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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 62.88-0.5%Nov 14 9:30 AM EST
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To: Maurice Winn who wrote (5951)7/23/1999 9:05:00 AM
From: tero kuittinen  Read Replies (3) of 29987
 
That was suspiciously balanced commentary... who are you and what have you done to Maurice? I hope it was something cruel and unusual. It's hard to argue Globalstar wouldn't look a lot more appealing with the "possible" pricing scenarios presented in this thread. But it's very hard to figure out why Airtouch isn't choosing to opt for an aggressive strategy. If they could turn a profit at subsidizing the handsets below 1'000 dollars and slashing the call rates well below 1
dollar - why do they seem intent on copying the Iridium pricing plan? If their current pact with BAM breaks down, Airtouch will be forced to spend 2-3 billion dollars in building new East Coast coverage. Are they really going to take a simultaneous gamble on Globalstar? The current pricing plan does not point to that direction.

It does look as if Iridium has found a sugar daddy in the US government. The military can easily keep Iridium afloat if it chooses to do so. And that's the kind of direct subsidy that can be pretty tough on competition. It would be pure Motorola to avoid making any tough decisions on Iridium - that's the ostrich strategy they have chosen to deal with the paging headache. They can limp to 40 000 subs by Christmas, then stagger to 100 000 during next year. Wouldn't that be enough to bleed the rest of the satellite firms dry?

Tero
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