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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 59.91+4.0%3:59 PM EST
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To: David Wiggins who wrote (7638)9/29/1999 4:26:00 AM
From: John Stichnoth  Read Replies (2) of 29987
 
I will, so that I can have the last word <g>, give one more opinion. I think that they were in fact ready to go with the 32 sat launch, but irid's collapse gave them pause. Specifically, there was apparently real disagreement between the Loral/G* people (on one side) and the service provider people (on the other) as to the need for handsets prior to the start of service. In a conference call (early summer?) one of the SP's representative (tesam's?) stated that they would not start service until the phones were ready. As irid went down, one of the reasons given for failure was the handset situation.

Learning from their rival, G* essentially lost the battle with the SP's and delayed rollout until the handsets were in production. With qcom's announcement that phones are now available commercially, the last hurdle is removed from commercial startup of the system. By "losing the battle" with the SP's, G* may have improved its chances of winning the war.

And, bowing to the SP's is a positive indication that G* recognizes that they are in the marketing phase now. Rollout vis-a-vis handset availability was a marketing issue rather than a technical one. The decision came down on the side of the marketers. That's good.

(Of course, that should have been their decision in the first place. But, better the right decision late than never.)

Best,
JS
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