently announced revised guidance, reflects our concern that, absent additional funding, the company's liquidity position may be insufficient to provide sustained support for its operations.

On April 27, 2001, Moody's initiated a review of 360networks ratings for possible downgrade following its March 2001announcement of revised financial guidance for 2001. On May 15, 2001 360networks announced a further revision in its 2001 guidance.

In its latest announcement, 360networks has lowered its estimate of 2001 cash revenues to $1.2 -$1.4 billion from $2.4 -$2.6 billion (previously $3.1-$3.3 billion), and adjusted EBITDA to $750-$800 million from $1.8-$1.9 billion
(previously $2.5-$2.6 billion). Moody's analysis focuses on cash revenues and adjusted EBITDA since these metrics more accurately reflect actual cash receipts which the company has available to fund its operations. In addition
the company has reduced its estimate of 2001 capital expenditures to $2.2-$2.4 billion from $3.5-$4 billion. In connection with its revised business plan, 360networks is investigating solutions to delay the development of a
transpacific network. In addition, the current plan does not contemplate any further funding to the subsidiary purchasing fiber on C2C, a pan-Asian undersea network.

As of March 31, 2001, 360networks recorded liquid assets of $821 million, comprising cash and cash equivalents of $278 million and $543 million available under two credit facilities. This liquidity combined with expected adjusted
EBITDA of $583-$633 million for the balance of the year is available to support interest expense estimated at approximately $138 million (based on first quarter actual interest expense) plus capital expenditures estimated at
$1.2-$1.4 billion for the remainder of 2001.360networks has indicated that it will require additional working capital of approximately $300 million over the next four months, which in combination with its revised business plan, will
fund the company through the attainment of positive cash flow in 2002. However, there can be no assurance that 360networks will generate the level of EBITDA
indicated by its latest revised estimate or that it will be able to raise $300 million in additional funding. Alcatel, which announced a $700 million equity investment in 360networks last October, has not, to date, indicated a
willingness to provide additional support to 360networks. Moreover, we consider it unlikely that the company can access the public debt or equity markets, given present investor sentiment.

As of March 31, 2001, 360networks recorded fixed assets of $817 million plus network assets under construction of approximately $3 billion to support long term debt of approximately $2.5 billion. Moody's considers that the substantial level of assets under construction distracts from the debt protection measures available to cover debt-holder interests.

The broadband service provider sector is highly competitive, and a number of well-funded broadband fiber operators have recently completed their networks, and are able to competitively exploit their lead time to market ahead of 360networks.

Moody's review will focus on the company's ability to meet its recently revised financial guidance and assess the likelihood of success in securing the funding necessary to execute its business plan in 2001 and thereafter. We will
also examine the completion status of the company's network to assess the degree of protection afforded to debt-holders from assets under construction.

In addition our review will analyze the quality of the sales backlog, the means by which this backlog will be converted into sales, and the ability of 360networks sales force to replenish this backlog over time, in a highly
competitive environment.

360networks is based in Vancouver, Canada.

(END) DOW JONES NEWS 06-06-01
04:10 PM