IP: more on glad to see telecom CEOs reading the history books

[David Farber <dave () farber net>]

> Date: Mon, 11 Feb 2002 14:24:58 -0800
> From: Stan Hanks <stan () tta com>
> To: farber () cis upenn edu
> Subject: Re: IP: glad to see telecom CEOs reading the history books
>
> >The regulators are believed to be looking into deals under which Global
> >Crossing and Qwest bought capacity on each others' fibre optic networks.
> >A former Global Crossing accounting executive has claimed that the
> >transactions were artificial, and were designed to inflate revenues.
> >
> >US accounting rules do not allow companies to book capacity sales as
> venue if they involve straight swaps of capacity between two companies.
>
> Interesting. I've seen deals that were clearly straight swaps booked
> as "sales" by both parties. In addition to looking like revenue when there
> isn't any, it also generates another side benefit -- HUGE commission checks
> for the sales executives involved...

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