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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 48.46+0.4%11:51 AM EST

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To: pcstel who wrote (27667)3/9/2010 10:15:05 PM
From: Maurice Winn1 Recommendation  Read Replies (2) of 29986
 
PCS, you are forgetting that people who make voice calls pay for the total service including the devices they use.

Most people do forget that. They think for example that making royalties 0% will cause more sales of devices. That's not true. the royalty cost in the total cost of ownership of a device and using it for 2, 3 or 4 years is so trivial as to be insignificant.

You are saying that I am advocating "free" Globalstar. You have obviously not noticed that handsets are not free and I have never suggested they should be.

If somebody pays $1 million for a device, but gets free minutes, they would not really think that Globalstar is free. Most people would consider $1 million absurdly expensive, even if they do get a swarm of free minutes and megabytes each month.

Then reduce that $1 million until people start buying because the total value is good for them. Keep lowering it until the constellation can't take any more users without overload. Then start jacking up the megabyte price until it's all in balance.

Nobody is suggesting making Globalstar "free".

Indeed, SPOT is a good product to offer. But the marketing of minutes and voice services was never improved over that done by GLP. It was only because the satellites were going bung that they had to offer the eat all you like plan.

Indeed, making a profit is very good. Having plenty of money to pay bills and salaries does avoid bankruptcy. It will be interesting to see how GSAT's profits improve from constant losses. So far, the losses are reducing which is nice but that's not exactly enough to justify $2 billion in satellites and spectrum, gateways and devices, not to mention loans.

Let's see the colour of their "aggression".

Mqurice
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