-~          r

John EChoISOENRON
COMMUNICATIONS
1 0/16/2000 06:03 PM

   To: Ted SeitzlEnron Communications@Enron Communications, David
      Cox/Enron Communications@Enron Communications, Jim
      Crowder/Enron Comrnunications@Enron Communications, Jim
      Fallon/Enron Communications@Enron Communications, Kevin
      Garland/Enron Communications@Enron Communications, Richard
      DiMichele/Enron Communications@Enron Communications, Kristina
      Mordaunt/Enron Communications@Enron Communications, Everett
      Plante/Enron Communications@Enron Communications, Scott
      Yeager/Enron Communications@Enron Communications, Mike
      golden/Enron Communications@Enron Communications, Steve
      ElliottlEnron Comrnunications@Enrnn Communications
   cc: Carolyn BarreWEn~on Communicatioris@Enron Communications, Barry
      Pearce/Enron Communications@Enron Communications, Sherron
      Watkins/Enron Communications@Enron Communications, Phillip 0
      LoTdILON/ECT@ECT
Subject: First look at 2001 Plan

   Attached are two dissimilar spreadsheets.

   The first is the 2001 plan, using data as submitted by your group as of close of business today. This is a
   rather unpleasant plan which obviously ignores many positive and good things.

   Th~ second is the 2001 plan, adding additional margin to your group (or Overview) to get EBS into
   position to make its Enron Corp targets in 2001.

   I am scheduled to meet with Kevin tomorrow (Tuesday) about the 2001 plan. I would like to show him the
   2nd spreadsheet or something similar.

   My thinking is that we discuss with Kevin your original margin plan and then what was 'assigned" and
   consider that Overview. I would then describe to Kevin what it would take for ybu to make the overview.

   The key assumptions I see are a) everything is mark-to-market--Streams, IP, Circuits, Lambdas and
   Fiber, b) monetizations, securitizations etc can occur where we need them c) we take steps to cut costs
   by XX.

   In other words, I am asking you to tell me the conditions which would have to exist which would enable
   you to meet the overview shown in the Submitted to Corp. spreadsheet.

   Please give me your thoughts on what we should discuss with Kevin on Tuesday..


   as submitted.xl~


	  V
   submitted to Corporate.)

~OO VERNMENT
*EXHIBIT.fl
14514





							 Enron Broadband Services
							 2001 Plan - As Submitted
								(millions)

Commercial Groups
  Trading, Logistics & Support
  Media & Entertainment
  Wholesale
  Enterprise
  Europe
  Ventures
  Latin America (excludes Blockbuster)
  Asia (excludes India)
  Media Services
  Office of the Chairman

Network Support Functions
  Switching Services
  IT (Including Ciscon)
  Software Engineering
  Global Network Services
  Mid-Office Operations
  Product Engineering
  Structuring
  Strategic Development/New Products
  Corporate Development

Staff Functions
  Legal
  Accounting/Transaction Support
  Purchasing
  IT
  Finance
  Human Resources
  Marketing, Communications, PR
  Business Controls & Security
  Corporate Charges/Other

Submitted    Gross
Headcount    Margin

132
 68
 47
 35
162
 14
 ii
 18
 21
  8.
516

 68
199
 10
339
 70
 47
 64
 24
  5
826

Direct      Indirect
Costs        Costs

    80.0         (40.0)
    (17.7)       (17.3)
		 (14.0)
     0.8         (11.0)
    37.3         (45.2)
		  (5.0)
     5.0          (3.2)
     0.7          (5.0)
		  (8.5)
_________         (so)

    106.1       (155.2)

IBIT

		 40.0
		 (35.0)
		 (14.0)
		 (10.2)
		  (7.9)
		  (5.0)
		   1 .8
		  (4.3)
		  (8.5)
__________        (6.0)

		 (49.1)

