Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 49.00

+1.5%

10:07 AM EST

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To: SidStock who wrote (156)	12/11/1997 11:18:00 AM
From: Fledermaus	Read Replies (2) of 29986

Please help me understand this gateway x coverage = profits thing about Globalstar. 16 gateways have 56% of target market which is traffic (high profit for gateway owners: they have more traffic); 22 gateways have 22% of the traffic (less traffic = perhaps profit?) 22 other gateways will have 22 % of the traffic (any profit?) If there is little profit, gateway investors will be hard to find. How does Globalstar intend to become GLOBAL earlier? It seems that it is only now realizing the setback of its gateway strategy (original numbers were 200 gateways, then lowered to 100, now 50 to 60 (and only 36 have been ordered...). What will Globalstar do to really become global in only 3 months (1Q99 to mid-99)?? I think Globalstar will have to go back to its original idea of owning the gateways (at least those ones nobody wants). Yet, this will increase their investment...by how much? They have postponed launches several times. With all the tests they have to go through to have the system up and running, would you say they will really make it for the first quarter of 99? And with only partial coverage of the market?

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