Re: GC/Exds deal -- How would it work?

[Wayne Bouchard <web () typo org>]

On Thu, Jul 13, 2000 at 10:22:27PM -0700, Steve Carter wrote:
> > >         It's also worth noting that it's going to be easier for them
> > > to push enough traffic to justify more peering after such a merger,
> > > and additional transit arrangements can easily be made during the
> > > transition period.  Acquisitions like this happen and these issues
> > > are resolved all the time.
>
> If you're confusing peering with transit then excuse me, but by purchasing
> another hosting business and, therefore, adding to EXDS's already terrible
> outbound vs inbound traffic ratios it will make obtaining good
> non-settlement peering even more difficult.  A bunch (meaning: most of)
> the big backbones have peering guidelines regarding what a potential peers
> ratios must be to qualify.  Like in the (out:in) 2:1 or 3:1 range.

Yes.. there is the question of wether the peers of GC would honor
those agreements under ownership of exodus (probably not since most
already have agreements with esodus and would force the contracts to
be ammended to reflect exodus' terms) and wether or not they would
suddenly decide that this is not such a good deal for them as peers.

> > Are they selling off Frontier Long Distance too?
>
> I believe the announcement was just about the GBLX LEC business and
> nothing definitive about anything else.
>
> -Steve

The announcement I saw from the WSJ said deffinitively GBLX Local (I
assume rochester tel and etc) would go away and that rumors had gblx
and exodus in talks over the globalcenter part (this would be just the
data centers, not the long distance business or the ip backbone) and
the money would be used to pay down gblx debt. Personally, I think it
would be a bad idea. (remember, they also announced some months back
that they were going to spin globalcenter off into a tracking
stock. If the rumor of a sale is true, what does that say about
management's oppinion of the business?)

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Wayne Bouchard                                    [Immagine Your    ]
web () typo org                                      [Company Name Here]
Network Engineer
http://www.typo.org/~web/resume.html
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