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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 48.46+0.4%11:51 AM EST

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To: Valueman who wrote (11300)3/27/2000 1:18:00 PM
From: tero kuittinen  Read Replies (4) of 29986
 
Never mind Barings - analysts are herd animals. Here is today's most interesting news item: after getting the type approval, Ericsson was forced to announce the satellite mode stand-by time for its handset.

This is the piece of information Ericsson has been hiding; the company representative refused to comment as recently as during the CeBIT meeting. Now we know why. The handset has a satellite mode stand-by time of 3.5 hours.

This means that when you use the phone in its satellite mode, you need to recharge it six times a day. This is why Globalstar has been able to advertize its superiority over Iridium in handset size; they left out the battery technology.

So you end up with a handset that is smaller than the Iridium phone. But the product resulting from the trade-off is not commercially viable. How can any company possibly introduce a phone with a 3.5 hour stand-by time in the year 2000? Users would need to keep it turned off most of the time just to get through an 8 hour workday. Which means that this is not a phone in the traditional sense of the word - it's a device you can use to make phone calls, not receive them.

Tero
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