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Technology Stocks : CDMA, Globalstar versus Iridium, Inmarsat, etc.

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To: blue_lotus who wrote (38)10/24/1996 5:30:00 PM
From: Maurice Winn   of 381
 
Hello Neeraj, yes, the Iridium launching is due to start in November - not really a rumour. That was their original plan. All seems okay for launches to start and by the end of 1997 they should be pretty much operational. Globalstar launching starts later in 1997 and by end of 1998 should pretty much operational.

Iridium call prices are projected to be significantly more than the Globalstar call costs so the long run competitive advantage of Globalstar seems pretty certain. The primary difference is space switching in Iridium from satellite to satellite, but they will also be able to direct signals to ground stations for earth based transmission to destinations.

There seems little advantage in space switched signalling except that it enables them to handle calls closer to the final destinations without incurring earthbound charges which can be expensive. But satellites are limited in how many calls they can handle, so the best method seems to be provide a link to remote cellphones back to earth stations for nice cheap optical fibre based transmission.

Globalstar call efficiency has been increasing as design has progressed so the number of calls that can be handled has increased.

Demand seems likely to exceed the call capacity of either of these systems so continuing developments are certain - Motorola already having annouced another system [being CDMA based]. Globalstar will no doubt be increasing capacity soon after the initial system is developed.

As you say, the Iridium satellites are complex, whereas the Globalstar ones are "bent pipe" type - simply bouncing the signal back down again. Access to Globalstar groundstations will enable technology improvements whereas the Iridium system will require improvement by way of new satellites.

Regards,
Maurice.
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