Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 68.31

+4.9%

Dec 4 3:59 PM EST

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To: djane who wrote (3277)	3/5/1999 3:02:00 AM
From: Maurice Winn	Read Replies (1) of 29987

A lot of that is fair comment, but the total expenditure for all LEOs is irrelevant. Each system need only worry about their own costs and the total minutes available from all satellites will define the price of those minutes, in conjunction with the handset prices. There are only 12 or 13bn minutes of LEO available, of which only 1.5bn are available from Iridium. It remains to be seen whether ICO will be silly enough to actually launch their satellites and make it two constellations which will lose money. Globalstar's Constellation1 will cost about $4bn to build. AT 10c per minute, it will take 3 years at 12 bn minutes per year to pay off the capital. The rest of the system minutes will be profit. That's the wholesale price, so assuming Vodafone and the other service providers also charge 10c per minute, the minutes would only cost 20c per minute. That would be profitable. Anything more that they can charge is the yummy part. It doesn't sound a difficult sell if the handsets are as small as they are likely to be by the end of 2000. It means a very rapidly developing customer base is needed which means low minute prices initially until the system fills up. As JohnyJuba says - the handset production line needs to be fitted with personal latrine buckets so staff need not leave their posts! Better still, have 5 people per station so that if one gets a fainting spell, another steps forwards immediately. JohnyJuba is tending not to discriminate between satellites - falling victim to the 'all satellites are created equal' syndrome. They are not. ICO will have poor quality calls, with voice delay and long propagation distances meaning big phones and handsets going flat quickly. Iridium is stuck with expensive minutes. They can forget the crazy idea about data in Iridium and subsequent constellations. They made a mistake deciding to go ahead with Iridium in the first place.

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