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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 56.80

+0.2%

3:59 PM EST

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To: Maurice Winn who wrote (7019)	8/31/1999 4:00:00 AM
From: tero kuittinen	Read Replies (4) of 29987

It's the lack of urgency that seems so puzzling, Maurice. Airtouch refuses to comment on international call rates, for example. That 1,50 dollars is the price of one minute within USA. They didn't even speculate what the USA-Europe call rate might be when I called them up. So the "marketing strategy is in place" and over 100 000 handsets should be available by year's end - but the biggest operator will not tell putative customers the price of international calls? The 40 million dollar ad budget by next summer is another mystery. Iridium couldn't create interest with 140 million bucks. That was when the buzz on satellite phones wass still positive and there were news items on CNN and BBC on the service launch. Now the typical headline on the topic contains puns on orbital decay. That's a tough climate for a budget ad campaign. I know this may sound like a peripheral issue - but the key part of Nokia's strategy in selling the 8810 for 1'000 dollars was the adamant line on price cuts. Nokia made very clear from the start that there wouldn't be any substantial discounting. There hasn't been. That was important. The only way to sell a luxury product is to convince the consumers that they won't see the item in the 50% bargain bin next month. Let's face it - the 1'250 dollars Airtouch cited as the firm handset price places Globalstar in the luxury item category. Telling a leading global business magazine that these handsets could well be sold at 50% discount (nudge, wink) is another tactical move from Twilight Zone. Off topic. Michael - why don't you show me a quote of where I predicted the "demise" of CDMA? I can show you several quotes of claiming that CDMA will be a global niche standard among second generation digital standards. Which it will be, according to all leading US investment banks - average forecast is for about 20% global share around 2004. That's the definition of "niche" Ms. Aaltonen taught me in the Tikkakoski High. Whose English is the problem here? Last December I wrote that Qualcomm is a mystery - it could go to 140 dollars. You know of many telecom commentators who said as much in 1998? Share with me. And BTW - the fastest growing digital standard in the world is now TDMA. According to both Merrill Lynch and Strategis. Both infrasturcture and subscriber base. So where did I go wrong in predicting that the growth estimates of TDMA-based standards have been low-balled? Tero

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