More from RED_SLK; he sounds pretty credible to me.
RckScntst3 - (My Source)
by: RED_SLK230
11/4/1999 11:39 pm EST
Msg: 15886 of 15893
Globalstar USA in California is the subsidiary for providing service in US. They do not distribute phones but they do
sign you up for service and then they have a distributor for the phones contact you. It' s an 877 (toll free) number. I
left it at the office. Anyway, they are full of information regarding "soft rollout" and "commercial rollout". What my
source told me is that (and I will ramble):
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1) A "select few" subscribers already have the phones for testing and test are going fine. Service almost always works
while standing near the outer edge of a multi-story building and generally works in the heart of the building, despite
claims to the contrary. ------------------------------------------------------------------- 2) There are only 12 active distributors
now because if there is a problem with the phones they have an easy recall. There will be over 100 distributors in the
US once the final test is over. NOTE: A distributor of the phone is not a service provider.
------------------------------------------------------------------- 3) About 20,000 phones have been manufactured for
worldwide distribution but will not be released in USA until final testing is complete in USA - which should be around
mid-December. ----------------------------------------------------------------------
4) Phones are currently being released in Brazil (I think. My notes are at the office)
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5) Ads are being run in 80 magazines for November - December publications. Magazines like National Geograhic
Explorer, Biking, Maritime ???, etc... Very targeted audiences, NOT LIKE Forbes, Business Week, etc. I personally
have not seen an ad. ----------------------------------------------------------------------
6) Their database of US subscribers is now 7,000. Before the ads hit the street they were signing up about 50 people
per day (the public). Each month the database growth rate has increased 25%. Remember, this is pre-ad campaign.
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7) They do not have the numbers for demand from their special marketing partners such as the maritime, oil drilling,
mining industries, etc. The database they have is only from the general public.
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8) Commercial rollout begins in Feb. 2000. I did not quite understand the "commercial rollout" distinction from the
rollout starting in mid-December (sorry). ----------------------------------------------------------------------
9) They are currently expanding their national call center in the US because they expect to be slammed by subscriber
request from the ads. They did not give me any numbers for what they expect.
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10) I did not get a list of distributors. That is my task for tomorrow. But remember, a distributor of the phone IS NOT
the same as a service provider. -----------------------------------------------------------------------
I have done more research and talked to guys with the company in marketing and special projects associated with the
data end. The notes above are sourced from their call center. As far as data goes, they will begin in April 2000. The
only transmission rate available is 9600bps. I do not have alot of information but I am fishing. Have also called some
marketing partners to collect information. I am not convinced of the demand yet, but so far things look as good as
Schwartz has claimed. I am long the stock though my initial interest and initial trade was a short position. My basis for
trading a stock is purely technical, but I don't like to be surprised by changes in the fundamentals so I always do some
homesork. Technically, the stock looks like a surprise to alot of traders (going to 37 - 39). I belive a stop at 20 1/8 |
