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Enron Mail |
You guys are making us and our shareholders rich. I hope you are having fu=
n=20 doing it. Keep up the good work! DF ---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/14/2000=20 09:18 AM --------------------------- FYI, a daily report put out by CIBC illustrating their view on the emerging= =20 market... Daily Teletimes CIBC World Markets We had a very informative meeting with Enron=01,s management yesterday--Jef= f=20 Skilling, CEO of Enron (ENE - Buy) as well as Ken Rice, CEO of Enron=20 Communications and their Software VP, David Berberian and others. Enron has= =20 built out a substantial fiber network and begun to make substantial moves= =20 towards developing a bandwidth trading market. We don=01,t believe that a = lot=20 of telecom investors understand how well thought out and agressive Enron=20 plans on being in this market. It appears that Enron is now planning to=20 articulate its strategy- specifically at their investor conference on Janua= ry=20 20th in New York. While details will have to wait until the 20th, Enron is= =20 essentially aiming to build a gateway tieing in all the major long-distance= =20 networks, guaranteeing premium quality and pricing in doing so (i.e. a =20 =01&Network of Networks=018). While ENE does plan to use its own network t= o carry=20 traffic, it plans to focus largely on seamlessly integrating capacity bough= t=20 on other carriers networks. Operationally, this boils down to a very smart= =20 switching system that gives customers the capabilities and reliability of a= =20 single network at the front-end while integrating capacity sourced from=20 multiple networks on the back end, creating more robust overall transport= =20 capabilities. ENE believes that this integration of multiple networks will= =20 offer greater path diversity, reliability, and efficiency than any=20 single-network solution. We note that Enron=01,s multi-sourcing approach i= s=20 tailor-made to foster the development of a robust capacity trading market (= as=20 discussed in our recent bandwidth trading report). Given Enron=01,s domina= nce=20 of the electricity and natural gas markets, we believe that there is no=20 better positioned company to create and capitalize on such a market in=20 bandwidth. While we await further details, we did leave the meeting with = a=20 much greater understanding of and confidence in ENE=01,s overall telecom=20 strategy. We believe that their telecom business could create tens of=20 billions of dollars of shareholder value if ENE executes well. We recommen= d=20 that telecom investors make an effort to attend the Jan. 20 meeting.=20 Tim Horan 212-667-5459
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