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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 64.20+1.6%2:38 PM EST

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To: Lu_Xun who wrote (6207)7/28/1999 5:12:00 PM
From: Jim Parkinson  Read Replies (2) of 29987
 
A simplistic and bias view of demand:
As a G* long I have ran the following scenario through my mind many times especially after hearing or reading that some folks don't believe there is a demand for mss. So bear with me and here goes.

I am a happy Airtouch user with my $150 Q handset. I generally work and live in my svc area and when I travel out of the area within the US I pay an occasional roaming charge and life is ok. I'm happy.

Every now and then I get to go somewhere like Europe, the Carribean or Mexico for a little r&r and like to occasionally check in to make sure my business doors are open, approve one thing or another, make sure the kids haven't invited somebody like Snake or Everlasting Moonie over to the house to look after things while we are gone. So I use the land lines, give my credit card info or try to use MCI which works some places but not all and make my premium overseas phone calls from a fixed site. That's ok. I usually get through except in Mexico where it is hit and miss. Same with Italy sometimes. Or how about using Cable and Wireless in Grand Cayman where the recording as of last April didn't even give the proper instructions so you wait on hold for 5 - 10 until someone apologetically gives you the right instructions after which you finally make your call. Ok, you play you pay. Or I could have rented a cell phone compatible with the local gsm or whatever but that isn't any bargain! That is life as it exist today.

So I get a call from Airtouch who has been a good srvc provider and they say, "Hey, you are a good guy and we appreciate your business. How would you like to upgrade your service to our new sat phone for a few hundred dollars? (Maybe it is $1,000 or $1,200. I'm not sure where my threshold is but that is probably in the ballpark.) You can use this phone as a cell phone when available at your current rates or use it anywhere else (well, there are a couple of holes but I don't see myself being in them) for a 30 to 50 cent per min premium over alternative cell or land rates. (Look back at one of RMiethe's posts. That seems to be what the ultimate pricing premium will be.) How about it? Can we sign you up?

So now I think about the last time I was in Grand Cayman where I had to leave the beach to fumble with Cable & Wireless to make my calls. "I'm sorry, he is on the other line. Can he call you back?" Not unless I wanted to hang around this dingy room when I could be on the beach, strumming my guitar, sipping a Red Stripe and watching the bikinis go by. "No, I will have to call back," I say. I spent about $60 on phone calls from there on my last trip. Would I have spent $100 for the privelege of being able to get through, receive call backs on the beach bikinis and all? In a New York minute. Would any of my freinds? You better believe it.

We all know it is worse in Mexico and other spots in the Carribean.

Would I leave Airtouch who I am happy with and pay $2,000 or $3,000 for a phone and pay $1.50 per min premium. H.. no!

So this is one basic American's point of view who doesn't even rely on his phone for his livelihood. What if I did? What would I pay then? I think more. Now think about the 4 billion souls who have yet to place a call. Would 1 or 2% of them opt for the service? I'm banking on it.

Sorry about the length but Maurice can't have all the fun.
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