Robert, I think I don't understand your point because Globalstar uses wireless land-based networks and switches to satellite networks when needed. Globalstar doesn't use land-based wired networks except that once the call has arrived at a base station, it is sent through the wired world until it gets to the wireless gateway or base station nearest the destination handset.
Globalstar handset holders could start making calls now. They would only be able to make calls from nearby the 5 operating gateways [USA, France, Korea, Australia, Argentina]] and via terrestrial networks. They would only be able to make calls for 10 minute while satellites pass overhead, or maybe for 20 minutes since there are a couple of orbits with satellites in them now. Then they'd have to wait half a day for the earth to carry them back under the satellites again. But that might be fun for some people.
Personally, I think they should start selling handsets right now, and let people use the Globalstar system for no charge. That would get a few handsets in operation, and get things underway. We don't have to wait until it is all grown up before it can do something. Children crawl before they walk and help around the house before they get a real job. Same for this - let's get it going. They tell us it's working fine so far, though handoffs and other aspects aren't proven yet.
To those panicking about Globalstar share price dropping, that's what markets do. They go up and down. If it was a good buy last week, there is nothing that has changed to make it a good sell this week. You don't sell something just because others are or somebody offers you a rotten price for it. Okay, maybe they could have bought it cheaper, but they missed out. That's bad luck.
Globalstar could halve in price with another good financial panic. Especially if the next Soyuz crashes, which they sometimes do. Demand for Globalstar won't be known for a year yet, though October should give some indication. Patience people, patience. In the meantime, it's a guessing game. And confidence game.
Stocks in general are going down, so Globalstar will too. Iridium is having problems, so people are assuming Globalstar will too. Soros and the Black-Holes crowd at Long Term Capital Management were and maybe still are GSTRF shareholders. They are part of the hot shot, smart money gang with PhDs and algorithms, debt to equity ratios, interest rate risk analysis and all that jazz. So GSTRF will be responsive to their economic prognostications and gambling. Which could exacerbate any moves down in stock price. Don't worry about it.
Their algorithms don't have an effect on subscriber numbers, just the stock price. Things are good and getting better at Globalstar [give or take a few warts], so when the system is humming, the money will be rolling. All the trends are in favour of Globalstar and CDMA.
The court case on Monday will have an impact on whether Qualcomm's exclusive arrangement with Globalstar is all that exclusive. Maybe Motorola will be able to use the same CDMA technology if an OJ jury handles the Texan CDMA case.
Maurice |
