subject: Global Crossing (wholesale) Market Research Report [print this page] Global Crossing owns and manages a highly secure end-to-end IP network that would be very difficult for a competitor to duplicate. During 2009 and into 2010, the company continued making strategic investments in its network to create a platform that delivers a wide range of global services to enterprises and carrier customers.
Global Crossing's consolidated revenues were relatively stable in 2009 compared to 2008 and it had a small operating profit. Between 1Q09 and 1Q10, its IP traffic grew 63% and it expanded its IP VPN ports by 13%. During 1Q10 its network handled 3.99 billion IP interconnected minutes.
The company generated positive cash flow during the 2009. However, the company still has a relatively high debt burden with some loans due in 2011. Although continued positive cash flow will help reduce this burden and increase the company's options for further growth, it must find a way to significantly improve its long-term financial stability.
Global Crossing has rebuilt itself as a forward-looking, customer-focused international carrier. Now it strives to become one of the market leaders in global data and IP services, by enabling carriers and enterprises to support all their networking needs over a single network, from a single provider, to anywhere in the world.
Its network will play a central role in Global Crossing's efforts to achieve its vision: "to be the recognized leader in connecting businesses, people and information around the world." We think the carrier has the human and technological foundation to come close to that goal, but its financial situation could impede progress.
Having firmly established its core invest and grow' lines of business (i.e., enterprise, and carrier data services addressed through direct and indirect channels), it is now working to enable those sectors with global IP and Ethernet transport services, hosting, and management services. The company's Fast-Track white-label services and its Global Partner Program (GPP) continue as key tools for working with service provider partners. It also continues to sell through systems integrators (SIs), resellers, and others, as well as selling directly to enterprise customers.
While the company's stated strategy, service portfolio, and channel strategies are all strong, we believe that 2010 could be a critical year for Global Crossing to contain its costs and restructure or pay down the debts that will come due in 2011.
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