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I think you are forgetting one small detail Nicolai-GX selling their LEC to Citizens communication for $3.65 Billion CASH!!
If you look at the fine print, what they're really getting is $2.75 billion in cash, after tax. For sure, it's a nice onetime gain. But now that their cash cow has been put to pasture, what will they do for more money? Global Crossing isn't a profitable business until around 2004, according to Tom Casey.

Not to mention the contracts we have with EXDS filling our pipes.
That's $4 billion over 10 years. Not exactly a large part of their business plan when they're supposed to be doing $5 billion in one year RIGHT NOW. Where's the future growth? I hear words but no substance.

I also think a down economy will help GX beleive it or not. Williams, Level 3, et all will be very cash strapped and have a difficult time completing their networks anytime soon. ... GX will be the onestop bandwith provider while others struggle to complete their networks, leaving us around to collect gobs of $.

Holy cow. Have you seen Global Crossing's balance sheet? We must be talking about a different company. Global Crossing's business plan is predicated on a decent economy, without it, the company will have to return to the markets. That could be disasterous.

Also, what do you think will happen if Level 3, Williams, and/or 360networks go bankrupt? The assets will be bought by incumbents with the money and resources to deploy them. In other words, there'll be no shortage of competition. Then the incumbent can use the standard line "Do you want to do business with an established and well known company? Or with a company that might not be here in two years?" In part, that was what destroyed the CLECs.

First mover? Big deal. AT&T was a first mover and look where they are now.

See my post on the Global Crossing board for more. This isn't the place for it as it doesn't involve TyCom anymore.

http://boards.fool.com/Message.asp?mid=14636063



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