			  (23.9)
			  (27.6)
			   (5.9) E
			  (65.8)
			  (12.4)
			   (9.1)
			  (19.1)
			   (6.1)
________                   (2.5)

			 (172.4)

28
43
22

21
31

  54
  13

 212
1,554

Depreciation & Amortization
BIT

106.1

106.1

(155.2)

 (13.7)
 (17.2)
  (4.7)
  (5.0)
  (4.6)
  (5.8)
 (21.9)
  (2.4)
 (72.3)
(147.6)
(320.0)

	*    (120.5)
(155.2)      (440.5)

  (23.9)
  (27.6)
   (5.9)
  (65.8)
  (12.4)
 * (9.1)
  (19.1)
   (6.1)
 * (2.5)
 (172.4)

  (13.7)
  (17.2)
   (4.7)
   (5.0)
   (4.6)
   (5.8)
  (21:9)
   (2.4)
  (72.3)
 (147.6)
 (369.1)
 (120.5)
 (489.6)

Interest
Taxes

									  106.1

										     (155.2)      (440.5)      (489.6)

O:\Hcuston\private\Finandal A~ounting Reporting\2001\FRS PIan\as submitted {incorne}

Net Income

Page 1 of 1





							Enron Broadband Services
						       2001 Plan - Submitted to Corp
								(millions)

Submitted     Gross      Direct
Headcount     Margin     Costs

Commercial Groups
  Trading, Logistics & Support
  Media & Entertainment
  Wholesale
  Enterprise
  Europe
  Ventures
  Latin America (excludes Blockbuster)
  Asia (excludes India)
  Media Services
  Office of the Chairman

Network Support Functions
  Switching Services
  IT (Including Ciscon)
  Software Engineering.
  Global Network Services
  Mid.Office Operations
  Product Engineering
  Structuring
  Strategic Development/New Products
  Corporate Development

Staff Functions
  Legal
  Accounting/Transaction Support
  Purchasing
  IT
  Finance
  Human Resources
  Marketing, Communications, PR
  Business Controls & Security
  Corporate Charges/Other

 132
  68
  47
  35
 162
  14
  11
  18
  21
    8
 516

  68
 1 gg
  10
 339
  70
  47
  64
  24
    5
 826

  28
  43
  22

  21
  31
  54
  13

 212
1,554

    80.0        (40.0)
    90.0        (17.3)
   165.0        (14.0)
    60.0        (11.0)
   100.0        (45.2)
    75.0         (5.0)
     5.0         (3.2)
    10.0         (5.0)
    10.0         (8.5)
_________        (6.0)

   595.0       (155.2)

595.0

(155.2)

 Indirect
  Costs         IBIT

		 40.0
		 72.7
		151.0
		 49.0
		 54.8
		 70.0
		  1 .8
		  5.0
		  1 .5
__________       (6.0)

	 -      .439.8

 (23.9)
 (27.6)
  (5.9) E
 (65.8)
 (12.4)
  (9.1)
 (19.1)
  (6.1)
  (2.5)
(172.4)

 (13.7)
 (17.2)
  (4.7)
  (5.0)
  (4.6)
  (5.8)
 (21.9)
  (2.4)
 (72.3)
(147.6).
(320.0)

 (23.9)
 (27.6)
   (5.9)
 (65.8)
 (12.4)
   (9.1)
 (19.1)
   (6.1)
   (2.5)
(172.4)

 (13.7)
 (17.2)
   (4.7)
   (5.0)
   (4.6)
   (5.8)
 (21.9)
   (2.4)
 (72.3)
(147.6)
 119.8

Depreciation & Amortization
BIT

			(120.5)
595.0      (155.2)      (440.5)

Interest
Taxes

Net Income

595.0      (155.2)      (440.5)

																		       Page 1 of 1
OAHouston\private\Financial Ac~unting Reporting\2001\EBS PIan\submitted to Corporate {income}

(120.5)
 (0.7)

(0.7)

I

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