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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 57.65+6.5%Feb 6 9:30 AM EST

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To: Valueman who wrote (2689)1/26/1999 11:42:00 PM
From: Maurice Winn  Read Replies (3) of 29987
 
40,000 handsets per month by December you say. With 6,000,000 needed to more or less fully load Constellation 1. That is 150 months of production = 12 years. So the system will die before it is half-used. Let's hope they have some Plan B for a rapid buildup of handset production capacity. Something like 200,000 per month seems like a more reasonable production rate, though I would aim at 400,000 per month with Constellation 2 already well into design completion and satellite production gearing up.

We could cut the handset production rate back because they expect to sell a lot of fixed phone boxes too.

Maybe they are thinking few people are going to want to buy the system and they don't want a lot of handsets sitting on the shelf to rot and be thrown out a year or two later.

Let's have a bit of confidence around the place. This is a great system which is going to sell hundreds of millions, not a few million, over the next 10 years. All technology improvements give advantage to Globalstar instead of terrestrial and as costs and technology improve dramatically, demand is going to skyrocket. Check out the Thin Phone for the sort of technology improvements coming down the 'pike.

Maurice
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