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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 170.90

-1.3%

Nov 7 9:30 AM EST

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To: Ramsey Su who wrote (276)	12/7/1996 1:12:00 AM
From: Maurice Winn	of 152472

Hi Ramsey, Globalstar won't take over from land based systems other than in rural areas because in cities, the base stations can be only 10 km or less away from a handset, so power requirements are enormously less, so battery life will be miles better. Also, the cost of building satellites is going to remain way more expensive than base stations in cities, but not more expensive than base stations in rural areas. Globalstar per minute wholesale prices are going to be about 45 cents per minute. NextWave Telecom is going to be wholesaling at some price around 2 cents per minute or something I guess. I don't really know. Maybe 5 cents. So city folk won't pay the extra. But they WILL have dual mode Globalstar/local handsets, so when in cities they'll use the local service. When rural, they'll use Globalstar. Probably people will have two phones with the same number. A small nifty little city phone and a grunty big rural phone. Iridium is a dog!! Too expensive and technically difficult. Ericsson maybe has a share in Iridium, I don't know. Maurice

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