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Technology Stocks : CDMA, Globalstar versus Iridium, Inmarsat, etc.

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To: Maurice Winn who wrote (43)11/16/1996 8:21:00 PM
From: Maurice Winn   of 381
 
Well Maurice, Motorola are now interested in developing another CDMA low earth orbit satellite system for mobile phones. Looks as though the TDMA/GSM Iridium one isn't worth expanding or duplicating. So off they go to CDMA! But they have a long lead time so Globalstar will have the sky almost to itself in the CDMA stakes for several years. . Meanwhile, here is the original price projection. Hmmm. Not up to the Dec figure yet and everything is going well. Increased efficiency not included in the pricing either.
---------------------------------------------------------------------------------------------------------To Maurice Winn
From: Maurice Winn Apr 10 1996 6:19PM EST
Reply #1 of 43

Iridium depends on space switching, from satellite to satellite, whereas Globalstar will send signals straight back to ground for transmission through normal ground channels. Globalstar will have less voice delay [almost none], whereas Iridium will have more delay. Profits for Globalstar were projected as $18 per share 6 months ago by year 2000. At P:E = 10, that would mean $180 share price. Quite a way to go from the current $50! Should be:
Dec 1996 $80 [design finalized]
Dec 1997 $100 [initial launch]
Dec 1998 $140 [full launching and commercial operation]
Dec 1999 $180 or $200. [full operation, future system design]

Sorry folks, but I guess I enjoy talking to myself.
Maurice.

[I also wanted to keep the thread out in daylight from time to time]
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