-----Original Message-----
From: 	Mann, Kay  
Sent:	Wednesday, July 18, 2001 9:48 AM
To:	Sager, Elizabeth
Subject:	trading bandwidth

'Seasoned Trader' Moving Up To Head Enron Broadband  By Erwin Seba  Of DOW JONES NEWSWIRES   Jul. 17, 2001  Dow Jones Energy Service  (Copyright (c) 2001, Dow Jones & Company, Inc.)   HOUSTON -(Dow Jones)- An executive described as "a seasoned trader" will lead Enron Corp.'s (ENE) telecommunications unit after its current chief executive takes a different position within corporation in the next two weeks. James Fallon, president and chief operating officer, will lead Enron Broadband Services after it becomes part of Enron's Wholesale Services Group.   Broadband Services Senior Vice President Kelly Kimberly told Dow Jones Newswires Fallon will lead the organization after Kenneth Rice, chairman and chief executive, moves to a corporate job at Enron.   Fallon was unavailable to talk to Dow Jones for this story.   One broker said Fallon's selection indicated Enron isn't backing away from developing the bandwidth market.   "Jim Fallon is a seasoned trader," the broker said. "He made a killing in the power markets. He has a huge reputation for making money."   The broker speculated that Fallon may increase the number of traders Enron has in the bandwidth market. Broadband Services has announced plans to reassign and possibly layoff non-trader employees in the coming two weeks.   An analyst said Fallon's appointment indicates future growth for Enron's bandwidth business.   "I think Fallon is someone who wouldn't be there if it isn't a good opportunity," said Raymond Niles, director of power and merchant energy research with Salomon Smith Barney.   In his new role, Fallon will report to Mark Frevert, chairman and chief executive of Enron Wholesale Services, and Greg Whalley, president and chief operating officer of Wholesale Services.   Rice previously reported to Kenneth Lay, corporate chairman and chief executive.   Before becoming president of Broadband Services, Fallon was managing director of global trading and risk management for the unit.   From 1993 to 1999, he worked in Enron North America's wholesale energy business rising from the position of associate to managing director, leading the power trading business.   Before coming to Enron, Fallon was a nuclear operations engineer for General Electric, a systems engineer at W.R. Grace and a certified public accountant for Price Waterhouse.   Fallon earned a bachelor's degree in marine engineering from the Massachusetts Maritime Academy, a master's degree in accounting from Northeastern University and a master's in business administration from Columbia University.   Fallon takes over a unit that lost $102 million in the second quarter of this year and is going through a restructuring to reduce losses at the same time bandwidth prices continue to plummet.   -By Erwin Seba, Dow Jones Newswires; 713-547-9214; erwin.seba@dowjones.com <mailto:erwin.seba@dowjones.com>   NRG0119800084