| Prepared
Witness Testimony The Committee on Energy and Commerce W.J. "Billy" Tauzin, Chairman Capacity Swaps by Global Crossing and Qwest: Sham Transactions Designed to Boost Revenues? Mr. Patrick Joggerst
Good
morning. My name is Patrick Joggerst. I joined Global Crossing in early
1998 following 18 years at AT&T. I was the 12th person asked to join
the company and was involved in marketing and selling wholesale products and
services since its inception. The
founders and early employees of Global Crossing shared a vision of a worldwide
fiber optic network. My friends and colleagues, together with our
suppliers and customers, gave that vision life. In
the early years, demand for global broadband connectivity was insatiable.
Global Crossing=s success attracted many competitors with their own financial
backers eager to replicate Global Crossing=s reach. In
the first three quarters of 2001, Global Crossing's stock price started
plummeting and recurring revenues failed to grow as anticipated. These were the
results of the now well‑known glut of fiber optic capacity. However,
at the time, I continued to believe in the company's
future and even suspected that the market for global connectivity would rebound.
In October 2001, I asked the company for stock options. Unfortunately my
optimism has proven to be incorrect. I
left Global Crossing at the end of 2001 to pursue new opportunities. I
have been asked to cooperate with this committee and I am pleased to do so. The
Committee on Energy and Commerce |