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I posted this message with some of my (bearish) views on Global Crossing versus TyCom


Yes, everyone is entitled to their opinion, I am curious however why you would choose to go into such promotion of TyCom and Tyco on the GX board. No answer is need, however… I thought I would return the thoughtful enlightenment and post a copy of my opinion on the TCM board, all in the vein of bipartisan cooperation and the never ending quest for knowledge.

TCM has a book value of $4.33, sales of 2.43B, and a market cap of 6B, with a share price of $11.56.

GX has a book value of $14.10, sales of 3.6B and a market cap of 12B, with a share price of $14.50.

This is the opening paragraph from the FACT sheet from the TyCom Global network page on their website, the bolding is mine:

The Tycom Global Network (TGN) is PLANNED to be the most extensive and technology advanced undersea fiber optic network in the world. The TGN system WILL BE BUILT in phases over ten years, based on future requirement of global and regional demand… Phase 1 of the buildout is now underway, and is ecpected to be completed and ready for service (RFS) by the third quarter of 2002.

Translation: The network doesn't exist. (and their ain't no money to build it). The GX network is about 85% complete and 100% fully funded.

Given the two sales numbers I would put forth the opinion that those “deal makers” you were quick to hold up haven't, in comparison to TCM, done that badly at leading the sales efforts for GX . I wonder why that is? Maybe the GX sales team has a real network to sell capacity on?

I went looking for any cable laying projects that TCM is currently physically doing. The best I could come up with was a November 2000 release, a snippet is pulled below. Kinda interesting what became of the last hunk of fiber they put on the ocean floor hugh?


Pembroke, Bermuda, November 30, 2000 -- TyCom Ltd. (NYSE: TCM; BSX: TCM) today announced that it has installed the world's first 10-Gb/s 32-wavelength undersea fiber optic system. The end-to-end 10-Gb/s system, delivered to Global Crossing, utilizes next-generation components such as high-performance optical terminal equipment, dense wavelength division multiplexing (DWDM) equipment, line amplifiers, and wavelength termination equipment. The system, Pan American Crossing, is a 3-fiber pair cable linking California, Mexico, Panama, Venezuela and St. Croix and will ultimately provide near-terabit (960-Gb/s) capacity.

Yes, your comments are indeed thought provoking….



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