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Re: C&W east coast flap this afternoon?
- From: Jonathan Disher
- Date: Wed Nov 13 11:34:59 2002
On Wed, 13 Nov 2002, Peter Salus wrote:
> C&W is divesting itself of a lot of "real estate" these
> days. It struck a deal with Primus concerning its
> voice customers (last week), now its DSL customers to
> New Edge.
New Edge is also getting their non-enterprise (i.e. T1, frac DS3)
customers. We got our first strong-arm letter on October 11th threatening
disconnection if we didn't sign a migration authorization. Yesterday we
got notice that our T1's get shut off on December 31st.
> Moreover, the BBC reports today that C&W is cutting 3500 jobs
> worldwide and "also announced heavy losses." C&W announced
> that it was cutting 23 of its 42 "data centres around the
> world."
>
> (The losses this past year exceed $6.5 Billion.)
This doesn't surprise me. Exodus lost their shirts buying GlobalCenter.
Then C&W bought Exodus. Granted, it's not the only reason for losing
money. But it's undoubtedly a big contributor.
-j
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