From Individual Inc. Which I recommend [I subscribe for $8 per month and it is a fast convenient info source]- "Globalstar L.P. announced today a substantial improvement in the average power efficiency of its worldwide, satellite-based telecommunications system. In an amended filing with the Federal Communications Commission on Wednesday, Globalstar said the average payload power required to serve all of its anticipated subscribers -- up to ten million worldwide -- has been reduced to 550 watts. In a previous filing in November, 1994, Globalstar estimated the average required power would be 660 watts. But Globalstar said its maturing design analysis has shown that the satellite system can handle the same number of subscribers by using 15 percent less average power. Globalstar emphasized that the maximum power of the system remains unchanged but that average power efficiency has been improved. The FCC filing was required following the decision by the World Radio Telecommunications Conference last November to
locate the feeder link frequencies requested by Globalstar. Globalstar, based in San Jose, Calif., was founded by Loral Space & Communications (NYSE:LSP) and QUALCOMM INC. (NASDAQ:QCOM). Other companies with partnership interests in Globalstar are AirTouch Communications, Alcatel [and others]"
Globalstar continues to improve. 10million customers x $100 per subscriber profit [total guess] = $1bn per year. 20% for GSTRF, rest for other shareholders = $200m for 10million GSTRF shares = $20 per share = $200 per share on P:E 10. Not bad! Discount current share price for 4 years = good ROI.
Globalstar's strategy is to use the service to supply non-phone regions, but I suspect they will have an embarrassment of customers and will have to allocate subscribers by price. 10 million is not many people out of 6 billion. 1:600!
On call price, Globalstar price is only for "local calls". If sent around the world, there will be extra charges for publicly switched networks. Iridium on the other hand will bounce the signal around their satellites, avoiding the extra charges. That gives them extra voice delay and presumably reduces number of calls per satellite because power consumption is very important, satellites having limited battery life and power supply. Globalstar's "bounce it back down" strategy seems to be the best, especially as long distance charges are rapidly falling to the long run marginal cost of extra capacity. By 2000, fibre surface calls will be cheap, so why muck about with satellite to satellite. Handset battery life will also be better with CDMA system [I think, but not certain how much]. Voice delay will be unacceptable once people get used to fibre service. But Asiasat think they are going to get away with geostationary service and the voice delays.
Coming up with the last bit of money isn't even an issue for Globalstar. All that matters is the price of that money. I think debt would be fine, but I suppose selling more shares at market value is legitimate and will strengthen the company finances for secondary launches. I checked out your longhorn cattle! I reckon it is great that a sheep milker in NZ can discuss GSTRF with a cowboy in Texas!
Do you think $100 per subscriber net profit per year is reasonable?
Bye, MIW |
