Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 73.01

-0.9%

Dec 12 9:30 AM EST

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To: Nancy Haft who wrote (5384)	6/26/1999 4:16:00 AM
From: Clarksterh	Read Replies (1) of 29987

Nancy - Thanks for highlighting the subsidies (I'd missed the one on service at cost), but even at-cost does not, IMO, justify $0.10 per minute in a poor rural area. For instance, assume that there are 10 village clusters like that in a large cell of 20 mile radius (i.e. flat terrain). That is still only $2000 per month of revenue for the phone company which seems small given that a base station runs $150K and that doesn't include maintenance or the switching infrastructure etc. for the POTS. To put it another way, a minimal modern cell can handle 4 or 5 simultaneous calls and in a poor rural setting they are only getting 20% peak utilization (10 villages averaging 1hr per day each). Clark

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