Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 61.03

+0.3%

Nov 26 3:59 PM EST

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To: djane who wrote (3198)	2/27/1999 9:37:00 PM
From: Maurice Winn	Read Replies (1) of 29987

Well, since you posted it, let's see if we should panic. 12 bn minutes x 10 cents per minute = $1.2bn per year. Operating costs are small, so we get $1bn per year profit. Capital cost of the whole kaboodle might be $4bn including interest over the next year or two. $1bn profit looks okay for a $4bn investment. Then we launch Constellation2, 3 and 4. Revenue zooms up to 50 bn minutes x 10 cents = $5bn per year. Operating costs are not much bigger, so we get nearly $5bn per year profit. Constellation2, 3 and 4 will be less than Constellation1 to build. Gateway costs will be way down per satellite as they become mass produced. Same for satellites. Total capital will be about $10bn so we make $5bn on $10bn invested. I guess I can live with that too! Okay, deduct a bit for depreciation as the satellites only last 7 years. 10 cents a minute is CHEAP!!! We might even have to put the price up a bit to keep demand manageable. We might optimize profits by reducing the price to 5c per minute to stimulate demand to crazy levels so we then launch swarms of satellites at 600 km and take over from terrestrial services. Looks okay to me. Meanwhile, I'll be raking it in from Qualcomm too, because they'll be selling HEAPS of handsets. Especially as nobody will want the silly GSM/Globalstar models when GSM is replaced with WWeb CDMA networks and Ericy isn't licensed to produce the CDMA models. Not much anger and desperation here! Sure, we need to add Service Provider charges to the 10c per minute as well as 'tail' charges to carry the call around the world through fibre. So total call prices might be 22c per minute to the subscriber. I think that will get a LOT of takers. Especially since Europeans are paying over 40c per minute for GSM terrestrial service with holes everywhere. Maurice PS: Europe won't cut prices to stop us getting a bit of business!

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