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Technology Stocks : Loral Space & Communications

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To: Dragonfly who wrote (2449)	4/2/1998 11:20:00 PM
From: Valueman	Read Replies (1) of 10852

Dragonfly: I believe---make that, I know I have had a logical counterpoint to every "problem" you have come up with. I still do not understand why you claim to own Loral while doing your best to knock G. I have more to add, by the way, about Iridium pricing. Many would believe that making the call out of a foreign land costs you only the Iridium wholesale charge until it reaches the gateway nearest the destination. This is false. For instance, Lehman has published an example of a call made out of Indonesia. An Iridium call made from within Indonesia is subject to a $1.55/minute tail charge added on top of the $2.50 wholesale--that is $4.05 before the call makes its first trip over an ISL. Then add the gateway operator charge in the destination country, plus service provider markup, and then the long distance charge to get it from the gateway to the final destination. These charges, in this example, add up to $5.08 per minute. The same G call was $3.65. These are RETAIL rates. As far as capacity goes, it is very limited in both systems. There are only a certain number of circuits available, as well as a finite amount of power. I do not understand your comment on unlimited capacity.

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