"I am amazed at how obdurate, obstinate, slow-acting, and perhaps plain stupid the marketing people have been."
Maurice, I think you have a good point. The marketing was bad because they apparently still don't understand the kinds of people who will use this device in preference to any other:
1. News reporters
2. Emergency medical and law enforcement groups who need near 100 percent reliability and secure communications that are almost impossible to monitor by third parties.
3. Military personnel, including those belonging to terrorist groups, unfortunately.
4. Corporate staff who need convenient services, one billing, and top security.
All they had to do was sell the phone to these groups, which, by the way, include just about every rural Sheriff's Department in the U.S., along with enough phone time for two or three months of use, and that would be it. The service would sell itself after that.
As to the bondholders, I think that anyone buying at the current prices around 10 percent of face value should realize that they are buying something more like a speculative stock than a bond. Nevertheless, I would be surprised if one did not recover three to four times the value of a current investment in the bonds within the next three or four years. How well the bondholders to depends quite a lot on how the trustee for the bondholders represents their best interests. Note, the bond prospectus designates a trustee, who goes into action the moment there is a default.
Art Bechhoefer |
