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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 59.47-1.6%Nov 19 3:59 PM EST

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To: Rocket Scientist who wrote (19336)11/17/2000 2:13:19 PM
From: pcstel  Read Replies (2) of 29987
 
RS... You beat me to the "Submit" button.. So I guess that banks were not too interested in owning a couple of GEO's Ehh!! Of course, I have to give some credit to BLS for this one, banks are not just handing out money any more!!

Just wait until the winners of the 3G auctions try and get Infrastructure Equipment financed.. Who is going to Vendor Finance the equipment? Lucent? Nokia? NT? ERICY? It will be hard for these companies to raise the funding necessary to arrange Vendor Financing of these systems.. Most of them will simply tell the likes of VOD to arrange their own financing and then come talk to them with cash in hand. The late-great Infrastructure Vendor Financing machine will come to a hault.. Then these 3G license holders will have to "actually provide a business plan" to banks to get cash for the infrastructure build out.. And with the whopping prices and interest being paid to acquire the "rights of use" to the spectrum. The banks are going to require some form of proof of concept, that the wireless providers can ever hope to recoup the investment in 3G.. We have seen the auction process for 3G spectrum being delayed in several countries because the bidders have suddenly figured out that maybe they can not secure the funding for the bid process, let alone the Infrastructure build-out of 3G servcies. 3G dies due to lack of interest and funding... Then we go back to square one... How do these wireless service providers grow their systems using existing spectrum.. NarrowBand CDMA of course. IS-95 overlay is deployed in the large cities, and tri- mode/tri-band GSM/GPRS/IS-95 handsets are developed. It's the cheapest path to "near 3G" services for all those applications that require +100kbs data for mobile applications... You know.. All those Applications... Like... Uh!! Oh! Well.... There must be thousands of them....

PCSTEL
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