SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 51.32+9.4%3:52 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Geoff Goodfellow who wrote (7941)10/21/1999 3:14:00 PM
From: Rocket Scientist  Read Replies (5) of 29986
 
Geoff, I'd like to commend you for making the most articulate bearish argument on G* I've ever read. Time doesn't permit me to respond as fully as I'd like, but a few counterpoints:

AMSC and INMARSAT h/w is "luggable" but not really mobile and h/w costs are at least 2X what G*'s suggested retail price for a handset; as a GEO based provider they have latency effects that can't be eliminated.

Inmarsat's price of 3$ (I've never seen anything less than that, btw) is substantially higher than G* for the types of (regional) calls that G* expects to be by far the most common. If the 1.50 price you mention is really available from INMARSAT, fully terminated, then I suppose for international calls it may be cheaper than G*, but how often do people make international calls on their cellular phones?

The other important question: how much does Inmarsat charge it's distributors (i.e., how much profit incentive/pricing flexibility do they have). In G*'s case we know that the difference in G*'s price to the GWs and the suggested retail price to consumers is about 1$ (to be split between GW and retailer). Out of that 1$, 0.7-0.8 is almost certainly pure profit. Message: the retailers and GW operators will have plenty of incentive to push the service, and room to reduce rates if necessary to attract customers.

Regards,

RS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News