Just received this post from Globalstar IR ...
This thoughtful (and quick) reply was in response to the email I sent yesterday to IR at Globalstar. If only my other companies provided such effective customer service!
I was very impressed. More importantly, many of my concerns were addressed. IR raised and confirmed some interesting points. The most compelling to me was the (?)confirmation(?) that the per call basis of every satellite call to the company is only $.05. If true, the profit margins are enormous.
I am preparing a follow-up letter to IR to confirm this specific information. Besides that, do any follow-up questions come to mind?
David
-----------------
Forwarded Message:
Subj: Globalstar
Date: 02/11/2000 5:35:44 PM EST
From: Mac.Jeffery@hq.loral.com (Mac Jeffery)
CC: irelations@hq.loral.com
Dear Mr. Pincus:
Thank you for your note of February 10. Naturally, we cannot comment on the projections about where our stock might or might not go, but the factual information you have collected on our company is generally correct.
But to your specific question about possible competition from global ISPs, bear in mind that Globalstar has all along stated that we have no intention of competing with cellular or any other terrestrial-based system. Instead, our service complements these systems, providing a dial-tone in areas outside the range of cellular and other systems. You correctly note that connectivity to both phone and data is becoming ever more available in hotels, airports and business centers, and Globalstar has no intention of competing there. But well over 80% of the world's land mass is still out of range of any wireless service, and it is here that Globalstar, in effect, has no competitor. To take just one example, only 5% of Australia's land mass has cell service, putting over 1 million people outside the range of cell. Similar pictures emerge in Brazil, southern Africa and many other areas where build-out of land-based systems will take many years, and in areas where population density is too thin, there may -never- be a terrestrial wireless system.
If you need more information, please visit our website at
www.globalstar.com, where a more detailed description of our services and technology can be found. Thanks very much for your interest in Globalstar.
Sincerely,
Mac Jeffery
Loral Space & Communications / Globalstar |
