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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 56.80+0.2%Nov 21 9:30 AM EST

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To: Maurice Winn who wrote (9301)1/6/2000 12:13:00 PM
From: P. Ramamoorthy  Read Replies (2) of 29987
 
So much has been said about the need for keeping in touch with relatives in developing countries and justifying the $1.5/min calls. Let us consider a hypothetical scenario. If 10% of the population in India are affluent and can afford the G* phones, that is about 100 Million people. Let us say, about 25% of this population subscribe to the G* phone, we are talking about 25 Million, that is about 10% of the USA population, an affluent country that can afford the $1.50/minute calls. Do I expect 25 million subscribers in US? I don't. Why there is a need for a sat phone here? How many of us travel regularly to remote areas of the world or even within US? The point? Affordability in the developing countries is not the answer for G* success but rather the business need. Business needs will drive the demand for G* sat phone, if the reliability of connection and voice clarity are guaranteed. Minutes will add up quickly because it is viewed as the cost of doing business. Time zones have further advantages too. There is a great need for a reliable connection to do business. There are lots of export businesses in India and China: software, contract programming (y2k, e commerce, etc.), clothing (GAP, Banana Republic, Tom Hilfiger, JC Penny, Sears, Bloomingdales, etc.), etc. These people have plants everywhere - middle east, some islands (where permits and tax holidays are generously given). I am sure China has a similar situation. imo. Ram
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