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To: qveauriche who started this subject	2/13/2002 4:19:56 AM
From: Maurice Winn	of 586

uniontrib.com An article from 12 February. <According to the complaint, the company raised $20 billion after 1997, and $3.8 billion came from bondholders. A series of senior notes, with junk bond ratings, ranged in yield from 8.7 percent to 9.625 percent – almost all above 9 percent. The bonds are now selling at a nickel on the dollar, says Benink. Dawson lost $90,000 on his bonds.... ... "bandwidth was declining at a precipitous rate, thereby forcing the company to drastically lower its prices," according to the complaint.> Stack it high and sell it cheap is the way to handle Globalstar and Global Crossing. They have near-zero marginal costs to deliver another megabyte [until their systems are full] so they might as well sell it for what the market will bear and develop a huge market quickly. I would use gigabytes of internet data if it wasn't so expensive. People would yak on Globalstar phones for 1000 minutes a month if it was priced like the Leap Wireless 'eat all you like' Cricket business. Maybe Hutchison Whampoa will also try to grab Globalstar with a similar deal. They seem to have the cash and the markets and perhaps even the marketing knowhow, though I have no idea about their marketing prowess [I suspect it's not all that great because they had the first CDMA network in the world and didn't do much with it - in Hong Kong]. The Global Crossing asset acquisition looks like an opportunistic, bargain-priced, vertical integration to feed their businesses as the controlling shareholder of the restructured business. Not so hot for minority shareholders I expect [they can sell gigabytes to themselves and Singapore Technologies Telemedia for low prices]. Mqurice

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