Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 50.53

+4.7%

Nov 7 9:30 AM EST

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To: Jeff Vayda who wrote (27814)	5/20/2010 12:19:43 AM
From: Maurice Winn	1 Recommendation Read Replies (2) of 29986

Jeff, I'm not into losses [contrary to what PCSTel says]. <there is a loss leader price which gets some market traction. > I say make it profitable from day 1. That does not mean they need to include capital already committed, gone, and done. No matter what happens, the cost of the constellation and what-not will be gone as soon as the launch program is finished. They should cover marginal costs involved in new customers so that each time somebody connects, there's a gain, not a loss. So they shouldn't give away loss leader megabytes which they have to buy from some termination company. They should charge what it costs in money out the door, plus a little bit. Without knowing what the marginal costs are, I guess they are generally less than half a cent a megabyte covering a wide swathe of the civilized world. Something like 1c per minute for voice or 10c per MB would be enough to charge. Globalstar to Globalstar calls could be free. They could charge for the devices at a highly profitable rate - there's no need to sell those cheaply. It's the megabytes which will be in huge surplus immediately after launching, not the devices to use them - depending on how many devices are bought as a job lot. If they buy a million phones, that should be enough to get going with reasonable economies of scale and low enough unit costs. People could buy a couple of Globalstar phones for $1000 and enjoy free walkie-talkie communications across the USA for example. Mqurice

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