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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 62.88-0.5%Nov 14 9:30 AM EST

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To: djane who wrote (2834)2/9/1999 3:14:00 AM
From: Maurice Winn  Read Replies (2) of 29987
 
*Qcom technology impact on Globalstar* The MSM3100 and all the other technology advances are grist for the Globalstar mill. As ASICs improve, Globalstar handsets shrink, battery life improves. Each technological advance disproportionately improves the value of Globalstar. As WWeb advances, the prospects for a Constellation 2 with higher data rates improves. Launchers are getting cheaper and reliability will improve. Satellites will be cloned instead of individually handcrafted by Leonardo Da Vinci in Roma! Their costs will come down.

As the technology improves and costs come down, it means more people will be able to use Globalstar. They'll find the size and functionality of the handsets attractive and the cost acceptable. That means more profit for Globalstar whose job in life is to deliver many important benefits to subscribers at a low price. To deliver the right equipment at a low price, we need lots of technological advances, which have happily happened over the past 5 years while Globalstar has been in development and those developments have to be low cost technology. Which they are. An MSM3100 clone is a lot cheaper to produce than the original chipsets, so we can sell them at much higher margins than we could have sold the old chipsets which would not have been so valuable to subscribers.

Iridium simply can't perform the functions which Globalstar will be able to. 3G is going to be CDMA. Motorola is hoping to come up with a CDMA version of Iridium. Good luck, they'll need it. They can't use Qualcomm technology to do it either! No licences available because of the exclusive deal with Globalstar.

As Constellations 2 and 3 are put up, which can just plug in at lower altitudes with happy backward compatibility, handsets will be able to use whichever is most convenient and providing the right service. All will do voice, but only some will do WWeb.

Again, I'm making this up as I go, so correct me if I'm wrong!

But it does mean that Iridium is in big trouble compared with Globalstar - hastening to add that Iridium shareholders might still make a great return on investment. But they'll have to do it on Constellation 1.

RRR!!! Globalstar...

Maurice
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