Collapsed telecoms firm Global Crossing is hoping to emerge from
chapter 11 bankruptcy protection early next year. It filed a plan
with the US Securities & Exchange Commission last week.
Analysts have said that telecoms customers should press former
bankrupt service providers to pass on the benefits if they
reorganise.
In the case of Global Crossing there is scope for such deals
because of the low prices that will be paid for its assets under
the bankruptcy plan. The $407m (£271m) deal will give a 61.5% share
to Hutchison Whampoa and Singapore Technologies Telemedia, the
remaining 38.5% going to the carrier's creditors.
The buying price is a bargain compared to the estimated asset value
of $22.4bn when the company declared debts of $6bn and bankruptcy
earlier this year. So it has been suggested that customers should
press Global Crossing and other telecoms companies emerging from
chapter 11 protection for more favourable deals.
Gartner analyst Maureen Coulter said, "Customers can expect better
deals - but not brilliant deals. Rescued telecoms operators will be
streamlined and will have cut back on the range of services
offered. There may be room to get better deals on price but it is
more likely that customers can get better bundled or longer-term
contracts." Coulter added that the better finances of reorganised
telcos existed alongside reduced competition, so the best strategy
was to have two suppliers and play them off against one another to
win better deals.