Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 61.62

-4.7%

Jan 30 9:30 AM EST

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To: Larry L who wrote (77)	10/23/1997 5:40:00 PM
From: Maurice Winn	Read Replies (2) of 29987

LarryL how's that, some comment before you even asked for it in the next post! Thanks for these urls. techstocks.com techstocks.com techstocks.com Which describe the way Iridium will work, start date and some discussion about pricing. BrianH on the Iridium thread asked about depreciation and the answer was more or less, "don't worry, there is heaps of profit to be made - too bad if the system never gets really used". Well, I say bunk! Competition will exist in space just as it always has elsewhere. At some stage, Globalstar management will realize that the way to maximize profit is to charge as low as it takes to fill the system as quickly as handsets can be produced. That means cheap service. Iridium is STILL talking $2 to $4 dollars or some such. They can forget it. Globalstar will simply take nearly all the business, fill the satellites, charge way less than Iridium [unless demand is so huge that it really does work to charge $2 per minute], launch second, third and forth constellations with ever better technology and ever cheaper prices leaving all competitors scrambling in the old-fashioned idea of an underused network and excessively high prices. Having satellites with half their life over before they are half full is simply crazy. Handset production will be the key and a very profitable part of the satellite business for the first 4 years. Hugely profitable. After that, the network will make the money as competition mounts in handsets and per minute prices rise as capacity is reached. I hope Globalstar hasn't tied themselves into some weird fixed price contracts which don't totally allow subscriber-priced service to result in a fully used service as soon as possible. Preferably within three months of launch. I say Iridium will kill Inmarsat stone dead and Globalstar will kill Iridiumdumdum stone dead! There are simply too few people who will sign up in the 4 months from Sept 98 to when they can get a Globalstar service at much cheaper prices. And with a less clunky handset by the look of it, though Globalstar's handset will be like a small truck too! Maurice

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