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Technology Stocks : American Mobile Satellite (skyc)
SKYC 6.1750.0%Feb 6 9:30 AM EST

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To: VALUESPEC who wrote (138)2/28/1998 3:50:00 PM
From: VALUESPEC  Read Replies (1) of 400
 
I was thinking today about SKYC sales and how they might be able to reach a broader market with their system. This led me to think that in an ideal world, every car in the US should be equipped with the capability to make 911 phone calls in case the car breaks down in a remote area, or in case help is needed quickly, etc.

It seems to me that the new remote interactive pager (RIM) is probably close to making the use of the SKYC/Ardis system available for low cost emergency 911 use. The most inconvenient thing about using the RIM is that you would have to type all the information into the device which could be cumbersome, especially under duress as during an accident.

New technology is now available from companies like Dragon and Lernout & Hauspie Speech Products (LHSPF) that will enable you to speak into a device and have it follow your commands and/or type the words you speak. The latest versions of these systems just came out and I believe these systems, when implemented into pagers like the RIM, will greatly increase the need for SKYC/Ardis systems.

If you could speak into a device that would then type and transmit your words to an emergency station, that would seem to be much more practical then a system that requires you to type your words on a a small keypad.

A few additional thoughts:

a) SKYC could have its Omni-Quest telephones for rent in U-Haul centers for use by travelers who are going on long trips. Often mobile phone users don't need the nationwide coverage, but sometimes, when they are on especially long trips, they may want/need the phone for business or for safety reasons. I'll check my local rental centers soon to see if anything like this is being offered or has ever been offered.

b) I'm guessing a $ 6- $ 10 per month emergency only device would be ideal to reach the mass markets.

c) Could some deal be made with AAA for its member's use in remote area break-downs? AAA could market a device provided by SKYC/Ardis that would only contact AAA which would then send out the appropriate dispatcher. This device would probably be able to automatically locate the location of the vehicle in case the member did not know where he was. Perhaps any time the device is used there could be an extra charge.

d) Sell the device to car makers who could offer the 911/AAA, or whatever, as a safety feature of its cars. With the SKYC/Ardis system, you could ALWAYS be sure you'd be able to reach the emergency services.

Anyway, these are some of my thoughts. I know there is great potential just lingering around the corner for SKYC/Ardis services. I believe the new speech recognition systems may be the catalyst that really makes them take off. Of course, who knows how long it will take for the proper devices to be made, but I know that Microsoft is very active in this field (they invested in LHSPF, for instance) and wants windows CE to incorporate speech recognition before too long.

I guess I'm thinking about these things because the SKYC/Ardis system is now available but only being used to a small degree. That is a shame. I wonder what the marginal cost of additional subscribers will be after they hit break-even. If it is real low, it seems to me that they might be best off it they offered cut-rate prices in order to increase demand.

VALUEPSEC
valuespec.com
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