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


To: Bonzo who wrote (14105)10/2/2001 12:26:37 AM
From: Elroy  Read Replies (1) | Respond to of 15615
 
Can someone make a case for keeping Global Marine in light of its mostly fulfilled importance?

1- If Global Marine's importance is mostly fulfilled, then who would buy it?
2- GX would need to receive cash in order for the sale to help GX's liquidity. Who has enough cash and might have interest in Global Marine?

Elroy



To: Bonzo who wrote (14105)10/2/2001 2:54:46 PM
From: jimbopost  Read Replies (1) | Respond to of 15615
 
Sell cable laying/maintenance ships?
Advances in optical fibers as well as damage to cables by ship anchors and trawling fishers require GX to maintain control of Global Marine. New crossings will have to be made periodically to expand and improve service. Global Marine provided assurance that GX's system could be completed. Consider what GX would look like if carrier consortiums had leased the Cable & Wireless ships for a couple of years? Instead, GX acquired them.

Some excerpts from "An Oversimplified Overview of Undersea Cable Systems" nicewww.cern.ch (Word'97)

… - …
The prospect of signaling at many more wavelengths is very attractive to owners of existing submarine (or land-based) cable systems, since it seems to offer them a way of providing additional bandwidth which is quick, easy and cheap to install. However, early designs of EDFAs and the dispersion characteristics of some installed cables will mean that easy upgrades will not be possible everywhere. While the present signs are that several well-financed groups are keen to compete for the potential profits in the bandwidth market, the ownership of well-adapted cable systems might have the potential to concentrate very great economic power in the hands of a few "bandwidth barons".
… - …
The limit to the number of fibre pairs in a submarine cable does not come from the cost of the extra fibres, but from the economics of building repeaters. These are very expensive devices (because they have to be very reliable in an inhospitable environment), with a very limited production run. A significant part of their costing depends linearly on the number of fibres that has to be amplified.
… - …
When repeaters are needed they must be powered. The standard approach is to send a constant current of about 1A from one end of the cable to the other, along a copper sheath which lies outside the fibres and inside the armour (if present). Each km of cable offers a resistance of some 0.7 ohm, and the voltage drop across each repeater is typically 40V (on four fibre-pair cable), leading to a requirement of close to 10 KV across a typical 7500 km transatlantic crossing with 100 repeaters.
… - …
The major difference between terrestrial and submarine cable systems comes from the fact that the repeaters are accessible in the terrestrial systems, and can be independently powered.
… - …

IMHO GX won't sell them.
Jim Brown