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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: robert packman who wrote (402)2/18/1998 1:28:00 PM
From: Michael Allard  Read Replies (1) of 29986
 
Robert:

As I understand it, the following 2 differences are the big ones for me:

1. - W/ Iridium, the core technology (TDMA) is located in the satellites, and therefore
is basically (hardware side) fixed for the life of the product. In Globalstar, the technology (CDMA) is ground based, and the satellites are used to reflect signals only (the "Bent
Pipe" terminology). In the event of new technologies, Globalstar will be able to adapt,
Iridium may not.

2. The Iridium system is completely satellite based. That is, you will contract with, and
use only Iridiums system. Since they send the signals from satellite to satellite around the
world, there will be a noticeable delay in voice transmissions. Globalstar on the other
hand, is designed to work in concert w/ other wireless carriers. You will have an
account with your wireless carrier, and use a Globalstar handset. Your primary usage
will be digital w/ your carrier, secondary will be analog while roaming, and lastly if
there is no cellular signal, your call will go through the satellite. But the satellite bounces
the signal right back to earth, and uses land lines to complete the call, thereby avoiding
any delay.

I think if you research back far enough, you will find that Iridium has changed their
original strategy. They were originally going to sell premium phones ($3,000 range) and
premium service ($3/minute) to premium travelers. They thought they could use the
phones anywhere in the world, including and especially in buildings. But the initial
testing showed that in building penetrations was too week, so they changed their
strategy, to one more in line with what Globalstar is doing. But because their network
costs almost twice as much, and they are not partnering with carriers, their service and
equipment will still be very expensive, especially as compared to Globalstars.

Good Luck to All!
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