nerd...a difficult one to answer, but see my ramblings below
It's not that I don't like Centerline - I just see it being the least valuable asset (ultimately).
If you look at any telco, GTEM being no exception - 3 components have to fit together in any telecom network in order to provide End to End connectivity,to be able to surf the WWW, make calls etc:-
1. Component 1 is Hotzone - this is the last mile enabling subscriber 'access' to the network - voice calls, wireless laptops etc. Competitors are the traditional fixed line broadband telcos, the catv companies and the cell phone companies through their GPRS networks. Hotzone is attractive as it is readily deployable, no roads to dig up. The big issue here though is spectrum availability and governmental licensing. You bet the cell phone companies will be lobbying their governments crying foul given that they have paid $Billions for GSM/3G licences. That is why I think GTEM is focussing on Mexico, China etc as those govt want the technology invested and may therefore be lenient on licensing costs
2. Component 2 is the Strat. This is crucial to provide WiMAX Metro backhaul from designated Hotzone 'Hubsite' Basestations. Without a Strat WiMAX backhaul link, GTEM have no other option other than to 'lease' bandwidth from incumbent aggregators/PTTs etc to transport 'Hotzone' access traffic to designated 'Core' PoP sites. This dents the cost model...If you look at the cell phone companies, they have resorted to building expensive 'digital microwave' access networks to backhaul traffic from their cell sites to their core switching centres or 'fibre provider' points of presence. That is why I see Strat as being an important integral solution to solving the Metro 'backhaul problem'. With strat you get massive 'WiMAX' access coverage but also 'backhaul' from your Hotzones on the ground to the 'Core'
3. Component 3 is the IP Core Routing domain. This is where IP 'Peering' takes place to route the 'Hotzone' VoIP/Internet and Dect traffic into the Tier 1 National PTT IP Core Network - If GTEM were operating in the UK they would need to 'peer' with BT - AT&T or Sprint in the US. If GTEM can co-locate with the national PTT then you are looking at 'across the floor' fibre links, otherwise 'fibre optic' access maybe leased from the likes of Level3, Global Crossing etc. I doubt whether much of Centerline' current set up serves much purpose here (other than maybe re-using a few soft switches for the Dect Calls)
The trouble I have with Centerline, right now is all it is doing is transporting Voz Brazil voice traffic (originating out for instance Brazil PTT International Gateway Exchange in San Paulo) through e.g Global Crossing' to GTEM LA switch, where the traffic is dropped backin to the US National network. GTEM' profit is made after they have paid 'said Global Crossing', by being cheaper than Brazil PTT on the 'international' transit part of the call. This area is cut thoat, which is why the margins are small. If GTEM can raise any capital through a sale (and shed the Operations FTEs wagebill and floor space etc) - then I think this could be a lifeline to plough funds into the Hotzone rollouts and Strat development instead.
Finally, Magic Money stands alone as a Value Added Service. Given that it has mastercard approval (I believe) then this could be licensed to any takers (i.e the cell phone companies)- or deployed on top of GTEMs own Hotzone/Strat network.
JMHO - once again I am not against Centerline, I just see it as being the 'least strategic' at this point in time
schnizzle
AI
