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

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To: Don Limb who wrote (73)1/18/1997 12:46:00 AM
From: Scott Zion   of 381
 
I found this some time ago: analysys.co.uk . I copied the business strategy and posted it below. If they meet their plan...minimum estimates are:

30000000 subscribers * 0.35 $/minute * 10 minutes/month.per.subscriber * 12 months = 1.26 Billion$/year

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Business Strategy

Globalstar believes that there is a very substantial unmet demand for telecommunications services worldwide, particularly in developing countries, and that the portion of this market addressable by MSS mobile and fixed voice services (based on projections of need and ability to pay) exceeds 30 million potential subscribers.

To penetrate this market, the Globalstar system has been designed as a low-cost, high quality system that will enable it to enlist the support of established telecommunications service providers, which Globalstar believes will be essential both to obtaining local regulatory licenses and rapidly accessing the broad market of potential users.

Local regulatory authorities maintain control. Globalstar's architecture has been designed so that all calls, including international calls, will enter the service provider's existing land-based network from the local gateway, rather than bypassing the existing telephone network infrastructure. This gives the Globalstar service provider additional revenue opportunities and permits local regulatory authorities to exercise their accustomed degree of regulatory control, thereby strengthening Globalstar's service
provider support and facilitating local regulatory approval.

Globalstar's strategy for successful operation is based upon: (i) leveraging the marketing, operating and technical capabilities of its strategic partners; (ii) employing a system architecture designed to minimize cost and technological risks; and (iii) offering potential users worldwide low-cost, high quality telecommunications services. Leveraging the Capabilities of Globalstar's Strategic Partners

Globalstar has selected strategic partners whose marketing, operating and technical expertise will enhance Globalstar's capabilities; they are expected to play key roles in the design, construction, operation and marketing of the Globalstar system.

Telecommunications service providers AirTouch, Dacom, France Telecom, Elsag Bailey, and Vodafone will provide on-the-ground marketing and telephony expertise to Globalstar. These service provider partners have been granted exclusive rights to provide Globalstar service in areas of the world in which they have demonstrated particular marketing strength and experience and have access to an established customer base. Globalstar expects to benefit from the assistance of these partners in a wide range of areas, from design of the system's architecture and development of Globalstar's billing system to matters relating to international regulatory procedures. These service
providers are also providing input to Globalstar on adapting and modifying the functionality of Globalstar's subscriber terminals to reflect the needs and usage patterns of different markets.

Telecommunications equipment and aerospace systems manufacturers have contracted to design, build and deploy the Globalstar system. Loral Corporation has overall management responsibility for the Globalstar system, its design, construction, deployment and operations. In addition, Loral will build Globalstar's satellite operations control centers (SOCCs) and portions of its ground operations control centers (GOCCs).

QUALCOMM, Inc., using its code division multiple access (CDMA) technology, will design and manufacture subscriber terminals and gateways and will have primary responsibility for the design and manufacture of the GOCCs. Space Systems/Loral (SS/L) has a fixed-price contract for the construction of Globalstar's satellites, which it will perform in conjunction with various other members of the Space Systems Alliance (comprised of Aerospatiale Societe Nationale Industrielle, Alcatel, Daimler-Benz Aerospace and Finmeccanica) and with Hyundai.
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