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Technology Stocks : Loral Space & Communications

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To: Jamse who wrote (2893)5/10/1998 9:35:00 AM
From: ccryder   of 10852
 
The article appears to be written out of the Chinese perspective. The perspective is that the cheapest fixed station phone service will put the other types of service out of business. Doesn't matter that it isn't portable, you still have to wire each phone to the vsat-like station, etc.

<<Just like here in the US, as more people get wired for "plan old telephone service", the cell phone industry is closing down.>> Ha, ha!

In an area where there is no infrastructure of any sort, the vsat approach should have a ready market for the business/industrial hubs and the mobile/portable communications will serve the sites where there is insufficient density to support the wired services around the vsats. Both approaches will do well.

And if G* tariffs turn out to be $5-$7 dollars in China, Bernard needs to fold his tent and go home. We should do quite well with our 70 cents plus local connection charges.

And as the markets for these services firm up, the stock price will have already risen. Little risk at that point and little gain.
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