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Technology Stocks : Loral Space & Communications

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To: Snake who wrote (2671)4/21/1998 3:58:00 PM
From: Dragonfly  Read Replies (2) of 10852
 
Iridium and G* are 2 different systems with different cost and operating structures.

YES! YES YES!

Until pricing is flushed out, other factors dictate the investment, although pricing and cost are 1,2 in the profit equation. Pricing and demand (invariably tied together) are the key unknowns here, cost is known, although muddied by the different corporate structures.

Yes, I agree. And for me, demand is the biggest question.

One thing that I think hasn't been really realized is iridiums pricing plans have changed. This was confirmed again in one of the press releases today. The new pricing seems to be a "cost plus" which is the cost of a landline call pluse %25-%35. Since this is going to be tied into useage even more, it is hard to predict what this means for the profitability of the Iridium system.

Dragonfly
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