Conference Call notes
Forward looking statements caveat....
Agreement with major SPs to prepurchase 25M$ worth of mobile minutes for 19M$ (to be recorded as revenues in Q1Y2K); 50M minutes of use pre sold at 25% discount.
Already started talking with Bell Atlantic; may start service through BeAtl as early as Q1Y2K
15 GWs installed and operating of which 9 are in service now (most pre-commercial, however)
1. Avezanno (Italy)
2. Presidente Prudente, (Brazil)
3. Aussaguel, (France)
4. Clifton, (between Dallas and Austin Texas, USA)
5. Smith Falls, (Ontario,Canada)
6. Beijing, (China)
7. Bosque Allegre (central Argentina, near Corduba)
8. Yeoju (S. Korea)
9. Delareyville (S. Africa)
10. High River (near Calgary, Alberta, Canada)
11. San Martin, (Mexico)
12. Karkila, (Finland) Elsacom
13. Managua, (Nicaragua) Globalstar Americas
14. Moscow, (Russia)
15. Dubbo (New South Wales, Australia)
Additional 11 undergoing installation; expect 26 in operation by end of Q2
52K phones manufactured by y/e 99; 40K will be shipped
Ericson "type approval" was delayed; OK now
"lawful intercept" issue with DoJ, DoD, FCC in US settled, except for signing formalities; confident will be signed off by end of year
"Universal Pricing Structure: not to exceed USD 1.50/minute regional calls; 2.99/minute international/roaming(?)
After the 150M$ convertible offering, G* has 500M$ cash and available credit as of y/e (300M$ cash; 200M$ credit)
In US, G* phones will have two numbers; one for sat access, one for conventional cellular; s/w upgrades in work now to make it so there's a single number; anticipate by 3rd quarter 2000
G* Canada started commercial service 12/15; has 14 distributors/dealers
Mexico: Rollout in Feb; Billable service in March
1000 phones in country now; two distributors
Brazil: first bills being printed now (for 100 subs); 4K phones in country now; 7K by end of December; 14 distributors with 70 "points of presence" plus sub resellers totalling 1100 outlets (!)
Italy: 1000 Telit phones on hand; 700 subscriber contracts signed; additional 2K phones by end of year; 400 Marine kits ordered for installation next quarter; Maring operators in Italy anticpate prepaid contracts for up to 1M MoU for cruise ships
Germany: start commercial service 15 January; 100-1000 phones pre staged for delivery there
Phones in use by Italian peacekeepers in Kosovo;
TESAM Opening ceremony in Louvre 8December. 1Feb commercial start; 1200 phones in place by y/e; expect 3000 phones by end of January
Argentina: Soft rolloout 15January; full commercial launch 1 February
Venezuela-starting test calls now
Peru-Start in March
Beijing- Full commercial launch 1 February; 10K phones to be ordered by China Telecom this month
Two additional GWs on line in 2nd and 3rd quarter
Korea start of service January
Russia: Operating license by year end; 15 Feb soft launch; 1 March commercial from Moscow GW; Novisibersk and Khaborovsk GWS on line in April and June, respectively
India: Has an SP; can't name because of nondisclosure agreement; hopes to announce in Q2, have on line by end of Y2K.
Phone production; expect 200K shipped by end of Q1; 300K by end of Q2
Additional production contract announcement not until March/April
Vendor financing agreement with Qualcomm in place except for small details
Billable service on line in 10 countries by 1 February
Billable service on line in 29 countries by 1 March
Expect 600-650K phones manufactured by y/e 2000; 550-600K in users hands;
Consistent with phone production constraint, forecasting 300M$ in Revenue in Y2K |
