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Technology Stocks : CDMA, Globalstar versus Iridium, Inmarsat, etc.

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To: doormouse who wrote (110)6/3/1997 11:12:00 PM
From: Maurice Winn   of 381
 
Kibo, yes, 7.5 years Globalstar satellite life [more if they are lucky but that is the planned life]. Iridium has lower satellites and therefore reduced life. Globalstar has less voice delay even though Iridium is slightly lower due to switching delays in the space segment of the Iridium system.

Once Globalstar launches its second lot of satellites making 96 or so, voice delays will be reduced further due to propagation paths being less on average since the closest satellite will more usually be nearer overhead. These delays are so small [about 200 milliseconds for Globalstar] that voice delay shouldn't be much problem with the Low Earth Orbit satellites, but every millisecond counts, so the fewer the better.

Geostationary satellites are inherently hopeless and won't be used for voice - people get annoyed when their phone call shoots out towards the moon!

Having a longer satellite life reduces depreciation. Iridium is stuck with lower life and faster depreciation due to lower altitude and the need for replacement due to obsolescence, hence higher per minute call costs for them. Also they need more satellite power for switching through space instead of using the power for increased capacity.

I hope Globalstar plans for faster than expected demand and a fast launch of the second series of satellites. They think they will only be at 50% capacity by 2002. I reckon they'll be full up by then. Or sooner. Everyone is going to want one of those gadgets - the latest status symbol! What executive is going to want to be seen with a terrestrial only handset? They will want CDMA/GSM/analog terrestrial with Globalstar backup - with GPS, email, Web as well.

Maurice
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