Globalstar Lowers Subscriber Estimates for 2000, Analyst Says
--From AOL News-- Cooters
New York, Feb. 8 (Bloomberg) -- Globalstar Telecommunications Ltd., a satellite-telephone company, lowered its year-end subscriber estimate because of delays in the production of handsets, an analyst said.
The company revised its customer forecast to about 450,000 from 650,000, Banc of America's Armand Musey said in a report. Delayed production of some of its Ericsson AB handsets has contributed to the revisions, he said. Globalstar wasn't immediately available to comment.
Globalstar, a network of 48 satellites, has revised subscriber estimates in recent months after attracting customers at a slower than expected pace, analysts have said. Globalstar, which began service in 11 countries on Jan. 1, said in October it expected to have 1 million subscribers by year-end.
``Due to the delays, Globalstar likely will have 80,000 handsets in the channel by the end of first quarter verses the 180,000 to 200,000 it previously expected,' said Musey, who has a ``buy' rating on the company.
Shares of Globalstar, which is 45-percent owned by Loral Space & Communications Ltd., fell 2 3/8 to 31 3/8 in early afternoon trading. They've fallen about 29 percent this year, after more than doubling in 1999.
Globalstar's other suppliers of handsets include San Diego- based Qualcomm Inc. and Telital Group of Italy.
New York-based Globalstar, which is charging about $1,500 for phones and about $1.50 a minute for service, said in December it expected to ship 200,000 handsets by the end of the first quarter. The company, which has produced 40,000 handsets, said it wants to have about 3 million subscribers in the next three years.
Feb/08/2000 13:09 |
