Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 57.68

-3.0%

3:02 PM EST

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To: Valueman who wrote (6999)	8/30/1999 10:43:00 AM
From: tero kuittinen	Read Replies (4) of 29987

There's something I don't understand about these elaborate handset sales projections. How can anyone possibly project the demand for handsets that offer 8-10 hours of stand-by time in the satellite mode? It's impossible to predict the consumer response - this is like trying to figure out the demand for a new car with a 20 times lower gas mileage than existing models. One recent debate in European and Asian mobile phone markets concerns Nokia 8810 and Motorola V3688 models. The question is whether 100 hours of stand-by time is tolerable when you have to pay a 100% price premium over mid-range models offering considerably better performance. Some people think that the 100 gram weight justifies the performance trade-off - some don't. But in the context of this heated debate, the technological specs of Globalstar phones are simply out of this world. They don't come anywhere close to the benchmark figures that consumers have become to expect from their mobile handsets. The websites of the companies involved in manufacturing the handsets do an admirable job in keeping the consumers totally in the dark about what exactly the might be buying. This is the classic Iridium gambit - but Iridium tried to keep the weight of the phone secret for as long as possible, whereas Globalstar's little secret concerns the battery technology. Here's the problem: when potential consumers finally figure out the racket, there's a backlash. Considering that these phones are supposed to be on sale in September, it's simply inconceivable that detailed information about their specifications still isn't available. The industry norm is that the specs of new phones are released 3-6 months before actual sales begin. In some cases, press releases are made even 9-12 months in advance. But what Globalstar is offering to potential buyers and investors is just photos and small tidbits like the weight range. I bet that most GSTRF investors have no idea what the company actually intends to sell. Tero

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