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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: tero kuittinen who wrote (5976)	7/23/1999 10:21:00 AM
From: brian h	Read Replies (2) of 29987

Tero, Welcome to the thread. And I hope you stay here to see if G* is a successful venture or not in comparison to Iridium and Sprint PCS, etc. Most of us here knew IRID when it went public at the price of $22 and dropped to $17; then $71 ;now $7. I never have any interest in investing into it. May be I should have shorten it that will really prove how I avoid this company as an investment vehicle. I also watched Sprint PCS opened at $17 then down to $12; then $33; now $58. I cursed myself not put any money into it while knowing it will be a successful venture from the start. IRID is indeed a disaster so far. Sprint PCS is totally the opposite. I still remembered Sprint PCS's initial minutes plan was like $19.99 for 30 minutes usage (a huge roaming charge out of local area); now $29.99 for 120 minutes and 500 off peak hour limit (with a nation wide local coverage within its coverage area). Why is that? Competition! AT&T saw a direct competition from PCS then came out a digital one rate plan. Sprint PCS adapted and played the same game. The results proveed to be hits for both T and PCS. The marketing savvy from T and Sprint PCS serve the underlining quest on G's success. LOR and QCOM wanted experienced operators' marketing savvy. That is a part of original business plan. And I trust that decision still. 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. We are second guessing all service providers' ability to adapt and change to make G as a successful venture. VOD and AirTouch can be no fools. 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? G's business plan was never to mass produce a lot of handsets for average people to use. However its global regional coverage will totally circle AT&T's"bogus" digital one rate plan if G comes out a digital one rate plan for a high volume cellular user for paying ,say $1,000 for 2000 minutes usage a month, a fixed pricing plan. That will certainly take some of your NOK users to switch. Would you not think so? And indeed G* will certainly hope all governments in the world will subsidize G* minutes to their citizens who still do not have any telephone access. I will not be too concern about finding some good subscribers. Best, Brian H.

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