Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 73.75

+4.9%

Dec 11 3:59 PM EST

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To: Maurice Winn who wrote ()	10/6/1997 2:47:00 AM
From: Maurice Winn	of 29987

How Globalstar and cdmaOne can be even better than the rest. If people get a dual mode cdmaOne/Globalstar handset, they have a problem. When the terrestrial system is fully loaded they will get the dreaded "no service available" sign if they are out of sight of satellites in the concrete jungle and if they are on the periphery of heavily loaded cells because of the suffocating cell effect of cdmaOne systems. Because of power control in cdmaOne systems, handsets turn their signal up as cells load up. At the extreme, the handsets closest to the cellsite get connection because the furthest away ones can't shout loud enough to be heard over the din. They therefore get a no service signal and the cellsite service area has shrunk. Other problems are that call quality deteriorates and battery life is reduced. With TDMA, you can just keep trying and you will get your statistical turn when a gap in the traffic arises. But the cdmaOne customer gets left in the lurch. A related issue is the cost of service. The more accurately that demand can be matched with price, the more the service is used. When the system is hardly used, the calls might as well be nearly free. When in big demand, the price should be high. This is reflected in current pricing plans. But pricing plans are a blunt tool and don't optimize use of the network. By accurately matching demand and price, subscribers can enjoy lowest pricing, service availability at all times and maximum use of their phone. Network providers can enjoy a maximally used network, high profits and happy customers. This can be done thanks to the wizardry of electronics and software now able to be included in handsets. Globalstar and terrestrial systems are a bit different in that Globalstar is limited by power available. There is only so much power available from the photovoltaic panels which is stored in batteries. This needs to be sold at the highest price. So although little used over New Zealand, Globalstar can use that time to recharge the batteries for the trip over China and maximum demand. But the same basic idea applies - service should be sold to the highest bidder. To summarize the two problems needing a solution: 1 cdmaOne terrestrial cells shrink when overloaded and subscribers are cut off or can't get service. They also get reduced voice quality and shorter battery life. 2 Profits need to be maximized. [to be continued next post......]

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