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Technology Stocks : Loral Space & Communications
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To: Timothy R. Tierney who wrote (2477)4/4/1998 11:00:00 AM
From: Larry L  Read Replies (2) of 10852
 
JMD: I cannot seem to get a response from anyone else, perhaps you can help me out. G* is initially going after rural areas where service is not currently available, a good plan. However, there are already emerging a handful of regional satellite telecommunications providers that should be far less expensive than I* or G*. Should these prove successful then it should be an relatively easy task for other competitors to enter the regional market fairly quickly. These rural areas without service have little need for worldwide coverage, their region should be more than sufficient. I* on the other hand is going after the business travelers that need worldwide coverage. The point is that there are chinks in the armor of both I* and G* which demonstrate the wisdom of the shotgun approach (ie buy them all). The one that makes it (if they all don't) will be so big as to bury any losses on the others. Your thoughts please.

Larry
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