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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 60.15-4.2%Jan 16 3:59 PM EST

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To: Maurice Winn who wrote (5112)6/14/1999 10:53:00 AM
From: Rajala  Read Replies (2) of 29987
 
So, Maurice, you didn't calculate the break even point, huh?

>I didn't calculate the breakeven prices for Globalstar and
>Iridium, the companies and others did it.I'm just reporting it.
>Globalstar says they have a breakeven around 8c per minute.
>Iridium's is about $1.20 per minute [but that will be rising as
>their unpaid interest bills mount].

Hmmm... the main cost for satellite ventures is the capital cost. So is the capital cost of I* 15 x that of G*?

Of course not. So where does the difference, calculated by the "companies and others", come from?

It comes from much higher amount of traffic assumed. Project larger volume of traffic and you can project cheaper per minute price, which leads to even larger projected traffic, which results in cheaper projected minute price etc etc ad infinitum.

Very nice indeed. If you believe in this sort of business modelling.

- rajala
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