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Technology Stocks : IRID - Iridium World Communications IPO Announced!
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To: Fledermaus who wrote (289)12/9/1997 11:53:00 PM
From: Valueman  Read Replies (1) of 2693
 
Globalstar has never denied that mobile users are a higher margin market than fixed. I think the correct way to look at it is that the Globalstar system is flexible enough to do either, and in those areas that will use all their capacity for mobile users, Globalstar is savvy enough that they will be able to service the huge demand for fixed services as well by using Loral GEO satellites. Local governments are very interested in fixed systems--now Loral/Globalstar can supply both. Their is no better managed company---period. Nobody can know for sure what the demand will be in either fixed or mobile scenarios. Estimates, and remember they are only estimates, are constantly changing, and will continue to do so. If you are concerned about profitability, then the Globalstar business plan would certainly be more appealing to you than that of Iridium. Both will prosper, but Globalstar has lower costs--that is the bottom line. The merits/faults of both systems can be argued ad infinatum, but it is not worth the computer memory. There is a place for both companies, a profitable place. I am also an Iridium shareholder, but only as a small investment. Good luck to all!
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