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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 67.82-0.9%Dec 8 3:59 PM EST

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To: RalphCramden who wrote (21340)1/19/2001 6:29:07 PM
From: rf_hombre   of 29987
 
Ralph> Well guess what, the system is worth a total of ~$500MILLION in that case, because that's what it would cost to put up a terrestrial system with the same revenues.

$500 Million, that was probably the infrastructure cost for one of the operators in LA county, bordered by San Clemente to the south, Inland Empire (if memory serves right) to the east and Ventura to the North. And that's only a tiny fraction of the world's landmass. I made a guestimate some time ago that to cover 90% of the globe, a capital expenditure of the order of $ 50 billion would be required for a terrestrial operator vs $5 billion for Globalstar.

So yes, it may very well be that an urban cell comes to about $250/sub but I think that to draw a valid comparison Also you would have to take a space segment and infra cost per GW and divide that into the Gateway service area (cost/km^2). Then compare that figure against that of your typical cellular operator. Of course, Globalstar does not cover indoors but terrestrial does not offer as an extensive a global footprint.

rf_hombre
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