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Technology Stocks : CDMA, Globalstar versus Iridium, Inmarsat, etc.
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To: Maurice Winn who wrote (277)8/28/1997 2:24:00 AM
From: Beefeater   of 381
 
We've had lots of interesting and stimulating discussion on the merits of G* and I*, mostly revolving around the issue of which system businessmen will choose, or tourits will choose. There hasn't been much said about a major part of G*'s business, which is the rural areas unserved by local phone service.

One of the biggest gambles may be the assumption of market demand for regional satellite service. The studies say that there are 30-50 million unserved people (out of a couple of billion) who want basic phone service and who can pay for it. When Standard & Poor's or Moody's comments on Globalstar's prospects, the main risk they outline, after the "unproven technology," is the unproven market demand for the service.

Right now we're riding on the assumption of those studies, and on Bernie's faith in the dream. I'm moved by the studies and swayed by the dream, 'else I wouldn't own the stock and follow this thread. Has anyone got some additional perspective or substantiation that will shed both light and hope in this area?

Also: What happens when/if the local phone companies build out their wire/cell systems to the regions targeted by Globalstar? Which system will have the cost advantage then? If Globalstar is undercut, how does that affect revenue and profit projections?

Thanks Maurice, Larry L, Mr. Adrenaline and others for a spirited and enlightening debate.
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