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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 61.62-4.7%Jan 30 9:30 AM EST

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To: Tahoetech who wrote (21355)1/20/2001 8:52:24 PM
From: tb98  Read Replies (1) of 29987
 
Tahoetech - "We are not competing with cellular"<<
I've given that a lot of thought...why would Chris Gent ever think G* could, or would, be a threat to his cellular business if, AND since, Vodaphone stood to reap such a profit from from the system? I asked Tall Blonde about that......

This is something I talked about over a year ago (and got heartily slammed and I think even got a Maurice rant - i'm a collector, I think Maurice's rants will stand the test of time and will someday appear at Sotheby's *S*)

"We're not competing with cellular." Believe it or not - I've heard this twice - the exact same words. The first time - was at Motorola during Iridium training. It was the first sentence out of John Richardson's mouth. deja vu a year later...Globalstar sales training "We are not competing with cellular"....can you say *red flag*?

OF COURSE G* and Iridium were/are competing with cellular....any minutes of use taken from a cellular company are COMPETITION...and for a cellular company to PROMOTE Globalstar - they have to admit that their coverage isn't quite as "seamless" as their advertising would lead you to believe. And the catch is - Globalstar can't survive on "Emergency Use" MOU's. That helped cripple Iridium....the World Emergency Package (which had pay as you go minutes) was GREAT for Motorola - it sold the phones....it was disasterous for Iridium - nobody used the minutes - ergo - no "pay as you go".

So - it's not even so much as true competition for the SP's....it's the PERCEPTION that the public has for their coverage...and having to admit they they DON'T cover "everywhere/all the time" "nationwide coverage"...."we go where you go" "Seamless nationwide network" "World Phone" "International Traveler Program" "Nextel's One Number/One Phone"... look at cellular carriers webpages and see how many times claims like that are made.....it's all public perception and branding of THEIR product that they don't want to hamper.
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