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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 48.85-4.4%2:05 PM EST

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To: qdog who wrote (23)10/9/1997 3:09:00 AM
From: Maurice Winn   of 29986
 
Thanks for that guff Qdog me old mate. Crikey, I dunno about this share splitting stuff. Strewth, you'd lose your dosh with an investment strategy like that.

Globalstar has been looking sweet. cdmaOne now works great, handset technology is a doddle, chips get better by the day, subscribers are lining up in the millions, spectrum is set up by WARC or whoever they were, finance is all set, earth stations are well under way, satellites and the rest pretty much on schedule.

But what do you think of the flat battery problem? Looks like a lorry of Mangere sludge getting ready to hit the fan. Do you think an auction system would work to allocate call space? You know, software in the gateway telling the satellite how much to charge people per minute based on battery charge, expected call demand over the next 24 hours, which is quite a few orbits. With the price changing constantly to match power supply to subscriber demand and call capacity. Subscribers glance at their handset and see if the price suits. If too high, they could wait a while for lower prices as demand eases later in the day.

If prices are getting consistently too high, subscribers could sell their handset to somebody who is prepared to pay. There could be buyback agreements on handsets if the price rises excessively, with deductions for how long the handset has been used by the subscriber.

How else can they prevent flat batteries and frustrated angry subscribers?

A similar method could be used for cdmaOne terrestrial systems. But that would be easier as there would be no power supply matching needed, just instantaneous customer demand.

John K. if Globalstar doesn't get this right [maybe they have but I've never seen anything about it] you won't be getting share splits. You'll be losing money as competitive systems which adopt such pricing take all the angry Globalstar customers.

Mqurice
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