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Technology Stocks : IRID - Iridium World Communications IPO Announced!

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To: ML who wrote (2608)3/21/2000 3:01:00 PM
From: petersterling  Read Replies (2) of 2693
 
soundmint.com IRIDIUM REPRICING PLAN I believe that the Iridium System was designed to handle approximately 1.5 billion minutes per month (not per year) but is perhaps able to achieve 2/3rds of this (around 24,000 simultaneous global calls).

If the system could only handle 1 billion minutes a year this would translate to only around 2,000 simultaneous global connections of 3Kbps each, (6,000 Kbps total bandwidth). That bandwidth would be so pathetic, it would not be worth building. Orbcom has more bandwidth and their satellites weigh only 90lb.

At 1 billion minutes per month, it's not much but still plenty to support around 2 million customers as you only need a circuit for every 50-100 customers, (everyones not on the phone all day long).

You would never replace the satellites with the same low-bandwidth lemons. the existing services would die in 3-4 years. You would gradually put nexgen birds up for around $20-30 million each with a combined global capacity of around 1 Terabit and able to handle hundreds of thousands of simultaneous IPV6 connections. This would be a serious money earner and still underprice terrestrial competitors.

The new economy says customers are worth a lot in the stock market and Sound Mint's plan would create a lot of them in a hurry!

This lower-priced strategy would not be so well received by all the cellular partners who resold the Iridium system and who buy Motorola cell base stations and handsets. Get it?
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