% | $
Quotes you view appear here for quick access.

tw telecom AŞ Message Board

  • gbjrl gbjrl Nov 27, 2002 8:31 PM Flag

    FYI...ALGX is following TWTC

    Amid all the noise today RE: LVLT buying GENU assets, lesser know releases indicate LVLT will continue the GENU/ALGX/AOL contract and
    ALGX has sucessfully renegoiated their bank convenants a la TWTC.
    Looks to me TWTC, LVLT and ALGX are going to be suvivors of the 'telecom nuclear winter.'
    As an ALGX long, I think I'm in mighty good company.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • (when the debt starts coming due) TWTC will be THE LEAST of our problems..

    • Please check out when the debt starts coming due! Add up the net cash flow from now till then and see how much is left to pay the debt off! Bankers et al don't like promises forever. New equity would solve that problem nicely!

    • equity offering. They could last for ten years with no growth while meeting capex and bond covenants..

    • Yes - and I agree with you on all of that! My point was and remains it is hype and BS to present TWTC's network as 100% owned. 70% of their connected buildings, no matter how small would be disconnected if the ILEC/RBOC suddenly could say sorry we won't lease this line to you anymore!

      Of all the CLECs, TWTC is by far the very very best, best management, best balance sheet, best infrastructure! But even that may not be enough.

      The capital costs here are too high relative to what you can earn from them, period. This will get worse as the wireless last mile connects continue to get better and cheaper.

      That's a slippery slope that even TWTC can't handle.

      Worse - now I smell an equity infusion coming - cite the Wall Street dogs smelling around with new positive Buy recommendations - there is enough positive stuff here to hang an equity offering on - I'm afraid that will just lead to more losses for any not nimble enough to trade fast.

      Best of luck tho! Castor

    • Ok I see what your thinking. Now let me tell you how it works. That 70% is only for type two t1s. In almost every case its just one t1 to one building and its almost always a small one customer type building that is not in need of more service. One t1 does not cover the cost of a fiber build. That one circuit is worth maybe at most $500 a month.
      Yes they do use this for some small customers.
      Not much money in it though.
      Now an on net customer is a company or building that supports the build of the fiber.
      That one build is worth anywhere from $5000
      to in some cases $60000 and a few even more.
      The average for this I dont know but they have a bunch. Many many more than any other clec and that number grows daily.
      Yes they do sell to small customers just
      like the other clecs just because it is a source of income however small.
      How many other clecs service AT&T, Sprint,Quest and MCI. No they have not lost as much service as you might think
      from the MCI World Com deal.They did have it covered though.
      Heck in some cases the Rbocs have bought service from them.
      No the bulk and I do mean the bulk of TWTCs
      income does not come from off net type two customers but truly from thier on net buildings and customers. Trust me I see
      them do this every day.

    • is going to help TWTC greatly. With TWTC's dominance of metro fiber, TWTC is going to be the only alternative to the local incumbent in many areas. Remove the incumbents price restrictions and guess what. You really need to read the article I just posted.

    • Income?? What income? Just kidding.

      The whole point of this posting is to correct the misconception - promoted by many on this board - that TWTC is different from the other CLECS because TWTC owns ALL of its networks and is not reliant upon the RBOCS and other carriers for connection to the larger network.

      If 70% of one's buildings are reliant upon leased lines to connect to the larger telecom network, i.e. the normal CLEC model, then 70% of one's revenue base is at risk of legislative change - i.e. no more mandated access over RBOC lines - and thus 70% of TWTC is not differentiated from the average CLEC to the extent that some posters on this board would like to have us believe.

    • 70% off net buildings. So is this what brings in the bulk of
      the income? Do I undertsand you right? These off net buildings bring in the money more so than the on net buildings? Just trying to get it right. Not sure how it works now.

    • So let me see if I get this right. That 70 %
      is the bulk of the income just like all the other clecs of the world? This is what they
      bring most of the money in with? Have I got that right?

    • Whence the 70%? Read the 10K or even the latest quarterly report and comp the type 1 to type 2 buildings. You can read can't you?

    • View More Messages