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Technology Stocks : Loral Space & Communications
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To: JMD who wrote (1255)10/17/1997 5:27:00 PM
From: Larry L   of 10852
 
Dear Rah Rah:
First of all my information was that the 7 to 10 times capacity actually being achieved is over analog whereas TDMA has about 5 times the capacity of analog. If you would be so kind as to check your sources then I will check mine and we can compare notes.
As for cost differences I believe it is closer to $4B, possibly less due to cost overruns due to technical difficulties with their Gateways. This info. is from one of the articles on "WIRED" that was definately pro Teledesic and there was other inaccurate info. within.
As for design superiority; the huge majority of the problems that could possible occur can be fixed through software upgrades. Recent events in space, such as the Mars explorer have proven the relative ease with which that can be accomplished. I* has already proven through extensive testing that it will work. This whole issue about fixing glitches in space versus ground is simply grasping at straws. With up to 100 Gateways on the ground I hope that there will be a lot of Land Rovers available, better toss in a few boats to for that matter.
The only thing I object to are the blanket statements that "we are better because we have CDMA or we have a bent pipe system" At this point in the game, with no one having an operable system, that is all speculation.
One final point, this is not your basic consumer business. The basic consumer already has land based telephone capabilities. Those that don't have communications available will not be able to afford it at any price. Government and business are going to fund our success to a huge extent. In that event, the basic idea behind satellite communications, being in contact all the time anywhere, will be more important than the cost. In addition, it may come down to just what the customer believes. In any case there is still enough out there for all of us capitalist pigs.
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