 |
|
||||
| Current Users: Sign In New Users: Register |  |
||||
|
|||||
|
Global Crossing: The King is Dead, but Not the RevolutionJanuary 28, 2002 While Global Crossing's finances have failed, its network infrastructure will remain. The Global Crossing network accounts for twenty percent of undersea bandwidth connecting the United States with the rest of the world, according to preliminary estimates from TeleGeography's forthcoming report, International Bandwidth 2002. "Global Crossing had a great idea, and they built a formidable network — but they got caught between rapidly mounting debt, and a stalled market for long-haul bandwidth," said TeleGeography analyst Stephan Beckert. According to estimates from research group TeleGeography, bandwidth prices between North America and both Europe and Asia have fallen by more than 50 percent in each of the past two years. The combination of falling prices and debt from network construction has taken a toll on the companies, such as Global Crossing (NYSE: GX), that led the bandwidth revolution in the late 1990s. Although the golden age of bandwidth is over, today's news does not mark a catastrophic end to the bandwidth industry. Demand for bandwidth has continued to surge. TeleGeography reports that Internet service providers — the largest users of bandwidth — provisioned 240 Gigabits per second (Gbps) of international capacity from the United States in 2001 — more than double the amount they used in 2000. While Global Crossing's bankruptcy may be a tragedy for the company's investors, who lost billions of dollars, the bandwidth revolution will continue — under new ownership. Hutchison Whampoa and Singapore Technologies will jointly take control of Global Crossing for $750 million. The Global Crossing purchase gives the two companies ownership of a core element in the international capacity market. For more information, please contact: Stephan Beckert
|
Press Releases |