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

To: Clean who wrote (140)	12/30/1998 7:35:00 PM
From: Teddy	Read Replies (1) \| Respond to of 15615

Yeah, the 8 page Pan European Crossing Question and Answers thing was mailed to me, with other information that I requested, by Kenneth Simril. EVERYONE intersted in this company should request it. Ken has always answered my questions about GBLX right away or called me back the next day with the answer. You can contact Ken at Global Crossing's California office by phone at 310-385-5200 or Fax 310-281-4942. In case you are questioning if the 8 page Q&A is worth the phone call, here is a sample: Q. How do market conditions in Europe compare to the situation in the U.S.? A. Telecommunications deregulation for much of Europe was mandated on January 1, 1998, leading to an explosion in traffic that is projected to continue, particularly for data and Internet applications. Fourteen of the top 25 countries, ranked by Internet population, are in Europe. At the same time, a shortage of transport capacity has allowed market participants to price products at a substantial markup to cost and significantly higher than prices in the United States for comparable route capacity/ distances. For instance, the Yankee Group Europe estimates that the current price for a 1.5/2 Mbps leased line on a 750 kilometer route between Hamburg and Munich is over four times the price of a similar circuit on the 800 kilometer route between New York and Boston ($19,000 vs. $4,500). Cross-border rate structure reflects a similar premium pricing: $53,000 for the 1,100 kilometer route between Milan and Paris versus $6,500 for the 2,700 kilometer route between Chicago and Houston (over 8x premium for the shorter European route). While the entry of new suppliers will rationalize market prices, it is anticipated that Europe will still provide premium pricing versus the U.S. I guess I should disclose that I long GBLX (and still consider it a speculative stock) and did not make too much effort to verify any of the data issued by the company.