Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 51.11

+8.9%

Nov 5 3:59 PM EST

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To: Maurice Winn who wrote (172)	12/17/1997 1:39:00 PM
From: Valueman	Read Replies (2) of 29986

Maurice: One variable you are not including is what might be called "spot-capacity." At any point on earth the capacity for the system is limited to the 3 birds over head, or 2, or in the fringes, maybe only one. Thus, your pricing would still vary tremendously because demand in these pockets of capacity will vary so much. That adds even more complexity to the pricing/billing. I don't believe G* could ever offer a rock bottom price because the local telcos need to charge for their land lines or cellular systems that will be linked to the G* user. For G*, each additional call is totally additive to bottom line, but for local partner owning the gateway, it is not. I think another reason to stay away from full capacity at the outset is that it is really unknown right now how the system will perform when maxed out. I believe the designers would like to ease into that situation and see what happens in localized areas before doing it to the whole system. Terrestrial CDMA systems had the same kind of gradual learning curve(and they are still learning).

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