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Technology Stocks : Loral Space & Communications
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To: Mr. Adrenaline who wrote (2157)3/10/1998 9:49:00 AM
From: JMD  Read Replies (4) of 10852
 
Mr. A, nothing wrong with your logic in comparing payback periods for the G* and I* constellations except for the assumptions that you have already correctly described as simplistic. The fact is that the two are not really competitors if they stick to their public plan as I* goes after the tasseled loafer set and G* goes after rural telephony. I suspect that things will unfold differently if there is not enough demand as the two will then go after one another's markets and G* should be able to underprice I* all day long and still make money. From all indications however, there's plenty of demand for both so I think the two will stay on independent paths.
Would very much appreciate your comment on MOT's announcement that I* will be using CDMA for its 2nd generation birds as it is so much 'kinder and gentler' on power usage than TDMA. I kinda think this is a big deal--how about you? Thanks for your post. Mike Doyle
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