Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 58.60

+3.0%

3:58 PM EST

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To: Rocket Scientist who wrote (5381)	6/25/1999 12:23:00 PM
From: Clarksterh	Read Replies (1) of 29987

RS - That [local access fee] is not set by G though, but by the local PTT/service provider, right?* Yes and no. Certainly the local phone company which runs the Gateway adds their cost into the local access fee, but I was referring to the fact that the wholesale rate for G* alone is greater than 0.10. See exchange2000.com ''Our wholesale price for airtime is around 35 (U.S.) cents to 50 cents a minute,'' Ming Louie, Globalstar's vice president of Asia Pacific business development, told Reuters. BTW - I have always assumed that G* would not be price competitive for local users where the user density was more than several hundred minutes per month per square Km. The real mystery in this case is how it is that someone in the middle of nowhere in Bangladesh has a cell rate of only 0.10 per minute. Even in the best case - the village is 20 miles outside a population center and it is flat terrain - 0.10 seems too low. I suspect either direct subsidies (i.e. government money) or indirect subsidies (e.g. must serve regulations). Clark

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