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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 60.16-4.2%Jan 16 9:30 AM EST

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To: tensforme who wrote (13609)6/17/2000 2:06:00 AM
From: Maurice Winn  Read Replies (2) of 29987
 
<let's say AirTouch/Vod is paying $0.45 a minute to G*, what do you think is their lowest pricing point? They want to make a tidy profit and I would be surprised to see them come below $1.00 anytime soon for domestic calls. Is this a reasonable assumption???? >

No it's not.

That would give them 55c a minute gross profit and all they have to provide is a gateway worth $10m instead of a country-wide network for $$$$bns to provide inadequate terrestrial service for which they get about 20c a minute gross profit if they are lucky.

Something like 20c a minute would be more reasonable.

But of course there is also a selling job to be done, as you say. But it's pretty easy to explain what it is..."this phone works all over the USA, Canada and Mexico if you can see most of the sky coz it connects to a low orbit satellite, so NO voice delay"!

Maurice
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