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

To: M. Frank Greiffenstein who wrote (58)	10/27/1998 5:53:00 PM
From: zebraspot	Read Replies (1) \| Respond to of 15615

COMPETITION (From SEC filing) >>COMPETITION The international telecommunications industry is highly competitive. The Company faces competition from existing and planned systems along each of its planned routes and from satellite providers, including existing geosynchronous satellites and low-earth orbit systems now under construction. On certain routes, terrestrial cable systems may also compete with the Global Crossing Network. The Company competes primarily on the basis of price, availability, transmission quality and reliability, customer service and the location of its systems. Traditionally, carriers have made substantial long term investments in ownership of cable capacity, making lower price and superior service less determinative in convincing such carriers to acquire additional capacity on the Company's systems than is the case in industries without such long term relationships. Accordingly, there can be no assurance that the Company will be able to compete successfully against systems to which prospective customers have made long term commitments. The routes underlying Global Crossing's systems are currently served by several undersea cables as well as satellites. Primary future sources of competition for the Company may result from, among others, (i) TAT-14, a transatlantic cable system which is being developed by its consortium members, (ii) Gemini, a transatlantic cable system being operated and marketed by WorldCom and Cable & Wireless, (iii) China-US, a transpacific system being developed as a "private cable system" by fourteen large carriers, including SBC, MCI, AT&T and Sprint, most of whom have traditionally sponsored consortium cables and (iv) the Japan-US Cable Network, a transpacific system being developed by a consortium of major telecommunications carriers including Worldcom, AT&T, KDD, NTT, Cable & Wireless and GTE. Other regional and global systems are being considered by developers, including Project Oxygen, a global system being evaluated by CTR Group, Ltd. The Company believes that the other planned transatlantic systems would compete directly with AC-1 and the commitments of the developers of these systems could substantially reduce these customers' demand for capacity on AC-1. Although the Company believes that the other planned transpacific systems will not satisfy the demand for capacity between the United States and Japan and that there is currently enough demand projected to accommodate all such systems, the other planned transpacific systems will receive commitments for capacity that PC-1 could have received in their absence. In addition, the Company may face competition from existing and planned regional undersea cable systems and satellites on its MAC and PAC routes, where entrants are vying for purchases from a small but rapidly growing customer base. See "--Rapidly Changing Industry; Pricing Uncertainties" and "Business--Competition[in SEC Registration filing sec.gov

To: M. Frank Greiffenstein who wrote (58)	10/27/1998 6:05:00 PM
From: D. K. G.	Read Replies (2) \| Respond to of 15615

GBLX reminds me of a QWST except at sea. The down turn in the market during and after its IPO was an opportune time to pick up some shares. A couple of negatives I'd like to know better: 1) They still require a large amount of capital to complete the build out. How, who, what, when, and where. etc are they going to get it. 2) There is another consortium also engaged in the same endeavor but behind. I don't have any hard numbers but I think with two players there is still enough market for both. Bandwidth projections are all over the map but the trend is definitely up. SEE the street.com article posted a few back. <<The only stock in my trading portfolio...>> Are you trading this stock ? Regards, DKG